human resources

Performance management:

Performance management:

process employers use to make sure employees are working toward organisational goals.

Performance appraisal

regular review of an employee's job performance and contribution to a company. Companies use performance and contribution to a company.

Halo effect:

when a supervisor’s rating of a subordinate on one trait biases the rating of that person of other traits

Central tendency:

tendency to rate all employees the same way

Bias

tendency which allows individual differences such as race, age, gender, affect appraisal rating employees receive

On-the-job training

job rotation, coaching/understudy approach, action learning

Training need analysis

identify job performance skills needed, assess prospective trainees skills, develop objectives

Orientation

planned introduction of new employees to their jobs, coworkers, and the organisation.

Instruction design

produce the training program content, including workbooks, exercise, and activities

Training

work program that provides employees with specific knowledge and skills to facilitate and improve job performance in current roles

What are the compensation policy issues?

Pay for performance, pay for seniority, pay cycle, salary increases and promotions, overtime and shift pay, probationary pay, unpaid and paid leaves, paid holidays, salary compression, geographic costs, cost of living

What are the forms of equity?

External

fairness of pay against the external market.

• What the company is willing to pay for talent vs outside organisations

What are the forms of equity?

Internal

employees with similar positions or skill sets within a company are compensated in a similar way (salary or benefits).

What are the forms of equity?

Individual

Pay differentials among individuals who hold identical jobs in the same organisation. Seniority based pay

• employee compensation is determined by their longevity in the company is widely used

What are the forms of equity?

Procedural

Perceived fairness of the processes and procedures used to make decision regarding the allocation of pay

Discuss the steps in establishing pay rates

Salary survey

Formal or informal.

• Informal = online survey good for checking specific issues. Used to collect specific information

Discuss the steps in establishing pay rates

Job evaluation

systematic comparison done to determine the worth of one job relative to another

Job evaluation methods: ranking, job classification, point method, factor comparison

Discuss the steps in establishing pay rates

Group similar jobs into pay grades

pay grade comprised of jobs of approximately equal difficulty or importance as established by job evaluation

Discuss the steps in establishing pay rates

Price each pay grade

shows pay rates currently paid for jobs in each pay grade. Shows the relationship between values of the job and current average pay rate

Discuss the steps in establishing pay rates

Fine tune pay rates

flexibility in external job market rates, easier to move into higher pay grades, rewarding performance differences and seniority

What are the different types of financial payments?

1- Direct financial payments

wages, salaries, incentives, commissions, bonuses

What are the different types of financial payments?

2- indirect financial payments

Stock options, travel/meal/housing, Benefits - dental, insurance, medical, vacation, leaves, retirement, taxes

Discuss the performance appraisal method

1- Graphic rating scale

lists the traits required for the job and asks the source to rate the individual on each attribute

Discuss the performance appraisal method

2- Paired comparison method - (Compare Pairs)

Each employee is compared with another, Indicating which is the better employee of the pair

Discuss the performance appraisal method

3- Behaviourally anchored rating scale (BARS)

is a scale that assesses the performance of new employees or trainees based on well-defined behavioural patterns.

Discuss the performance appraisal method

4- Alternation ranking method

Ranking employees from best to worst

Discuss the performance appraisal method

5- Forced distribution method

ranks employees into predefined categories based on their relative performance.

Discuss the performance appraisal method

6. 360 appraisal

different parties analyse an employee's performance anonymously and provide one-on-one feedback later

What are the rating scale appraisal problems?

1. Unclear standards

An appraisal that is too open to interpretation

What are the rating scale appraisal problems?

2. cultural tendency

Tendency to rate all employees the same way

What are the rating scale appraisal problems?

3. Halo effect

Supervisor’s rating of a subordinate on one trait biases the rating of that person on other traits

What are the rating scale appraisal problems?

4. strictness/ leniency

Tendency to rate all subordinates either high or low

What are the rating scale appraisal problems?

5. bias

Allow individual differences such as age, rate, and gender to affect the appraisal ratings employees receive

How to avoid the performance appraisal problems?

1. Learn & understand potential problems, and the solutions for each

2. Use right appraisal tool

3. Train supervisors to reduce rating errors such as halo, leniency, and central tendency

4. Have raters compile positive and negative critical incidents as they occur

5. Be honest, adopt the right tone, train appraisers, get the data right, be objective

What is the employer’s role in career development?

Supervisor

Do the appraising, familiar with basic appraisal techniques, must understand and avoid problems that can cripple appraisals, know how to conduct appraisals fairly

What is the employer’s role in career development?

HR

Policy-maker and advisory role, provides assistance regarding the appraisal tool, prepares forms and procedures and insists that all departments use them, responsible for training supervisors to improve their appraisal skills