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Human Resource Management

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Human Resource Management Dr. Hadia Hamdy Magda Hassan Yomna Samir Dina Mehrez Management Essentials Management involves setting goals and allocating scarce resources ... – PowerPoint PPT presentation

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Title: Human Resource Management


1
Human Resource Management
  • Dr. Hadia Hamdy
  • Magda Hassan
  • Yomna Samir
  • Dina Mehrez

2
Fundamentals of Human Resource Management
By Dina Mehrez
3
Management Essentials
  • Management involves setting goals and allocating
    scarce resources to achieve them.
  • Management is the process of efficiently
    achieving the objectives of the organization with
    and through people.

4
Management Essentials
  • Primary Functions of Management
  • Planning establishing goals
  • Organizing determining what activities need to
    be done
  • Leading assuring the right people are on the
    job and motivated
  • Controlling monitoring activities to be sure
    goals are met

5
Why is HRM Important to an Organization?
  • The role of human resource managers has changed.
    HRM jobs today require a new level of
    sophistication.
  • Employment legislation has placed new
    requirements on employers.
  • Jobs have become more technical and skilled.
  • Traditional job boundaries have become blurred
    with the advent of such things as project teams
    and telecommuting.
  • Global competition has increased demands for
    productivity.

6
Why is HRM Important to an Organization?
  • The Strategic Nature HRM must be
  • a strategic business partner and represent
    employees.
  • forward-thinking, support the business strategy,
    and assist the organization in maintaining
    competitive advantage.
  • concerned with the total cost of its function and
    for determining value added to the organization.

7
Why is HRM Important to an Organization?
  • HRM is the part of the organization concerned
    with the people dimension.
  • HRM is both a staff, or support function that
    assists line employees, and a function of every
    managers job.
  • HRM Certification
  • Colleges and universities offer HR programs.

8
Why is HRM Important to an Organization?
  • Four basic functions
  • Staffing
  • Training and Development
  • Motivation
  • Maintenance

9
How External Influences Affect HRM
  • Strategic Environment
  • Governmental Legislation
  • Labor Unions
  • Management Thought

10
How External Influences Affect HRM
  • HRM Strategic Environment includes
  • Globalization
  • Technology
  • Work force diversity
  • Changing skill requirements
  • Continuous improvement
  • Work process engineering
  • Decentralized work sites
  • Teams
  • Employee involvement
  • Ethics

11
How External Influences Affect HRM
  • Governmental Legislation
  • Laws supporting employer and employee actions
  • Labor Unions
  • Act on behalf of their members by negotiating
    contracts with management
  • Exist to assist workers
  • Constrain managers
  • Affect non unionized workforce

12
How External Influences Affect HRM
  • Management Thought
  • Management principles, such as those from
    scientific management or based on the Hawthorne
    studies influence the practice of HRM.
  • More recently, continuous improvement programs
    have had a significant influence on HRM
    activities.

13
Staffing Function Activities
  • Employment planning
  • ensures that staffing will contribute to the
    organizations mission and strategy
  • Job analysis
  • determining the specific skills, knowledge and
    abilities needed to be successful in a particular
    job
  • defining the essential functions of the job

14
Staffing Function Activities
  • Recruitment
  • the process of attracting a pool of qualified
    applicants that is representative of all groups
    in the labor market
  • Selection
  • the process of assessing who will be successful
    on the job, and
  • the communication of information to assist job
    candidates in their decision to accept an offer

15
Goals of the Training and Development Function
  • Activities in HRM concerned with assisting
    employees to develop up-to-date skills,
    knowledge, and abilities
  • Orientation and socialization help employees to
    adapt
  • Four phases of training and development
  • Employee training
  • Employee development
  • Organization development
  • Career development

16
The Motivation Function
  • Activities in HRM concerned with helping
    employees exert at high energy levels.
  • Implications are
  • Individual
  • Managerial
  • Organizational
  • Function of two factors
  • Ability
  • Willingness
  • Respect

17
The Motivation Function
  • Managing motivation includes
  • Job design
  • Setting performance standards
  • Establishing effective compensation and benefits
    programs
  • Understanding motivational theories

18
The Motivation Function
  • Classic Motivation Theories
  • Hierarchy of Needs Maslow
  • Theory X Theory Y McGregor
  • Motivation Hygiene Herzberg
  • Achievement, Affiliation, and Power Motives
    McClelland
  • Equity Theory Adams
  • Expectancy Theory - Vroom

19
How Important is the Maintenance Function?
  • Activities in HRM concerned with maintaining
    employees commitment and loyalty to the
    organization.
  • Health
  • Safety
  • Communications
  • Employee assistance programs
  • Effective communications programs provide for
    2-way communication to ensure that employees are
    well informed and that their voices are heard.

20
Translating HRM Functions into Practice
  • Four Functions
  • Employment
  • Training and development
  • Compensation/benefits
  • Employee relations

21
HRM in an Entrepreneurial Enterprise
  • General managers may perform HRM functions, HRM
    activities may be outsourced, or a single
    generalist may handle all the HRM functions.
  • Benefits include
  • freedom from many government regulations
  • an absence of bureaucracy
  • an opportunity to share in the success of the
    business

22
HRM in a Global Village
  • HRM functions are more complex when employees are
    located around the world.
  • Consideration must be given to such things as
    foreign language training, relocation and
    orientation processes, etc.
  • HRM also involves considering the needs of
    employees families when they are sent overseas.

23
HR and Corporate Ethics
  • HRM must
  • Make sure employees know about corporate ethics
    policies
  • Train employees and supervisors on how to act
    ethically

24
Human Resource Planning and Job Analysis

25
Introduction
  • Human resource planning is a process by which an
    organization ensures that
  • it has the right number and kinds of people
  • at the right place
  • at the right time
  • capable of effectively and efficiently completing
    those tasks that will help the organization
    achieve its overall strategic objectives.

26
Introduction
  • Linked to the organizations overall strategy and
    planning to compete domestically and globally.
  • Overall plans and objectives must be translated
    into the number and types of workers needed.
  • Senior HRM staff need to lead top management in
    planning for HRM issues.

27
An Organizational Framework
28
Linking Organizational Strategy to Human Resource
Planning
  • Ensures that people are available to meet the
    requirements set during strategic planning.
  • Assessing current human resources
  • A human resources inventory report summarizes
    information on current workers and their skills.
  • Human Resource Information Systems
  • HRIS are increasingly popular computerized
    databases that contain important information
    about employees.

29
Linking Organizational Strategy to Human Resource
Planning
  • Assessing current human resources
  • Succession planning
  • includes the development of replacement charts
  • portray middle-to-upper level management
    positions that may become vacant in the near
    future
  • lists information about individuals who might
    qualify to fill the positions

30
Linking Organizational Strategy to Human Resource
Planning
  • Determining the Demand for Labor
  • A human resource inventory can be developed to
    project year-by-year estimates of future HRM
    needs for every significant job level and type.
  • Forecasts must be made of the need for specific
    knowledge, skills and abilities.

31
Linking Organizational Strategy to Human Resource
Planning
  • Predicting the Future Labor Supply
  • A units supply of human resources comes from
  • new hires
  • contingent workers
  • transfers-in
  • individuals returning from leaves
  • Predicting these can range from simple to
    complex.

32
Linking Organizational Strategy to Human Resource
Planning
  • Predicting the Future Labor Supply
  • Decreases in internal supply come about through
  • Retirements
  • Dismissals
  • Transfers-out
  • Lay-offs
  • Voluntary quits
  • Sabbaticals
  • Prolonged illnesses
  • Deaths

33
Linking Organizational Strategy to Human Resource
Planning
  • Where Will We Find Workers
  • migration into a community
  • recent graduates
  • individuals returning from military service
  • increases in the number of unemployed and
    employed individuals seeking other opportunities,
    either part-time or full-time
  • The potential labor supply can be expanded by
    formal or on-the-job training.

34
Linking Organizational Strategy to Human Resource
Planning
  • Matching Labor Demand and Supply
  • Employment planning compares forecasts for demand
    and supply of workers.
  • Special attention should be paid to current and
    future shortages and overstaffing.
  • Recruitment or downsizing may be used to reduce
    supply and balance demand.
  • Rightsizing involves linking staffing levels to
    organizational goals.

35
Linking Organizational Strategy to Human Resource
Planning
Employment Planning and the Strategic Planning
Process
36
Job Analysis
  • Job Analysis is a systematic exploration of the
    activities within a job.
  • It defines and documents the duties,
    responsibilities and accountabilities of a job
    and the conditions under which a job is
    performed.

37
Job Analysis
  • Job Analysis Methods
  • Observation method job analyst watches
    employees directly or reviews film of workers on
    the job.
  • Individual interview method a team of job
    incumbents is selected and extensively
    interviewed.
  • Group interview method a number of job
    incumbents are interviewed simultaneously.

38
Job Analysis
  • Job Analysis Methods
  • Structured questionnaire method workers
    complete a specifically designed questionnaire.
  • Technical conference method uses supervisors
    with an extensive knowledge of the job.
  • Diary method job incumbents record their daily
    activities.
  • The best results are usually achieved with some
    combination of methods.

39
Job Analysis
  • Structured Job Analysis Techniques
  • Department of Labors Job Analysis Process
  • Information from observations and interviews is
    used to classify jobs by their involvement with
    data, people and things.
  • Information on thousands of titles available on
    ONet OnLine which is the Department of Labors
    replacement for the Dictionary of Occupational
    Titles.

40
Job Analysis
  • Position Analysis Questionnaire (PAQ)(developed
    at Purdue University)
  • Jobs are rated on 194 elements, grouped in six
    major divisions and 28 sections.
  • The elements represent requirements that are
    applicable to all types of jobs.
  • This type of quantitative questionnaire allows
    many different jobs to be compared with each
    other, however, it appears to be more applicable
    to higher-level professional jobs.

41
Job Analysis
  • Job Descriptions
  • Written statement of what jobholder does, how it
    is done, under what conditions and why.
  • Common format title duties distinguishing
    characteristics environmental conditions
    authority and responsibilities.
  • Used to describe the job to applicants, to guide
    new employees, and to evaluate employees.

42
Job Analysis
  • Job Specifications
  • States minimum acceptable qualifications.
  • Used to select employees who have the essential
    qualifications.

43
Job Analysis
  • Job Evaluations
  • Specify relative value of each job in the
    organization.
  • Used to design equitable compensation program.

44
Job Analysis
  • The Multi-faceted Nature of Job Analysis
  • Almost all HRM activities are tied to job
    analysis.
  • Job analysis is the starting point for sound HRM.

45
Job Analysis
  • Job Analysis and the Changing World of Work
  • Globalization, quality initiatives,
    telecommuting, and teams require adjustments to
    the components of a job.
  • Todays jobs often require not only technical
    skills but interpersonal skills and
    communication skills as well.

46
Recruitment and Selection
By Dr. Hadia Hamdy
47
Introduction
  • Recruiting
  • Once an organization identifies its human
    resource needs through employment planning, it
    can begin the process of recruiting potential
    candidates for actual or anticipated
    organizational vacancies.

48
Introduction
  • Recruiting brings together those with jobs to
    fill and those seeking jobs.

49
Recruiting Goals
  • To provide information that will attract a
    significant pool of qualified candidates and
    discourage unqualified ones from applying.

50
Recruiting Goals
  • Factors that affect recruiting efforts
  • Organizational size
  • Employment conditions in the area
  • Working conditions, salary and benefits offered
  • Organizational growth or decline

51
Recruiting Goals
  • Constraints on recruiting efforts include
  • Organization image
  • Job attractiveness
  • Internal organizational policies
  • Recruiting costs

52
Recruiting A Global Perspective
  • For some positions, the whole world is a relevant
    labor market.
  • Parent (Home) country nationals are recruited
    when an organization is searching for someone
    with extensive company experience to launch a
    very technical product in a country where it has
    never sold before.

53
Recruiting A Global Perspective
  • Host-country nationals (HCNs) are targeted as
    recruits when companies want each foreign
    subsidiary to have its own distinct national
    identity.
  • HCNs minimize potential problems with language,
    family adjustment and hostile political
    environments.

54
Recruiting Sources
  • Sources should match the position to be filled.
  • Sources
  • Internal Searches
  • Employee Referrals/
  • Recommendations
  • External Searches
  • Alternatives

55
Recruiting Sources
  • The internal search
  • Organizations that promote from within identify
    current employees for job openings
  • by having individuals bid for jobs
  • by using their HR management system
  • by utilizing employee referrals

56
Recruiting Sources
  • The internal search
  • Advantages of promoting from within include
  • morale building
  • encouragement of ambitious employees
  • availability of information on existing employee
    performance
  • cost-savings
  • internal candidates knowledge of the
    organization

57
Recruiting Sources
  • The internal search
  • Disadvantages include
  • possible inferiority of internal candidates
  • infighting and morale problems

58
Recruiting Sources
  • Employee referrals/recommendations
  • Current employees can be asked to recommend
    recruits.
  • Advantages include
  • the employees motivation to make a good
    recommendation
  • the availability of accurate job information for
    the recruit
  • Employee referrals tend to be more acceptable
    applicants, to be more likely to accept an offer
    and to have a higher survival rate.

59
Recruiting Sources
  • Employee referrals/recommendations
  • Disadvantages include
  • the possibility of friendship being confused with
    job performance

60
Recruiting Sources
  • External searches
  • Advertisements Must decide type and location of
    ad, depending on job decide whether to focus on
    job (job description) or on applicant (job
    specification).
  • Two factors influence the response rate
  • identification of the organization
  • labor market conditions

61
Recruiting Sources
  • External searches
  • Employment agencies
  • Public or state employment services focus on
    helping unemployed individuals with lower skill
    levels to find jobs.
  • Private employment agencies provide more
    comprehensive services and are perceived to offer
    positions and applicants of a higher caliber.

62
Recruiting Sources
  • External searches
  • Schools, colleges, and universities
  • May provide entry-level or experienced workers
    through their placement services.
  • May also help companies establish cooperative
    education assignments and internships.

63
Recruiting Sources
  • Recruitment alternatives
  • Temporary help services.
  • Temporary employees help organizations meet
    short-term fluctuations in HRM needs.
  • Older workers can also provide high quality
    temporary help.
  • Employee leasing.
  • Trained workers are employed by a leasing
    company, which provides them to employers when
    needed for a flat fee.
  • Typically remain with an organization for longer
    periods of time.

64
  • Questions???

65
(No Transcript)
66
Selection
67
Selection the process by which an organization
chooses from a list of applicants the person or
persons who best meet the selection criteria for
the position available, considering current
environmental conditions
68
Internal Environmental Factors Influencing
Selection
  • Organization characteristics that can influence
    the selection process
  • Size
  • Complexity
  • Technological ability

69
External Environmental Factors Influencing
Selection
  • Government employment laws and regulations
  • Size, composition, and availability of local
    labor markets

70
Selection Criteria
71
Reliability of Selection Criteria
  • Reliability how stable or repeatable a
    measurement is over a variety of testing
    conditions.

72
Validity of Selection Criteria
  • Validity addresses the questions of
  • What a selection tool measures
  • How well it has measured it
  • It is not sufficient for a selection tool to be
    reliable
  • The selection tool must also be valid

73
Steps in the Selection Process
74
The Selection Process
  • Initial Screening
  • Involves screening of inquiries and screening
    interviews.
  • Job description information is shared along with
    a salary range.

75
The Selection Process
  • Employment Interview
  • Interviews involve a face-to-face meeting with
    the candidate to probe areas not addressed by the
    application form or tests
  • Two strategies for effective use of interviews
  • 1. Structuring the interview to be reliable and
    valid
  • 2. Training managers on best interview techniques

76
The Selection Process
  • Types of Interviews
  • Unstructured interview
  • Structured interview
  • Behavioral Interviews
  • Candidates are observed not only for what they
    say, but how they behave.
  • Role playing is often used.
  • Stress Interviews.

77
The Selection Process
  • Realistic Job Preview
  • RJPs present unfavorable as well as favorable
    information about the job to applicants.
  • May include brochures, films, tours, work
    sampling, or verbal statements that realistically
    portray the job.
  • RJPs reduce turnover without lowering acceptance
    rates.

78
The Selection Process
  • Employment Tests
  • Mechanism that attempts to measure certain
    characteristics of individuals, e.g.,
  • aptitudes
  • intelligence
  • personality
  • Should be validated before being used to make
    hiring decisions

79
The Selection Process
  • Employment Tests
  • Estimates say 60 of all organizations use some
    type of employment tests.
  • Performance simulation tests requires the
    applicant to engage in specific job behaviors
    necessary for doing the job successfully.
  • Work sampling Job analysis is used to develop a
    miniature replica of the job on which an
    applicant demonstrates his/her skills.

80
The Selection Process
  • Employment Tests
  • Assessment centers A series of tests and
    exercises, including individual and group
    simulation tests, is used to assess managerial
    potential or other complex sets of skills.
  • Testing in a global arena Selection practices
    must be adapted to cultures and regulations of
    host country.

81
The Selection Process
  • Background Investigation
  • Verify information from the application form
  • Typical information verified includes
  • former employers
  • previous job performance
  • education
  • legal status to work
  • credit references
  • criminal records

82
The Selection Process
  • Background Investigation
  • Do not always provide an organization with
    meaningful information about applicants
  • Concerns over the legality of asking for and
    providing confidential information about
    applicants

83
The Selection Process
  • Physical Examinations
  • Should be required only after a conditional offer
    of employment has been made

84
Summary
  • Putting more money into selection can
    significantly reduce the amount of money it must
    spend on training
  • A selection system will make some mistakes
  • No guarantee of successful job performance

85
Questions????
86
Training and Development
By Magda Hassan
87
Agenda
  • The Socialization Process.
  • Employee Orientation.
  • Employee Training
  • Employee Development.
  • Organization Development.
  • Evaluation of Training Program.

88
Introduction
  • Socialization, training and development are all
    used to help new employees adapt to their new
    organizations and become fully productive.
  • Ideally, employees will understand and accept the
    behaviors desired by the organization, and will
    be able to attain their own goals by exhibiting
    these behaviors.

89
1. The socialization Process
  • Socialization
  • A process of adaptation to a new work role.
  • Adjustments must be made whenever individuals
    change jobs
  • The most profound adjustment occurs when an
    individual first enters an organization.

90
1. The socialization Process
  • The assumptions of employee socialization
  • Socialization strongly influences employee
    performance and organizational stability
  • Provides information on how to do the job and
    ensuring organizational fit.
  • New members suffer from anxiety, which motivates
    them to learn the values and norms of the
    organization.

91
1. The socialization Process
  • The assumptions of employee socialization
  • Socialization is influenced by subtle and less
    subtle statements and behaviors exhibited by
    colleagues, management, employees, clients and
    others.
  • Individuals adjust to new situations in
    remarkably similar ways.
  • All new employees go through a settling-in
    period.

92
1. The socialization Process
A Socialization Process
93
1. The socialization Process
  • The Socialization Process
  • Prearrival stage Individuals arrive with a set
    of values, attitudes and expectations which they
    have developed from previous experience and the
    selection process.

94
1. The socialization Process
  • The Socialization Process
  • Encounter stage Individuals discover how well
    their expectations match realities within the
    organization.
  • Where differences exist, socialization occurs to
    imbue the employee with the organizations
    standards.

95
1. The socialization Process
  • The Socialization Process
  • Metamorphosis stage Individuals have adapted to
    the organization, feel accepted and know what is
    expected of them.

96
2. New-Employee Orientation Purpose
  • Orientation may be done by the supervisor, the
    HRM staff or some combination.
  • Formal or informal, depending on the size of the
    organization.
  • Covers such things as
  • The organizations objectives
  • History
  • Philosophy
  • Procedures
  • Rules
  • HRM policies and benefits
  • Fellow employees

97
2. New-Employee Orientation
  • Learning the Organizations Culture
  • Culture includes long-standing, often unwritten
    rules about what is appropriate behavior.
  • Socialized employees know how things are done,
    what matters, and which behaviors and
    perspectives are acceptable.

98
2. New-Employee Orientation Roles
  • The CEOs Role in Orientation
  • Senior management are often visible during the
    new employee orientation process.
  • CEOs can
  • Welcome employees.
  • Provide a vision for the company.
  • Introduce company culture -- what matters.
  • Convey that the company cares about employees.
  • Allay some new employee anxieties and help them
    to feel good about their job choice.

99
2. New-Employee Orientation
  • HRMs Role in Orientation
  • Coordinating Role HRM instructs new employees
    when and where to report provides information
    about benefits choices.
  • Participant Role HRM offers its assistance for
    future employee needs (career guidance, training,
    etc.).

100
3. Employee Training
  • Definitions
  • Employee training
  • a learning experience designed to achieve a
    relatively permanent change in an individual that
    will improve the ability to perform on the job.
  • Employee development
  • future-oriented training, focusing on the
    personal growth of the employee.

101
3. Employee Training
Determining Training Needs
102
4. Methods of Employee Training
  • On-the-job training methods
  • Job Rotation
  • Understudy Assignments
  • Off-the-job training methods
  • Classroom lectures
  • Films and videos
  • Simulation exercises
  • Vestibule training

103
5.Employee Development
  • This future-oriented set of activities is
    predominantly an educational process.
  • All employees, regardless of level, can benefit
    from the methods previously used to develop
    managerial personnel.

104
5.Employee Development
  • Employee development methods
  • Job rotation involves moving employees to various
    positions in the organization to expand their
    skills, knowledge and abilities.
  • Assistant-to positions allow employees with
    potential to work under and be coached by
    successful managers.

105
6. Employee Development Methods
  • Employee development methods
  • Committee assignments provide opportunities for
  • decision-making
  • learning by watching others
  • becoming more familiar with organizational
    members and problems
  • Lecture courses and seminars benefit from todays
    technology and are often offered in a distance
    learning format.

106
6. Employee Development Methods
  • Employee development methods
  • Simulations include case studies, decision games
    and role plays and are intended to improve
    decision-making.
  • Outdoor training typically involves challenges
    which teach trainees the importance of teamwork.

107
7. Organization Development
  • What is change?
  • OD efforts support changes that are usually made
    in four areas
  • The organizations systems
  • Technology
  • Processes
  • People

108
7. Organization Development
  • Two metaphors clarify the change process.
  • The calm waters metaphor describes unfreezing the
    status quo, change to a new state, and refreezing
    to ensure that the change is permanent.
  • The white-water rapids metaphor recognizes
    todays business environment which is less stable
    and not as predictable.

109
8. Evaluating Training and Development
Effectiveness
  • Evaluating Training Programs
  • Typically, employee and manager opinions are
    used,
  • These opinions or reactions are not necessarily
    valid measures
  • Influenced by things like difficulty,
    entertainment value or personality of the
    instructor.
  • Performance-based measures (benefits gained) are
    better indicators of trainings
    cost-effectiveness.

110
Performance Appraisal and Compensation
By Yomna Sameer
111
Evaluating Employee Performance - Agenda
  • Purpose of performance management system
  • Difficulties in performance management system
  • Steps of the Appraisal process
  • Appraisal methods

112
Performance Evaluation
  • The performance management systems need to
    include
  • decisions about who should evaluate performance
  • what format should be used
  • how the results should be utilized

113
Purposes of a Performance Management System
  • Feedback - let employees know how well they have
    done and allow for employee input.
  • Development identify areas in which employees
    have deficiencies or weaknesses.

114
Difficulties in Performance Management Systems
  • Focus on the individual Discussions of
    performance may elicit strong emotions and may
    generate conflicts when subordinates and
    supervisors do not agree.

115
Difficulties in Performance Management Systems
  • Focus on the process Company policies and
    procedures may present barriers to a properly
    functioning appraisal process.
  • Additionally, appraisers may be poorly trained.

116
The Appraisal Process
117
Step 1 and 2
  • Establishment of performance standards
  • Derived from companys strategic goals.
  • Based on job analysis and job description.
  • Communication of performance standards to
    employee.

118
Step 3 and 4
  • Measurement of performance using information
    from
  • personal observation
  • statistical reports
  • oral reports
  • written reports
  • Comparison of actual performance with standards.

119
Step 5 and 6
  • Discussion of appraisal with employee.
  • Identification of corrective action where
    necessary.
  • Basic corrective action deals with causes.

120
Appraisal Methods
  • Three approaches
  • Absolute standards
  • Relative standards
  • Objectives

121
1. Absolute Standards
  • Evaluating absolute standards
  • An employees performance is measured against
    established standards.
  • Evaluation is independent of any other employee.

122
1. Absolute Standards
  • Essay Appraisal Appraiser writes narrative
    describing employee performance suggestions.
  • Critical Incident Appraisal Based on key
    behavior incident illustrating effective or
    ineffective job performance.

123
1. Absolute Standards
  • Checklist Appraisal Appraiser checks off
    behaviors that apply to the employee.
  • Adjective Rating Scale Appraisal Appraiser
    rates employee on a number of job-related
    factors.

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1. Absolute Standards
  • Forced-Choice Appraisal Appraisers choose from
    sets of statements which appear to be equally
    favorable, the statement which best describes the
    employee.

125
1. Absolute Standards
  • Behaviorally Anchored Rating Scales (BARS)
    Appraiser rates employee on factors which are
    defined by behavioral descriptions illustrating
    various dimensions along each rating scale.

126
2. Relative Method
  • Employees are evaluated by comparing their
    performance to the performance of other
    employees.

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2. Relative Method
  • Group Order Ranking Employees are placed in a
    classification reflecting their relative
    performance, such as top one-fifth.

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2. Relative Method
  • Individual Ranking Employees are ranked from
    highest to lowest.
  • Paired Comparison
  • Each individual is compared to every other.
  • Final ranking is based on number of times the
    individual is preferred member in a pair.

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3. Achieved Outcome Method
  • Management by Objectives (MBO)
  • includes mutual objective setting and evaluation
    based on the attainment of the specific objectives

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3. Achieved Outcome Method
  • Common elements in an MBO program are
  • goal specificity
  • participative decision making
  • an explicit time period
  • performance feedback
  • Effectively increases employee performance and
    organizational productivity.

131
Creating More Effective Performance Management
Systems
132
Development of Compensation and Pay systems -
Agenda
  • Objectives of compensation
  • Types of rewards
  • Development of a base pay system

133
Objectives of compensation
  • Efficiency
  • Quality
  • Performance
  • Cost
  • Fairness
  • Compliance

134
Types of Reward Plans
  • Intrinsic versus Extrinsic Rewards
  • Intrinsic rewards (personal satisfactions) come
    from the job itself, such as
  • pride in ones work
  • feelings of accomplishment
  • being part of a work team

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Types of Reward Plans
  • Intrinsic versus Extrinsic Rewards
  • Extrinsic rewards come from a source outside the
    job
  • include rewards offered mainly by management
  • Money
  • Promotions
  • Benefits

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Types of Reward Plans
  • Financial versus Non-financial Rewards
  • Financial rewards include
  • wages
  • bonuses
  • profit sharing
  • pension plans
  • paid leaves
  • purchase discounts
  • Non-financial rewards emphasize making life on
    the job more attractive employees vary greatly
    on what types they find desirable.

137
Introduction
138
Development of a Base Pay System
Job Analysis
Job Evaluation
Pay Survey
Job Structure
Pay Structure Grades
139
Development of a Base Pay System
  • Job Evaluation
  • Use of job analysis information to determine the
    relative value of each job in relation to all
    jobs within the organization.
  • The ranking of jobs
  • Labor market conditions
  • Collective bargaining
  • Individual skill differences

140
Development of a Base Pay System
  • Job Evaluation Methods
  • Ordering method A committee places jobs in a
    simple rank order from highest (worth highest
    pay) to lowest.

141
Development of a Base Pay System
  • Job Evaluation Methods
  • Classification method
  • Jobs are placed in classification grades
  • Compare their descriptions to the classification
    description and benchmarked jobs
  • Look for a common denominator such as skills,
    knowledge, or responsibility

142
Development of a Base Pay System
  • Job Evaluation Methods
  • Point method
  • Jobs are rated and allocated points on several
    identifiable criteria, using clearly defined
    rating scales.
  • Jobs with similar point totals are placed in
    similar pay grades.
  • Offers the greatest stability.

143
Development of a Base Pay System
  • Establishing the Pay Structure
  • Compensation surveys
  • Used to gather factual data on pay rates for
    other organizations
  • Information is often collected on associated
    employee benefits as well

144
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