Organizational Behavior: Chapter 73 Chapter 7 Human Resource Management Systems Study questions. – What are the essentials of human resource strategy and practice? – What is training and career planning and development? – What is performance appraisal? – What are rewards and reward systems?
Organizational Behavior: Chapter 74 What are the essentials of human resource strategy and practice? Human resource (HR) strategic planning. – The process of providing capable and motivated people to carry out the organization’s mission and strategy. – A key element is the staffing function, which consists of: Recruitment. Selection. Socialization.
Organizational Behavior: Chapter 75 What are the essentials of human resource strategy and practice? Job analysis. – Staffing begins with job analysis. – The process and procedures used to collect and classify information about tasks the organization needs to complete. – Identifies the worker characteristics needed to perform the job. – Forms the basis for a job description and job specifications.
Organizational Behavior: Chapter 76 What are the essentials of human resource strategy and practice? Recruitment. – The process of attracting the best qualified individuals to apply for a given job. – Typical recruitment steps. Advertisement of a position vacancy. Preliminary contact with potential job candidates. Preliminary screening to obtain a pool of candidates.
Organizational Behavior: Chapter 77 What are the essentials of human resource strategy and practice? Recruitment approaches. – External recruitment. – Internal recruitment. – Realistic job previews.
Organizational Behavior: Chapter 78 What are the essentials of human resource strategy and practice? Selection. – A series of steps from initial applicant screening to final hiring of the new employee. – Selection process. Completing application materials. Conducting an interview. Completing any necessary tests. Doing a background investigation. Deciding to hire or not to hire.
Organizational Behavior: Chapter 79 What are the essentials of human resource strategy and practice? Completing application materials. – Gathering information regarding an applicant’s background and experiences. – Typical application materials. Traditional application forms. Résumés. Sometimes tests may be included with application materials.
Organizational Behavior: Chapter 710 What are the essentials of human resource strategy and practice? Conducting an interview. – Typically used though they are subject to perceptual distortions. – Interviews can provide rough ideas concerning the person’s fit with the job and the organization.
Organizational Behavior: Chapter 711 What are the essentials of human resource strategy and practice? Completing any necessary tests. – Administered before or after the interview. – Common examples of employment tests. Cognitive, clerical, or mechanical aptitudes or abilities. Personality. Drug use. Performance. Assessment centers.
Organizational Behavior: Chapter 712 What are the essentials of human resource strategy and practice? Doing a background investigation. – Can be used early or late in selection process. – Background investigations include: Basic level checks. Reference checks.
Organizational Behavior: Chapter 713 What are the essentials of human resource strategy and practice? Deciding to hire or not to hire. – Draws on information produced in preceding selection steps. – A job offer is made. – A physical examination may be required if it is relevant to job performance. – Negotiation of salary and/or benefits for some jobs.
Organizational Behavior: Chapter 714 What are the essentials of human resource strategy and practice? Socialization. – The final step in the staffing process. – Involves orienting new employees to: The firm. The work units in which they will be working. The firm’s policies and procedures. The firm’s organizational culture.
Organizational Behavior: Chapter 715 What is training and career planning and development? Training. – A set of activities that provides the opportunity to acquire and improve job-related skills. – Types of training. On-the-job training. Apprenticeships. Job rotation. Off-the-job training.
Organizational Behavior: Chapter 716 What is training and career planning and development? Career planning and development. – Focus is on the long term. – Individuals work with their managers and/or HR experts on career issues.
Organizational Behavior: Chapter 717 What is training and career planning and development? Framework for formal career planning. – Personal assessment. – Analysis of opportunities. – Selection of career objectives. – Selection and implementation of plan. – Evaluation of results and revision of plan as necessary.
Organizational Behavior: Chapter 718 What is training and career planning and development? Career planning and development implications. – The nature of work is changing and continuous learning is required. – People must take charge of their own careers and build a portfolio of skills.
Organizational Behavior: Chapter 719 What is training and career planning and development? When considering a new job or possible job change, a person should ask and answer two questions. – What are my potential gains and losses? – What are the potential gains and losses for significant others?
Organizational Behavior: Chapter 720 What is training and career planning and development? Traditional career paths. – Entry and establishment. Involves on-the-job development of relevant skills and abilities. – Advancement. The individual seeks growth and increased responsibility. – Maintenance, withdrawal, and retirement. Individuals may experience continued growth of accomplishments or may encounter career stability. At some point, individuals consider withdrawal and ultimate retirement.
Organizational Behavior: Chapter 721 What is performance appraisal? Performance appraisal. – A process of systematically evaluating performance and providing feedback upon which performance adjustments can be made. – Performance appraisal should be based on job analysis, job description, and job specifications.
Organizational Behavior: Chapter 722 What is performance appraisal? Functions of performance appraisal. – Define the specific job criteria against which performance will be measured. – Measure past job performance accurately. – Justify rewards, thereby differentiating between high and low performance. – Define ratee’s needed development experiences.
Organizational Behavior: Chapter 723 What is performance appraisal? Purposes of performance appraisal. – The four functions describe two general purposes of good performance appraisal. Evaluation. Feedback and development.
Organizational Behavior: Chapter 724 What is performance appraisal? Evaluative decisions. – Concerned with issues regarding: Promotions Transfers. Terminations. Salary increases. – When these issues are decided on the basis of performance, a performance appraisal system is needed.
Organizational Behavior: Chapter 725 What is performance appraisal? Feedback and development decisions. – Letting ratees know where they stand in terms of expectations and performance objectives. – Feedback should involve a detailed discussion of the ratee’s strengths and weaknesses. – Feedback can be used as a basis for coaching and training by the manager.
Organizational Behavior: Chapter 726 What is performance appraisal? Who does the performance appraisal? – Ratee’s immediate superior. – Ratee’s peers. – Ratee’s subordinates. – 360-degree evaluation.
Organizational Behavior: Chapter 727 What is performance appraisal? Dimensions and standards of performance appraisal. – Output measures. Quantity of work output. Quality of work output. – Activity measures. Behavioral measures that are typically obtained from the evaluator’s observation and rating.
Organizational Behavior: Chapter 728 What is performance appraisal? Performance appraisal methods. – Comparative methods. Seek to identify a person’s relative standing among those people being rated. – Absolute methods. Specify precise measurement standards. – Collectivist-oriented cultures are less likely to use comparative methods and more likely to use absolute methods.
Organizational Behavior: Chapter 729 What is performance appraisal? Comparative methods of performance appraisal. – Ranking. – Paired comparison. – Forced distribution.
Organizational Behavior: Chapter 730 What is performance appraisal? Ranking. – Consists of rank ordering individuals from best to worst on each performance dimension. – Relatively simple to use. – Can be burdensome when evaluating a large number of people.
Organizational Behavior: Chapter 731 What is performance appraisal? Paired comparison. – Each person is directly compared with every other person being rated. – Final performance ranking reflects the frequency of endorsement across all pairs. – Can be very tedious when many people must be compared.
Organizational Behavior: Chapter 732 What is performance appraisal? Forced distribution. – Uses a small number of performance categories, and rater assigns a specific proportion of employees to each category. – Forces rater to use all categories. – Can be problematic if most of the employees perform similarly.
Organizational Behavior: Chapter 733 What is performance appraisal? Absolute methods of performance appraisal. – Graphic rating scales. – Critical incident diary. – Behaviorally anchored rating scales. – Management by objectives.
Organizational Behavior: Chapter 734 What is performance appraisal? Graphic rating scales. – List of dimensions related to high performance, and the rater assigns an individual score on each dimension. – Easy and efficient to use. – Conundrum of job relevance and generality across jobs.
Organizational Behavior: Chapter 735 What is performance appraisal? Critical incident diary. – Record of incidents of each subordinate’s behavior that led to unusual success or failure in a give performance aspect. – Excellent for development and feedback due to qualitative emphasis. – Difficult to use for evaluation due to lack of quantitative emphasis.
Organizational Behavior: Chapter 736 What is performance appraisal? Behaviorally anchored rating scales (BARS). – Developed through the careful collection of observable job behaviors that describe both superior and inferior performance. – A rating scale is developed that anchors specific critical behaviors, each of which reflects a different degree of performance effectiveness.
Organizational Behavior: Chapter 737 What is performance appraisal? Behaviorally anchored rating scales (BARS) — cont. – Provides specific behaviors that are useful for counseling and feedback. – May not be as superior as once thought. – The Behavioral Observation Scale (BOS) is a simpler variation of BARS.
Organizational Behavior: Chapter 738 What is performance appraisal? Management by objectives (MBO). – Subordinates work with their supervisor to establish specific task-related objectives. – MBO is the most individualized appraisal method. – MBO works well with counseling, provided the goals focus on important activities. – MBO is not highly subjective to rating errors.
Organizational Behavior: Chapter 739 What is performance appraisal? To be meaningful, an appraisal system must be: – Reliable — provide consistent results across time. – Valid — actually measure people on relevant job content. Measurement errors can threaten the reliability or validity of performance appraisals.
Organizational Behavior: Chapter 740 What is performance appraisal? Measurement errors in performance appraisal. – Halo errors. The rater evaluates the ratee on several different dimensions and gives a similar rating for each dimension. – Leniency errors. Raters tend to give everyone relatively high ratings.
Organizational Behavior: Chapter 741 What is performance appraisal? Measurement errors in performance appraisal — cont. – Strictness errors. Raters tend to give everyone relatively low ratings. – Central tendency errors. Raters lump everyone together around the average or middle.
Organizational Behavior: Chapter 742 What is performance appraisal? Measurement errors in performance appraisal — cont. – Low differentiation errors. Raters restrict themselves to a small part of the rating scale. Examples include leniency, strictness, and central tendency errors. – Recency errors. Raters allow recent events to exercise undue influence on ratings.
Organizational Behavior: Chapter 743 What is performance appraisal? Measurement errors in performance appraisal — cont. – Personal bias errors. Raters let personal biases, such as stereotypes, unduly influence the ratings.
Organizational Behavior: Chapter 744 What is performance appraisal? Rating errors can be reduced and performance appraisals improved by: – Training raters to understand the evaluation process and recognize errors. – Ensuring that raters observe ratees on an ongoing basis. – Not having the rater evaluate too many ratees. – Ensuring the clarity and adequacy of performance dimensions and standards. – Avoiding terms that have different meanings for different rates.
Organizational Behavior: Chapter 745 What is performance appraisal? Guidelines for ensuring the legality of performance appraisal systems. – Base appraisal on job requirements as reflected in performance standards. – Ensure that employees clearly understand the performance standards. – Use clearly defined dimensions. – Use behaviorally-based dimensions supported by observable evidence.
Organizational Behavior: Chapter 746 What is performance appraisal? Guidelines for ensuring the legality of performance appraisal systems — cont. – Avoid abstract trait names. – Ensure that scale anchors are brief and logically consistent. – Ensure that the system is valid and psychometrically sound. – Provide an appeal mechanism to handle appraisal disagreements.
Organizational Behavior: Chapter 747 What is performance appraisal? Group evaluation. – Group or team performance appraisal is consistent with: Self-managed teams. High performance organizations. – Frequently accompanied by a group-based compensation system.
Organizational Behavior: Chapter 748 What are rewards and reward systems? Types of rewards. – Extrinsic rewards. Positively valued work outcomes given by some person or source in the work setting. – Intrinsic rewards. Positively valued work outcomes received directly from task performance.
Organizational Behavior: Chapter 749 What are rewards and reward systems? Pay as an extrinsic reward. – Positive aspects of pay. Helps firms attract and retain capable workers. Helps satisfy and motivate workers. – Negative aspects of pay. Dissatisfaction with pay can lead to strikes, grievances, absenteeism, turnover, and poor physical and mental health.
Organizational Behavior: Chapter 750 What are rewards and reward systems? Pay as a source of motivation. – High job performance must be viewed as the path for achieving high pay. – Merit pay is a method for connecting performance and pay. – Merit pay makes pay contingent on job performance.
Organizational Behavior: Chapter 751 What are rewards and reward systems? To be effective, merit pay should: – Use realistic and accurate performance measures. – Create a strong linkage between high performance and high pay. – Discriminate between high and low performers in amount of pay. – Not be confused with cost-of-living adjustments.
Organizational Behavior: Chapter 752 What are rewards and reward systems? Creative pay practices. – Merit pay plans do not recognize employee interdependence, and are thus inconsistent with the demands of HPOs. – Pay practices should be consistent with: The demands of HPOs. The HR and overall organizational strategies.
Organizational Behavior: Chapter 753 What are rewards and reward systems? Types of creative pay practices. – Skill-based pay. – Gain-sharing plans. – Profit-sharing plans. – Employee stock ownership plans (ESOPs). – Lump-sum pay increases. – Flexible benefit plans.
Organizational Behavior: Chapter 754 What are rewards and reward systems? Skill-based pay. – Rewards people for acquiring and developing job-relevant skills. – Advantages. Employee cross-training. Fewer supervisors needed. – Disadvantages. Higher pay and training costs. Establishing appropriate monetary values for skills.
Organizational Behavior: Chapter 755 What are rewards and reward systems? Gain-sharing plans. – Workers share in enhanced earnings resulting from productivity gains. – Advantages. Increased worker motivation. Greater sense of personal responsibility. Encourages participation and teamwork.
Organizational Behavior: Chapter 756 What are rewards and reward systems? Profit-sharing plans. – Reward employees based on entire organization’s performance. – Not connected to productivity gains. – Often fund employee retirement plans. Considered to be a benefit rather than an incentive.
Organizational Behavior: Chapter 757 What are rewards and reward systems? Employee stock ownership plans (ESOPs). – Based on total organization’s performance. – ESOP options. Stock may be given to employees. Employees may purchase stock at a below-market price. – Advantage. Nontaxable to organization until redeemed by employees. – Disadvantage. Risk of stock investments.
Organizational Behavior: Chapter 758 What are rewards and reward systems? Lump-sum pay increases. – Individuals elect to receive a pay increase in one or more lump-sum distributions that increase the base salary. – Lump-sum payments — which differ from lump-sum increases — are one-time bonus payments that do not increase the base salary.
Organizational Behavior: Chapter 759 What are rewards and reward systems? Flexible benefit plans. – Fringe benefits are indirect incentives. – Plans accommodate individual differences to capitalize on motivational value of benefits. – Plans allow workers to select benefits according to their needs.