HR Exam

Orientation (Culture)

Long term socialization process between employee and employer

Training (Skills)

Short-term efforts to impart information and instructions related to the job

Employee Onboarding (Orientation)

• A procedure for providing new employees with basic background information about the firm and the job

• It is a long-term, continuous socialization process in which employee and employer expectations or obligations are considered

Socialization

The ongoing process of instilling in all employees the prevailing attitudes, standards, values, and patterns of behavior that are expected by the organization

Socialization Process

• Pre employment socialization

• Encounter

• Role management

• Socialization outcomes

Orientation

Helps to clarify the organization’s expectations of an employee regarding his or her job, thus helping to reduce the new employee’s first-day jitters and reality shock (also referred to as cognitive dissonance)

Purpose of Onboarding

• CULTURE

• Part of ongoing socialization process

• Helps reduce first day jitters and reality show

• Foundation for ongoing performance management

• Improved productivity

• Improved retention levels and reduced recruitment costs

Content of Orientation Programs

• Internal publications (handbooks, newsletters, company history)

• Facility tour and staff introductions

• Job-related documents and explanation of duties, responsibilities

• Expected training to be received

• Performance appraisal criteria

Responsibility for Orientation

HR Specialist

• Explains corporate information

• Follows up over time

\- Supervisor

• Explains nature of the job

• Introduction of colleagues, etc.

- Buddy or mentor

• Assists with day-to-day items

Evaluation of Orientation Programs

• Employee reaction: Interview or survey to evaluate usefulness, job performance

• Socialization effects: At regular intervals assess progress towards understanding norms

• Cost/benefit analysis: Compare costs of program (e.g. materials, time) to benefits (e.g. fewer errors, rate of productivity)

Training

• The process of teaching employees the basic skills/competencies that they need to perform their jobs

• Short-term, discrete efforts in which organizations impart information and instructions

• Part of organization’s strategic plan

• Considered investment in human capital

Training and Learning

• Training is essentially a learning process

• To train employees, therefore, it is useful to know something about how people learn

• Training effectiveness can be enhanced by identifying learning styles and personalizing the training accordingly

Negligent Training

It occurs when an employer fails to train adequately, and an employee subsequently harms a third party

Five Step Training Process

• Training Needs Analysis

• Instructional Design

• Validation

• Implementation

• Evaluation of Training

Task Analysis

• Identifying the broad competencies and specific skills required to perform job related tasks

• Break down job into tasks and skills

• Determine where each task and skill is best learned

Performance Analysis

Verify any performance deficiencies and determine whether they are best resolved through training or other means

Types of Training

• Programmed learning (e.g. present material, questions, answer, and feedback, etc.)

• Informal learning

• Traditional training (e.g., Classroom training and Blended learning)

• On-the-job (OJT) training

• Job instruction training (logical steps, e.g. task analysis slide)

Cognitive (emotional) dissonance:

The discrepancy between what the new employee expected from his or her new job and its realities

Career Planning

The deliberate process through which someone becomes aware of personal skills, interests, knowledge, motivations, and other characteristics

Career Development

The lifelong series of activities (such as workshops) that contribute to a person’s career exploration, establishment, success, and fulfillment

Occupational Orientation

The theory that there are six basic personal orientations that determine the sorts of careers to which people are drawn

Vocational Preference Test (VPT)

Realistic, Investigative, Social, Conventional, Enterprising, and Artistic

Career Anchors

1\. Technical/functional

2\. Managerial competence

3\. Creativity

4. Autonomy and independent

5\. Security

6\. Service/dedication

7\. Pure challenge

8\. Lifestyle

The Individual

• Individuals must accept responsibility for care

• requires:

– Self-motivation

– Independent learning

– Effective time and money management

– Self-promotion

• Networking is the foundation of effective career management

Networking

• An organized process whereby the individual arranges and conducts a series of face-to-face meetings with his or her colleagues and contacts, plus individuals that they recommend

• It does not involve asking for a job

• It is a mutual information and knowledge sharing process

The Employer

• Provide career-oriented training and development opportunities

• Offer career information and programs

• Offer a variety of career options

Management Development

Any attempt to improve current or future management performance by imparting knowledge, changing attitudes, or increasing skills

Importance of Management Development

• Baby Boomers entering retirement

• Increased demand for next generation to assume senior management

• Management development

– Attracts talent

– Helps organization achieve employer-of-choice status

Importance of Management Development

• Developmental job rotation

• Coaching/understudy approach

• Action learning

• Outside seminars

Importance of Management Development

• College/university-related programs

• In-house development centers (e.g., McDonald’s)

• Behaviour modelling

• Mentoring (including reverse mentoring program)

In-house development center

A company-based method for exposing prospective managers to realistic exercises in order to develop improved management skills

Behaviour Modelling

• A training technique in which trainees are first shown good management techniques, then ask to play roles in a simulated situation, and finally given feedback regarding their performance

• Modeling → Role playing → Social reinforcement → Transfer of training

Performance Management

• Everything related to improving employee performance, productivity, and effectiveness.

• Includes goal setting, pay for performance, training and development, career management, and disciplinary action

• MOST of the time, companies mean evaluating employee performance and providing rewards/punishment based on performance.

• Prepare employees by telling them the standards in advance (Job description)

Performance Management Process

Step 1. Define performance expectations

Step 2. Provide ongoing feedback and coaching

Step 3. Conduct performance appraisal and evaluation discussions

Step 4. Determine performances/consequences

Step 5. Conduct development and career opportunity discussions

Task Performance

An individual’s direct contribution to their job related processes

Contextual Performance

• Indirect contribution to the organization’s social responsibility values

• Such behaviors contribute to organizational effectiveness beyond those specified for the job (e.g.,extra-role behavior)

Providing Ongoing Coaching and Feedback

• Important to have open two-way communications

• Employee responsible for monitoring own performance, and asking for help

• Manager responsible for communicating changing strategies and objectives if applicable (e.g., changing priorities)

Formal Appraisal Methods

• Graphic Rating Scale

• Alternation Ranking Method

• Paired Comparison Method

• Forced Distribution Method

• Critical Incident Method

• Narrative Forms

• Behaviorally Anchored Rating Scales (BARS)

• Management by Objectives (MBO)

Graphic Rating Scale

• A scale that lists a number of traits and a range of performance for each

• The employee is given a rating that best describes the level of performance for each trait

• Simplest and most popular method

Paired Comparison Method

• For each trait, list all possible pairs of employees

• For each pair, indicate “+” for the higher ranked employee, “-” for the lower ranked

• Rank employees by trait based on number of “+” scores

Forced Distribution Method

• Predetermined percentages of rates are placed in various performance categories

• General Electric (GE)

• Example

– 15 percent high performers

– 20 percent high-average performers

– 30 percent average performers

– 20 percent low-average performers

– 15 percent low performers

Behaviorally Anchored Rating Scales (BARS)

• An appraisal method that aims to combine the benefits of narratives, critical incidents, and quantified ratings by anchoring a quantified scale with a specific narrative examples of good and poor performs

• More detailed descriptions of behaviour than graphic

• Have both pros and cons

• Validity and reliability \n • Rating scale problems

• Unclear performance standards

• Halo effect

• Central tendency

• Leniency or strictness

• Appraisal bias

• Recency effect

• Similar-to-me bias

Central Tendency

A tendency to rate all employees in the middle of the scale

Strictness/Leniency

The problem that occurs when a supervisor has a tendency to rate all employees either low or high

Recency Effect

The rating error that occurs when ratings are based on employee’s most recent performance rather than on performance throughout the appraisal period

Compensation

Refers to all forms of financial returns and tangible services and benefits employees receive as part of an employment relationship

Direct Financial Payments

Wages, salaries, incentives, commissions, and bonuses

Indirect Financial Payments

Financial benefits like employer, paid insurance and vacations

Total Rewards

1\. Compensation

2\. Benefits

3\. Work-life programs

4\. Performance and Recognition

5\. Development and career opportunities

Aligning Total Rewards with Strategy

• The compensation plan should first advance the firm’s strategic aims—management should produce an aligned reward strategy.

• This means creating a compensation package (including wages, incentives, and benefits) that produces the employee behaviours the firm needs to achieve its competitive strategy

Equity Theory of Motivation

• A theory proposes that people are motivated to maintain a balance between what they perceive as their contribution and their rewards.

• People evaluate the ratio of inputs they bring to a job (ability, experience, effort, etc.) to the outputs they receive (pay, promotions, etc.)

• Then, people refer to others’ pay rate to assess equity vs. inequity

• If they perceive inequity or imbalance in this ratio, they tend to be less motivated

External Equity

Refers to how a job’s pay rate in one company compares to the job’s pay rate in other companies

Internal Equity

Refers to how the job’s pay rate is when compared to other jobs within the same company (e.g., sales manager’s pay vs. production manager’s salary)

Individual Equity

Refers to the fairness of an individual’s pay as compared with what his/her co-coworkers are earning for the same/similar jobs

Procedural Equity

Refers to the perceived fairness of the process/procedures used to make decisions regarding the allocation of pay

Establishing Pay Rates

Stage 1: Job Evaluation

Stage 2: Conduct wage/salary survey

Stage 3: Combine Job Evaluation and Salary Survey to Determine Pay

Stage 1. Preparation for Job Evaluation

A systematic comparison to determine relative worth of jobs within a firm

Benchmark Job

Critical to operations or commonly found in other organizations, can compare to a job in other companies

Compensable Factors

Fundamental, compensable element of a job (I.e., Things we pay you for)

Classification/Grading Method (Public Sector)

• Categorizes jobs into groups (e.g., Officer level 1)

• Grade/group description: outlines level of compensable factors required by each job

Point Method (Private Sector)

• Identify compensable factors

• Determine the degree to which each factor is present in each job

Stage 2. Conduct a Wage/Salary Survey

• Aimed at determining prevailing wage rates

– Determine rates for benchmark jobs

– Determine market rates for jobs

– Collect data on benefits, recognition programs, etc.

• Informal surveys good for easily recognized jobs

• Formal surveys are most comprehensive

Wage curve

A graphic description of the relationship between the value of the job and the average wage paid for this job (example follows)

Pay Ranges

A series of steps or levels within a pay grade, usually based on years of service

Broadbanding

Reducing the number of salary grades and ranges into just a few wide levels or “bands”, each of which then contains a relatively wide range of jobs and salary levels

Advantages of Broadbanding

• Greater flexibility in employee compensation

• Can assign more job duties, give more responsibility without changing classification

Pay Equity

• Male vs. Female: Wage gap has narrowed but remains at 30%

• Gap attributed to systemic discrimination

• Aim is to provide equal pay to male and female-dominated job classes of equal value

• Must ensure no gender bias in job evaluation

• Long-term solution is to eliminate male and female-dominated jobs

Conflict

• Disagreement among parties. When people, groups, or organizations disagree over significant issues, conflict is often the result.

• More technically, it is defined as a process that begins when one party perceives that another party has negatively affected, or is about to negatively affect, something that the first party cares about

Functional Conflict

Supports the goals of the group and improves its performance

Dysfunctional Conflict

Hinders group performance

Relationship

Involves disagreements based on personalities and issues that are not directly related to work

Task

Involves disagreements about the work that is being done in a group

Process

Centers on task strategy and delegation of duties and resources

1) Relationship conflict

• Disagreements based on personal/social issues unrelated to work

• In general, it includes tension, animosity, and annoyance among people.

2) Task conflict

• Disagreements about the work being done

• It exists when there are disagreements among teammates regarding the contents of the task, different perspectives, ideas, and opinions

• It may also generate tension, antagonism, and unhappiness

3) Process conflict

Disagreements about task strategy and the delegation of duties and resources

Research Findings

Empirical evidence has supported the negative relationship between conflict and team performance, productivity, and satisfaction

Conflict Resolution Approaches

Two Dimensions:

• Cooperativeness: Concern for other

• The degree to which one party attempts to satisfy the other party’s concerns

• Assertiveness: Concern for self

• The degree to which one party attempts to satisfy his or her own concerns

\#1 Avoiding

• A conflict management style characterized by low assertiveness (low concern for self) of one’s own interests and low cooperation (low concern for others) with the other party

– Short-term stress reduction, but does not really change the situation

• Most effective when:

– The issue is trivial

– Information is lacking

– People need to cool down

– The opponent is very powerful and hostile

\#2. Accommodating

• A conflict management style in which one cooperates with the other party, while not asserting one’s own interests

• Low assertiveness (low concern for self) of one’s own interests and high cooperation (high concern for others) with the other part

• Most effective when :

– You are wrong

– The issue is more important to the other party

– You want to build good will

\#3 Competing

• A conflict management style that maximizes assertiveness and minimizes cooperation

• Most effective when:

– You have a lot of power

– You are sure of your facts

– The situation is truly win-lose

– You will not have to interact with the other party in the future

\#4 Collaborating

• A conflict management style that maximizes both assertiveness and cooperation

– Is an attempt to secure an integrative agreement that fully satisfies the interests of both parties (a win-win resolution)

– Although it takes time and practice to develop, it frequently enhances productivity and achievement

• Works best when :

– Conflict is not intense

– Each party has information that is useful to the other

\#5 Compromising

• A conflict management style that combines intermediate levels of assertiveness and cooperation

– Does not result in the most creative response to conflict

– Satisficing versus maximizing

• Works best when :

– Conflict stems from scarce resources

– Other strategies fail

BATNA (Best Alternative To a Negotiated Agreement)

Determines the lowest value acceptable to you for a negotiated agreement

• Power in a negotiation comes from the ability to walk away from the negotiation. Therefore, the party with best BATNA is the more powerful party in the negotiation.

• Developing your BATNA not only enables you to determine what is a minimally acceptable agreement, it will probably raise that minimum

Negotiation Concepts

Target point: (your ideal outcome)

Resistance point (RP): The point beyond which you will not accept a deal and will turn to your BATNA.

Bargaining zone: The range between the recruiter's high and the candidate's low salaries.

Negotiation Situations

Distributive (one issue)

• Buying a house

• Competitive or Win-lose

• Maximize own gains

• Fixed pie

\
Integrative (multi-issues)

• Win/win

• Maximize joint gains

• Expandable pie

Distributive Bargaining

• Negotiation that seeks to divide a fixed amount of resources

• One-issue negotiations become competitive situations

– If one party wins, the other loses

– Examples are negotiating the sale of a house, a car, or a company

– Good negotiators turn what appear to be one issue situations into multiple issue situation

• Not just a particular type of negotiation: it is potentially an element of every negotiation

– Even in integrative situations, the time comes when one needs to apportion the benefits (or the costs)

Integrative Bargaining

• In integrative bargaining, there is more than one issues

• The parties have different preferences across bargaining issues.

• Most importantly, understand your opponent’s needs and goals through thorough communication

• The best way to create joint value is by being open and straightforward about the parties’ preferences and the intensity thereof

• Value is created by generating options and by exploiting creatively various differences among the parties

• Create value by expanding the pie and then claim value

Distributive Negotiation

• Generally single issue

• Generally about money

• Win-lose situation

• Fixed pie

• Mostly applied to a short-term relationship

Integrative Negotiation

• Possibly multiple issues

• Trade off among issues are possible

• Win-win situation

• Can expand the pie through mutual agreement/beneficial trade-offs

• Established based mostly on long-term relationship

Fixed Pay

• Compensation that is independent of the performance level of individual, group, or organization

• Includes base pay and allowances that need for income stability

Variable Pay

• Any plan that ties pay to productivity or profitability

• May be in addition to base pay

• The fundamental premise of variable pay is that top performers must get top pay to secure their commitment to organization

Money and Motivation Theories

1\. Frederick Herzberg: Two factor theory

2\. Victor Vroom: Expectancy theory

3\. Maslow’s Hierarchy of Needs Theory

Herzberg’s Two-Factor Theory

• Also called motivation-hygiene theory

• Hygiene factor (level of dissatisfaction) and Motivation factor (level of satisfaction)

• The opposite of satisfaction is NOT dissatisfaction, they are two separate ideas

• Fredrick Herzberg argued that people have (1) a desire to avoid discomfort, and (2) a willingness to \\n pursue self-growth and accomplishment.

Herzberg’s Two-Factor Theory Satisfied or not

• Quality of supervision

**• Pay**

• Company policy

• Physical working conditions

• Relationships

• Job security

\
• Promotional opportunities

• Opportunities for personal growth

• Work itself

• Responsibility

• Achievement

Maslow’s Hierarchy of Needs Theory

• Certain fundamental human needs must be met in a hierarchical order to facilitate motivation

• A five-level hierarchical need theory of motivation specifies that the lowest-level unsatisfied need has the greatest motivating potential.

• Self-Actualization

• Esteem

• Social

• Safety

• Physiological

Proposition 1 Specific human needs cluster into 5 main need categories that exist in a hierarchy.

Proposition 2 When needs at a particular level of the hierarchy are satisfied, the individual turns his or her attention to the next higher level.

Therefore, managers should understand what level of the hierarchy employees are currently on

Victor Vroom’s Expectancy Theory

• Suggested by Victor Vroom

• The strength of a tendency to act in a certain way is dependent on the strength of the the expectation of a given outcome and its attractiveness.

• For example, employees are willing to work long and hard hours if they know that they will be rewarded through promotion, recognition or pay in response to their hard work. They also assess the attractiveness of those rewards

• Motivation is based on individuals’ evaluation of three key relationships:

1. Effort-Performance: perceived probability that exerting effort leads to successful performance

2. Performance-Reward: the belief thatsuccessful performance leads to desired outcome

3. Rewards-Personal Goals: the rewards satisfy an individual’s personal goals (or needs)

Individual Effort, Individual Performance, Organziational Rewards, and Personal Goals

Expectancy x Instrumentality x Valance

Types of Incentive Plans

• Incentives for all employees (organization-wide incentive system)

• Incentives for operations employees

• Teams and group incentives

• Senior managers and executives

• Salespeople

Merit Pay or Merit Raise

• Any salary increase awarded to an employee based on his or her individual performance

• Usually an ongoing increase to base pay (not like one-time payment – bonus)

• Link to performance acts as motivator

• Success depends on validity of performance appraisal system