Herzberg's two- factor theory
Submits that the best way to motivate someone is by providing feedback and challenges that satisfy his or her higher-level needs. This theory considers two factors; hygiene factors and motivators. Hygiene factors satisfy the lower-order needs such as work
Expectancy theory
Vroom's expectancy theory asserts that a person's motivation to exert effort depends on three factors.
1- expectancy, the belief that his or her efforts will lead to performance.
2- instrumentality, the perceived connection between successful performance
Behavior modification
Proposed by B.F. Skinner, behavior modification techniques change performance through rewards or punishments. There are three types of behavior modification techniques. Positive reinforcement rewards behavior that leads to positive consequences, thereby i
Equity theory
This theory submits that people are strongly motivated to balance contributions (i.e., job performance) and rewards (i.e., compensation). For example, when people seek external equity, they look at how their pay compares to similar jobs in other companies
Acquired needs theory
This theory hypothesizes that people are not born with needs, but rather, develop them over time and experience. There are three needs: the need to achieve, the need to affiliate with others, and the need for power.
Carrot-stick issues
This theory is based on extrinsic rewards and punishments and the idea that "good" behavior is rewarded with a carrot (e.g., a pay raise or promotion), and that "bad" behavior is punished with a stick (e.g., no pay raise or demotion).
Critics of this theo
Job analysis
the process used to determine important aspects of a job and the characteristics a worker must have to be successful in that job.
Recruitment and selection
Job analysis identifies the job requirements of a position, a key step before recruiting can take place. Job analysis ensures that applicants are recruited from appropriate
sources and that the best people are ultimately hired.
Compensation
Job analysis identifies essential job functions and can be used to determine the relative worth of the job so the appropriate compensation is offered
Training
Job analysis defines what is required for the job, which helps inform what training is necessary based on employee skills
Performance appraisal
Job analysis helps define the standards on which employees are evaluated, a process of setting work standards, assessing performance and providing feedback to employees to motivate, correct and continue their performance.
Discovering unassigned duties
Job analysis also reveals job duties that may have been unknown before.
Information Collected in a Job Analysis
1. Work activities (major job tasks).
2. Human behaviors that are essential for job success, such as writing or communicating.
3. Machinery, tools, equipment and work aids that may be used on the job.
4. Performance standards (quantity and quality require
Steps in Job Analysis
1. Decide how the data will be used and how to collect it.
2. Look at relevant job charts and job descriptions to understand where the job fits and how it relates to others.
3. Select representative jobs if there are similar jobs.
4. Collect data to analy
JA Collection Methods
1. The critical incidents technique documents critical incidents that discover effective or ineffective job behavior.
2. The job elements method involves expert brainstorming that discovers characteristics of successful workers.
3. The structured intervie
Legal Requirements for a Job Analysis
It is important to identify knowledge, skills and other characteristics necessary for the job to ensure they are valid. The job analysis should be in writing, relevant to the job and reflect information obtained from multiple sources. When the job analysi
job description
outlines the tasks, duties and responsibilities of a job
what job descriptions need
-Job identification
-Exempt/non-exempt classification
-Job summary
-Responsibilities and duties
-Essential functions
-Authority of incumbent
-Standard of performance
-Working conditions
-Job specifications
Note: Job descriptions can also be useful tools i
Job specifications
expand on the job description and include:
-skills and abilities required (education, experience)
-physical demands (walking, standing, lifting, dexterity)
-interpersonal (communication)
Job design
the process of defining the way work is performed and identifying the tasks required in a particular job. It is an extension of a job analysis that focuses on improving jobs through technology and ergonomics to increase the efficiency and effectiveness of
when job design is used
used when
1.Redesign existing jobs to make them more effective.
2. Build a work unit from scratch.
3. A work group's size has increased or decreased, but the workload has remained the same.
Job redesign
used when the tasks, or how they are performed, change in an existing job.
Four Approaches to Job Design
mechanistic, motivational, biological, and perceptual-motor approaches
Mechanistic approach
Examines job design in terms of the easiest way to structure work so anyone can do it. The focus is on reducing difficulty and increasing efficiency.
Motivational approach
Examines job design in terms of job satisfaction and intrinsic motivation. The focus is on job enrichment and job enlargement.
Biological approach
Tries to minimize physical constraints by changing the work environment so anyone can perform the job. The focus is on decreasing injuries and increasing efficiencies.
Perceptual-motor approach
Tries to ensure that employees do not exceed their physical capabilities or limitations. The goal is to improve reliability and workplace safety.
T
T/F? Job analysis, job description and job design all affect who an organization wants to recruit and ultimately hire, but these processes are just one piece of the puzzle. An organization must also take into consideration the best sources from which to r
recruitment sources
internal candidates and external candidates are two types of:
internal candidates
already work for the organization and may be ready for a promotion
External candidates
not current employees and will have to be located through different sources.
Workforce Analysis
The strategic alignment of an organization's human capital with its business direction. It is important for an organization to develop a strategic workforce planning process that will identify the human capital needs required to meet business objectives.
Supply analysis
identifies the organization's competencies, analyzes staff demographics and identifies trends such as turnover.
Demand analysis
measures future activities and workloads.
Gap analysis
compares information from the supply analysis and the demand analysis to identify any gaps in current
organizational competencies and those needed in the future workforce.
Solution analysis
involves developing strategies to close any competency gaps and to reduce surplus competencies.
Forecasting
Being able to understand current market trends in labor gives organizations a competitive edge. If they are able to anticipate what may happen in the future, they are more likely to stay ahead of the competition. It is important, however, to review existi
what forecasting consists of
�Review and analyze workforce data to determine trends and areas for focus.
�Develop a list of functions and staff at key locations.
�Review current recruitment, staffing and retention processes to benchmark and determine best practices.
�Review and updat
Talent inventories
databases that summarize the skills and talents of each employee.
Replacement charts
show potential employees who are in direct line for promotion. It also shows employees' job performance and strengths and weaknesses, which help outline areas for further development.
Forecasting Labor Supply
To understand labor market trends, employers must keep up to date on current and future talent needs. Employers must know the skills and competencies they need to be successful and must also determine if those skills and competencies will be available whe
Markov Analysis (Transition Analysis)
Forecasting Internal Supply with a quantitative technique that provides information about an organization's potential promotion paths and its growth or reduction plans. It requires managers to identify all possible positions that may feed into a target po
Forecasting External Supply
Done through experience and observation (the quantity and quality of applicants, and how has it changed over time), and labor market statistics (government and professional organizations publish statistics on the labor market BLS, SHRM, US Census Bureau)
Labor Markets
this external influence on staffing addresses labor demand that is less predictable today due to globalization, changing demographics and many other factors. Options like outsourcing and new technologies
make predicting an organization's labor force more
Technology
this external influence on staffing addresses the fact that this can make products or services obsolete, thereby reducing demand for some jobs. Conversely, new product development can increase demand for other jobs, which can cause changes in knowledge, s
Economic Conditions
this external influence on staffing addresses an economy that expands and contracts, so changes are required in the talent and size of an organization's workforce. some key factors to consider in economic forecasting that drive hiring trends even before e
Labor Unions
this external influence on staffing addresses Union contracts that often leave little flexibility when it comes to staffing, making it absolutely essential for HR professionals in a unionized work setting to exercise
the utmost caution at every step of th
Succession Planning
this ensures that employees are recruited and developed with the anticipation that they will fill key roles in the company as positions become available. Through the succession planning process, organizations recruit superior employees, develop their know
Succession Planning Process
1. Identify future needs: The eventual replacement of top talent is inevitable in organizations, and maintaining top-notch leadership is vital for organizational continuity. It is important to estimate when replacements may be needed for those positions a
Internal Sources of Candidates
these lists refer to what type of staffing candidate?
Advantages:
� Have better knowledge of candidates' strengths and weaknesses.
� Have a more accurate view of candidates' skills.
� Candidates have a stronger commitment to the company.
� Increases emplo
Internal Staffing Strategies
strategies for this include qualification inventories, personnel replacement charts, job postings, internal communications, and succession planning
Qualification inventories
strategy that will track employee information to see how employees can be used to the best of their abilities. Inventories can track the following information:
a. Employee performance records.
b. Education.
c. Company-sponsored courses taken.
d. Languages
Personnel replacement charts
strategy that identifies an individual's readiness to step into other positions in the company, usually top management positions. The charts place individuals into readiness categories such as outstanding, satisfactory or needs improvement. They may also
Job postings
strategy may include a formal notice posted on bulletin boards in the organization or on the organization's internal
computer network. Job postings may include the following information: job description and duties, specific skills needed for the position,
Internal communications
strategy may include company newsletters, weekly e-mails or memos, and word of mouth
Succession planning strategy
strategy is used to fill top management positions and includes three main steps:
a. Identify key needs: Based on the organization's strategic plan, the succession plan should consider future key positions that will be needed, job descriptions for those po
Using the Internet to Recruit External Candidates
using the following resource:
1. Company website.
2. Job boards like CareerBuilder and Monster.
3. Networking websites like LinkedIn.
Pros: Cost-effective and cheaper than most mediums.
Cons: Can result in information overload; everyone can affordably pos
using tv to recruit externally
using this source has pros and cons:
Pros: Selective audiences. TV stations know who watch their programs, and they can give you that information.
Cons: It can be costly, there are time constraints (usually 30-60 seconds) and there are limitations on how
Industry Publications (Magazines)
external recruiting strategy
Pros:
� Selective audience: People who are interested in the organization's industry will have a better opportunity to see the advertisement.
� Long lasting: Magazines last for more than a month, and sometimes for years. Even
Newspapers
external recruiting strategy
Pros:
� Timely: Most newspapers are published daily or weekly.
� Cost-effective: It depends on the size, but for the price, the potential audience for the ad is large.
Cons:
� Competition: Lots of organizations place ads in ne
Constructing an Effective Advertisement
Use AIDA for ads:
1. attract ATTENTION by using eye-catching graphics to make it interesting to look at.
2. Create INTEREST by using phrases and words that draw people in.
3. Increase DESIRE by providing highlights of the job or available benefits.
4. Spu
temp agencies
external recruiting where
Pros:
� The agency does the recruiting work for the organization (e.g., drug testing, background checks, interviews, identification of specific skill sets).
Cons:
� It is 20-50 percent more expensive than permanent workers since
networking (referrals)
external recruiting strategy, "it's who you know"
Pros:
� Could connect with a great prospect without incurring costs associated with other recruiting methods.
Cons:
� Could result in strained relationships if the applicant is not hired.
� Could lead to a
college recruits
external recruiting strategy
Pros:
� Recruiters can connect with students who are eager and excited about getting their foot in the door and doing a job they have been educated for.
� Employers can offer internships to see if the person will work well wit
job fairs
external recruiting strategy
Pros:
� Face-to-face meetings allow for a more personal interaction.
� First impressions can be made.
� Both sides have an opportunity to ask questions.
Cons:
� Organizations can pay a fair amount of money with no guarantee of
Legal considerations for external recruiting
The ADEA generally makes it unlawful to include age preferences, limitations or specifications in job notices or advertisements. A job notice or advertisement may specify an age limit only in the rare circumstances where age is shown to be a BFOQ reasonab
Measuring Recruiting Effectiveness
Assessing the quality of recruitment sources helps human resource managers determine where the most cost-effective recruiting sources are and helps them determine where they want to direct their recruiting dollars.
What and how to measure
How many qualified applicants were attracted from
each recruitment source? Assessing the quantity and the quality of applicants produced by a source, and the cost of each source, are important pieces of information to track.
High-performance recruiting
High-performance recruiting applies bestpractices
management techniques to recruiting. It uses a benchmark oriented approach to analyze and measure the effectiveness of recruiting efforts, such as employee referrals
cost/benefit analysis of recruitment
while there are costs in terms of advertising, time spent and so forth, there are also turnover costs. If recruiting is not effective, high turnover may result, which then requires more recruiting. Also, better recruiting can help the organization with lo
effective recruiting steps
Step 1: Develop a job advertising database. Use a spreadsheet to track where and when jobs were advertised, the number of candidate responses, deadlines, effectiveness of posting and so forth. The data makes a great quick-reference guide for future positi
Selection Process
1. Identify minimally qualified applicants - From the pool of applicants HR identifies those who meet the minimum qualifications for the job by looking at a resume, etc.
2. Perform initial candidate assessment - HR then performs an initial assessment whic
Selection Assessment Methods
Recruiting qualified applicants is only half the battle. Selecting the best applicant for the job is essential, and much of the success relies on the methods used to evaluate candidates. The methods that will be reviewed are:
� Interest inventories: Perso
Interview Assessment Methods
A carefully planned and well-conducted interview provides opportunities for the following:
1. Observe an applicant's attributes that will affect job performance.
2. Obtain additional information on the applicant's education, work experience and job-relate
structured interview
A ___ interview has a preplanned agenda. The interviewer knows ahead of time what questions to ask and tries to stick to them. A structured format is reliable, valid and important, and it is a defense in discrimination claims in hiring and selection becau
unstructured interview
An ___ interview does not have a prepared agenda. It allows the applicant to set the pace of the interview. It does not always provide the necessary information on which to base a selection decision. The lack of structure makes it difficult to compare and
semi-structured interview
A ____ interview is best for most types of positions. An interview guide or list of questions in a certain order is developed and used during the interview. The guide, however, allows the interviewer to omit questions for which answers were previously giv
situational questions
these questions help to determine how an applicant would respond to real work situations. They can be measured through hypothetical, role play or actual problem solving situations. Example: "Suppose you were faced with the following situation: [provide an
behavioral questions
these questions pertain to past performance, assuming that individuals will do at least as well in a new position as in previous positions. Example: "Can you think of a time when [provide an example]? What did you do?
job related questions
these questions about relevant past experience. The questions are not hypothetical. Example: "What qualifies you for this job or position?
stress questions
these questions assess an applicant's ability to deal with highly stressful situations by asking the applicant a series of sometimes rude questions. These questions may have to be tailored for each candidate. Example: "I see that you have several convicti
puzzle questions
these questions are popular ways to assess an applicant's problem-solving ability or creativity. Example: "How would you determine the weight of this pen?
unstructured sequential administration
Several people interview the applicant in one-on-one interviews and then make a hiring decision. Each interviewer asks questions as they come to mind.
structured sequential administration
Each interviewer rates the applicant using a standard evaluation form and standardized questions
panel administration
A group of two or three people interview a candidate and then combine their ratings into a final panel score.
mass administration
A panel interviews several candidates at the same time and sees who takes the lead in formulating an answer
phone adminstration
A phone interview could be more accurate than a face-to-face interview for judging an applicant's intelligence and interpersonal skills. However, interviewers come to about the same conclusions regardless of whether the interview was conducted face to fac
video or web assisted administration
The use of products like Skype is growing for interviews
computerized administration
Questions come in rapid sequence and require the applicant to concentrate
making sure an interview is legal
analyse the job, develop questions focused on gathering information and that explore the applicant's willingness, list the things to look for in the applicant's responses and design a rating for.
what can be asked in an interview
Questions about the applicant's ability to perform specific job functions with or without reasonable accommodation.
� Questions about nonmedical qualifications and skills, such as education, experience, certifications and so forth.
� Questions asking appl
what cannot be asked in an interview
� Direct or indirect questions relating to race, religion, color, sex, national origin, age, political opinion or disabilities.
� Questions relating to illnesses, diseases, hospitalizations, physical defects, prescribed drugs, drug addiction or alcoholism
interview evaluation
make notes while the interview is still fresh, be familiar with the job, measure the applicant against job requirements, cite specific evidence to support ratings, be objective, avoid bias and perceptual effects (personal bias, halo/horn effect, similarit
ability tests
cognitive ability (verbal/mathematical reasoning) psychomotor ability (perceptual speed and accuracy) and physical ability (strength/dexterity)
Knowledge tests
type of test that measures what the individual knows at the time the test is taken.
Situational judgment tests
type of test that pose hypothetical situations to applicants and then offer several potential courses of action. Applicants are asked to choose the option they believe is the best solution. These tests are good predictors of job
performance in general.
specialized job knowledge tests
type of test that measures specific knowledge related to a
particular job. For example, a person applying for a compensation and benefits specialist position may be asked to take a test demonstrating his or her
knowledge in this area.
Big Five Personality Traits
Openness
Conscientiousness
Extraversion
Agreeableness
Neuroticism/emotional stability
Assessing personality can provide insight into an applicant. Conscientious people generally perform better than nonconscientious people. Extraversion has some predictive
Integrity Tests
these tests assess personality characteristics and measure ethical/socially responsible behavior
Work samples
used to measure how candidates perform some of a job's
basic tasks, making it harder for applicants to fake answers. This method tends to exhibit better validity than tests designed to predict performance. A basic procedure is to choose several tasks that
Management assessment centers
these offer multiple-day simulations in which 10-12
candidates perform realistic management tasks under the observation of experts who then appraise each candidate's potential.
Video-based situational tests
comprised of several video scenarios followed by
a multiple-choice question that requires candidates to choose from among several courses of action.
Miniature job training and evaluation
allows applicants to be trained to perform a sample of the job's tasks and are then evaluated on their performance. The approach assumes that a person who demonstrates that he or she can learn and perform the sample tasks will be able to learn and perform
Preparing for reference checks
1. Ideally, the interviewer should conduct the reference checks. If that is not possible, make sure the person who does them is an experienced person at the organization.
2. Customize the reference questions to relate to the position and the candidate.
3.
Conducting reference checks
1. The person conducting the reference check should introduce him- or herself by name and title and provide the interviewee's name.
2. Share the position title for which the candidate applied.
3. Verify the candidate's employment record.
4. Take notes and
Background Checks
Most employers check and verify an applicant's background information, including driving record, criminal charges or convictions, and credit.
Types of checks:
-Background checks tend to be an inexpensive and straightforward way to verify factual informati
Reasons for investigations and checks:
� Verify factual information provided by applicants.
� Uncover damaging information.
Negligent referrals
when a previous employer fails to disclose complete information about an applicant issue: former employer can be sued, to avoid defamation lawsuit a former employee may not be forthcoming with details about a previous employee's past work history
address
Negligent Hiring
when an employer hires an applicant it knows or should have known could harm a third party"
Issue: An organization is considered responsible for an incident that harms a third party if the employer failed to exercise its due diligence in hiring employees.
Ratings
� Consider the scores of any pre-employment tests that were used and the oral interview rating.
� It is not sufficient to compare only the overall ratings of applicants.
� If selection of an applicant is not in rank order or sequence, reasons for selectio
Value versus Risk
Weigh the pros and cons of hiring the individual. Some applicants have valuable skills but lack desirable characteristics. If the evaluation of an applicant indicates a potentially high value in a vital area and a possible risk in a less important area, t
Job Market
Consider the constraints of a fluctuating job market. Applicants who might not be considered in a plentiful
job market may have to be hired in a tight job market where there are fewer well-qualified applicants.
Notifying Applicants
� Notify the successful applicant by phone first, then by written confirmation.
� The confirmation or written offer of employment should include title, salary, job scope, start date and time, notification of probationary status, any other details of emplo
Full-time vs. part-time
full-time employees work 35 or more hours per week, can
be either exempt or non-exempt and earn organizational benefits. Part-time employees are usually non-exempt employees who do not earn benefits. Organizations can provide benefits to part-time employe
Contingent workers
sometimes known as just-in-time workers may come from an employment agency or the employer can hire individuals on a temporary basis. Temp employees are only paid for the hours they work and they do not earn time off or benefits.
Contract employees
these employees have an employment contract is a formal
agreement between two parties that outlines the terms and conditions of employment to which the parties agree. When the agreement is accepted, the contract dictates the employment relationship. The c
engagement
refers to being psychologically involved in, connected to and committed to getting one's job done
why engagement is important
Turnover, performance, absenteeism - Employees who are highly engaged feel a strong connection and responsibility for working hard and their productivity is higher. Turnover and absenteeism are higher for employees who are not engaged.
how to build engagement
-Communication - having strong two-way communication between managers and employees is critical. This helps employees understand how they contribute to the organization and feel a sense of accomplishment.
-Culture - building a culture that fosters engagem
Performance management
an integrated approach to ensure that an employee's performance supports and contributes to the organization's strategic aims.
Strategic purpose
An effective performance management system must align an employee's activities to the overall goals and aims of the organization. It can do this by determining the necessary behaviors and competencies that achieve the desired results. Then, ways to measur
Administrative purpose
The information gathered in a performance management system is crucial for making employment decisions, such as salary increases, promotions, employee recognition, terminations and layoffs
Developmental purpose
The last purpose relates to developing employees. This can mean defining areas of improvement for employees in their current jobs and designing plans of action, or it can mean developing employees' knowledge, skills and abilities for future jobs. Regardle
Supervisors
performance appraisal role who:
� Usually do the actual appraising.
� Must be familiar with basic appraisal techniques.
� Must understand and avoid problems that can cripple appraisals.
� Must know how to conduct appraisals fairly.
human resource department
performance appraisal role who:
� Serves a policy-making and advisory role.
� Provides advice and assistance regarding which appraisal tool to use.
� Trains supervisors to improve their appraisal skills.
� Monitors the appraisal system's effectiveness and
Individuals
performance appraisal role who:
� Must be engaged in the process.
� Help set goals.
� See the process as a tool for constructive improvement and development.
Steps in the Appraisal Process
1. Review the job description: Recall that job analysis supports many human resource functions (e.g., selection, training, compensation and performance evaluation). The goals of a job analysis are to determine the essential functions of a job, identify th
appraisal tool
when designing the ____ consider the fact that you need to measure work output, KSAs and progress/achievement. then factor in generic dimensions, actual job duties, and behavioral competencies to select the appropriate ___.
appraisal approaches
comparative, attribute, behavioral, results and quality are all types of what?
comparative approach
this appraisal approach focuses on comparing one employee to another employee on one or more overall measures of performance. it includes ranking, forced distribution, and paired comparison.
ranking
require managers to rank employees on a measure of performance.
a. Simple ranking asks evaluators to rank employees in the group from best to worst.
b. Alternation ranking asks evaluators to alternate between selecting the best employee, then the worst em
forced distribution
requires evaluators to rank employees into groups, usually based on a normal distribution curve. Evaluators place employees into multiple categories.
Ex. a manager is asked to rank 20% of the employees as above average performers, 60% as average performer
paired comparisons
asks evaluators to compare pairs of employees. Each employee is paired with every other employee, and then each paired employee is given a "higher performer" or "lower performer" ranking. When all pairs have been compared, the evaluator adds up the number
attribute approach
this performance appraisal approach measures specific characteristics identified as important for success (e.g., leadership, problem solving ability) and includes a graphic rating scale and mixed standard scale.
graphic rating scale
scale provides a list of traits and then asks evaluators to select how much of that specific trait the employee demonstrates based on a discrete scale (e.g., a 1-5 or 1-7 scale or a continuous scale) with end points such as "exceeds expectations" to "belo
mixed standard scale
scale provides statements describing behavior at three levels of performance (good, average and poor) for each performance dimension being measured. Thus, if three dimensions are being measured, the scale will consist of nine statements in random order to
Behavioral approach
this performance appraisal approach tries to identify specific behaviors that are necessary for job and organizational success. it includes critical incidents, BARS, behavior modification, and assessment centers.
critical incidents
these are observed and collected by managers to create overall records of quality and incidents when performance was lacking. This provides employees with specific examples of things they do well and areas where improvement is needed.
Behaviorally anchored rating scale (BARS)
scale uses critical incidents and anchors them to specific levels of performance (e.g., excellent, average, poor). This provides evaluators with examples of behaviors at each performance level for each dimension being measured so they can compare their em
organizational behavior modification (OBM)
based on reinforcement theory, it uses a four-step process to evaluate and reinforce employee behavior.
Step 1 is to identify a set of necessary behaviors.
Step 2 is to assess those behaviors.
Step 3 is to discuss the behaviors with employees and to set g
assessment centers
centers measure managerial performance using multiple raters that measure many different simulated exercises. The goal is to measure managerial potential. These tools are expensive, but they provide objective ratings of employees' potential as managers.
results approach
this performance appraisal approach focuses on measurable outcomes of the job, work group, department and organization. These approaches need objective measures of results and assume that those results are an accurate representation of the employee's cont
Management by objectives (MBO)
this uses a top-down approach to setting goals. First, top management defines the organization's strategic objectives, and then each level of the organization (and each employee) takes those objectives and defines their goals in relationship to them. Thes
productivity measurement and evaluation systems (proMES)
focuses on the continual process of measuring productivity and providing constant feedback to employees regarding
productivity to encourage greater performance levels. It involves a four-step process:
1. Define objectives.
2. Select measures to assess pro
quality approach
this performance appraisal approach focuses on two things: the customer, internal or external; and reducing/preventing errors. It takes a more systems-oriented view of evaluation, as opposed to just assessing the employee or work group. Includes the follo
SMART goals
Specific: Goals must be clearly defined, and any ambiguity must be eliminated.
Measurable: Goals must have a standard or performance measurement to provide individuals with a level of performance to reach for.
Achievable: Goals must be challenging to incr
F
T/F? having employees participate in goal setting is NOT valuable because:
� People are more motivated if they have some control over their work.
� Research shows that it is easier to set more difficult goals (and for employees to accept the goals) if the
Errors in Performance Appraisals
When appraisals are not completely objective, bias and judgment errors can occur.
1. Similarity errors occur when evaluators rate individuals who are more like themselves higher than those who are not as similar.
2. Contrast errors occur when individuals
Reducing Appraisal Errors
1. Be aware of the errors: Just bringing the error to someone's attention may be all that is needed to reduce the error.
2. Training: Training managers to identify and avoid errors can also help reduce the frequency of errors.
3. Use the appropriate metho
Providing Quality Feedback
1. Do your homework: be prepared. Review relevant documents and performance standards. Identify
specific discussion points, but leave time and flexibility for employees to make comments and to contribute.
2. Provide frequent feedback: Feedback should be a
causes of performance problems
reasons why an employee may not be performing at expected levels
-lack of skills or knowledge
-lack or resources or needed supports
-motivation
-issues outside of work
Lack of skills or knowledge
Sometimes an employee cannot perform as expected due to a lack of knowledge or skills. It could be that they are just inexperienced and need training or that they were inadequately trained to begin with. The organization must determine which has occurred.
Lack of resources or needed supports
Sometimes poor performance is not the fault of the employee. It could be that management or the organization is not providing them with the needed resources to be successful. Speaking with employees about this to determine how the organization can better
Motivation
In some cases the employee is the reason that performance is not at expected levels. __ is a big/complicated factor. Understanding an individual's motivation takes time. The manager must understand the reasons behind the poor motivation and attempt, if po
Issues outside of work
Sometimes an employee has trouble performing at work because there are issues in their personal life. In these instances managers need to decide if anything can be done through the organization to offer support. If the individual is going through a family
Performance Improvement Programs (PIPs)
programs for employees who are underperforming and need firm goals to improve. process is as follows:
review standards
review performance deficieny
determine needed steps
review PIP with HR and dept manager
meet with emp'ee and agree on deadlines
establis
voluntary turnover
when an employee leaves an organization of their own choosing. They could be doing so because they have found another job, because their spouse is being relocated, or because they want to go back to school, etc.
reasons for involuntary turnover: poor perf
poor performance
the failure to perform assigned duties or to meet required job standards. Specific reasons may include excessive absenteeism or a continuous failure to meet normal job requirements.
misconduct
deliberate and willful violation of the employer's rules. It includes policy violations or illegal activities (stealing).
insubordination
sometimes the grounds for dismissal. The two basic
categories of ___ are unwillingness to carry out the manager's orders, and disrespectful behavior toward the manager
lack of qualifications
an employee's inability to do the assigned work, although
he or she is diligent. Because this employee may be trying to do the job, it is reasonable to try to salvage him or her�perhaps by assigning the employee to another job.
changed job requirements
an employee's incapability of doing the job after the nature of the job has changed. Similarly, the employee may need to be dismissed employee when his or her job is eliminated. If the employee is industrious, it may be reasonable to retrain or transfer t
involuntary turnover
occurs when the organization terminates an employee
Legal Issues in Involuntary Terminations
in the US, the doctrine of "employment at will" or "at-will employment" refers to an employment relationship between an employer and an employee, under which either party can terminate the relationship without notice, at
any time and for any reason not pr
Wrongful discharge
occurs when an employee's dismissal does not comply with the law or with the contractual arrangement stated or implied by the employer.
to avoid this make sure you:
-have a procedure of progressive discipline
-allow employee to explain
-manager should con
human resource measure of effectiveness
measured through scorecards, strategy maps, and digital dashboards
human resource scorecard
derived from a tool, called the balanced scorecard, for
measuring organizational effectiveness. It results from the process of creating financial and non-financial metrics that align with the strategic goals of an organization.
strategy map
outlines each department's relationship to achieving organizational goals and helps managers visualize what roles their departments play in organizational success.
Digital dashboards
provide visual representations of data using charts and graphs to report real-time updates on each metric being used to measure success.
Human Resource Scorecard Process
1. Define strategic goals
2. Outline the organization's value chain: Identify the primary activities that create value for customers and the
related support activities.
3. Outline a strategy map: sequence of major activities that aid organizational succes
Measurement Concepts
critical ways HR can measure its effectivenes through data-mining, benchmarking, and HR audits. GOAL: Critically evaluate HR practices using data, facts, analytics, scientific rigor, critical evaluation, and research/case studies to support human resource
data-mining
sifts through huge amounts of employee data to identify correlations that employers then use to improve their employee-selection and other practices. HR must determine which measures will gauge whether new HR policies and practices are producing the requi
benchmarking
the process of determining how an organization is performing in comparison to other companies. Usually, companies select companies with of high-performing practices for comparison. The goal is to understand what they do that makes them better.
HR Audits
an analysis by which an organization measures where it currently stands and determines what it has to accomplish to improve its HR functions. HR collects data on issues like employee turnover and safety, etc
Benchmarking process
1. Determine areas to benchmark (i.e. compensation, turnover rates, time-to-hire).
2. Determine specific questions or information you want to gather (i.e. Do our benchmark organizations recruit via the internet?)
3. Select organizations to benchmark again
Areas of HR Audits
Ten major areas:
1. Recruitment and selection: job descriptions, selection tools, and background checks
2. Compensation: methods used to determine compensation, consistency, and market
3. Employee relations: labor agreements, performance management, disci
Trend Analysis
uses past employment patterns to forecast future needs. It is an essential element in the demand analysis phase and provides data that describes how trends such as turnover will affect the workforce and is a key element in the overall planning process.
Ex
Ratio Analysis
a forecasting technique based on the ratio of a causal factor to a number of employees. Ex. sales volume is a causal factor that determines the number of employees required to meet the sales volume (number of sales people).
This fixed ratio can then be us
4 new hires
Ameriglass employs two sales associates who produce $500,000 in sales annually. How many employees must Ameriglass hire to reach $3 mill in sales while keeping ratios of sales associates to annual sales?
(# of workers x earnings)= Y
sales goal/earnings=Z
ratio analysis pros and cons
Advantages
1. The ratio analysis is easy to calculate if the target revenue has been identified and if the existing revenue and the number of current employees is known. These factors
will enable you estimate how many individuals are needed in the future.
scatter plot
a graphical representation of the relationship between two variables.
ex. A scatter plot shows the relationship between sales multiplied by $10,000 and the number of sales employees, here we can use the regression line to estimate the number of employees
yield pyramid
a historical arithmetic relationship between recruitment leads, invitations and interviews that can help recruiters figure out how many leads are necessary to yield the number of interviews they need and how many offers need to be made to produce the numb
Return on Investment (ROI)
calculates financial benefits of HR practices and activities (like training) Aligns training with organizational needs, Earns respect, Justify the budget, Improves support, and Isolates effects of training
how to calculate ROI
1. Assign financial value to hard-to-define things like job satisfaction and commitment.
2. Calculate the cost of training.
3. Determine benefit/cost ratio: BCR = Total program benefits / Total costs
4. Determine ROI: ROI = Net program benefits / Total co
66.6%
an organization has product returns totaling $1,000,000. A new training program is a one time investment of $300,000 and will reduce quality errors by 50%. This means a savings of $500,000. The net savings for the first year will be $200,000. What is the
calculation for turnover
# of emp'ees leaving org/ total # of emp'ees
types of turnover
1. Voluntary: When an employee decides to leave the organization.
2. Involuntary: When an employee is terminated.
3. Functional: When poor performers leave the organization.
4. Dysfunctional: When good performers leave the organization.
Employee turnover
Retention Management
includes
-Selection
-Growth
-Career direction
-Meaningful work and ownership
-Recognition and rewards
-Culture
-Work/life support
Absenteeism
the failure of employees to report to work during scheduled working hours.
Costs of Absenteeism
1. Direct costs: actual benefits paid to an absent employee to provide income during absences such as sick time, vacation time, paid time off and disability.
2
$1.8 million
A 2008 Mercer study found that, on average, the estimated cost of employee absences amounted to 36 percent of an organization's payroll.
A company has 100 employees who are paid an average of $50,000 per year. The company's annual payroll cost is $5 milli
$250,000 per year
If the previous company (100 emp'ee making $50,000 annually, annual payroll cost is $5 million. total absence cost mirrors Mercer's average of 36 percent) could reduce its absenteeism rate by 5 percent, what would their cost savings be?
# of employees x p
Measuring Absenteeism
To control and reduce absenteeism costs, organizations must understand its causes using incidence rate and inactivity rate.
incidence rate
measure the number of absences per 100 employees during any given work period. In its basic form, this measure does not account for the duration of an employee's absence.
The basic formula for the incidence rate is as follows:
#of incidents of absence x 1
8.8
calculate the incidence rate for an organization with 500 employees and 44 incidents of employee absence during one month (incident # x 100/ # of emp'ees)
inactivity rate
measure the percentage of time usually worked or scheduled that is lost due to absenteeism. The formula is as follows: Total hours of absence x 100/ Total hours scheduled to work
1.8
calculate the inactivity rate if 500 employees are scheduled to work eight hours per day during a 22 day work month, and the total employee absences equal 200 days.
(total hrs of absence x 100/ total hrs scheduled)
# of emp'ees x hrs worked x days worked=