human resources

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

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**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