HR Final Exam Preparation PDF

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HR Final Exam Preparation Performance Management Performance management is the process through which managers ensure that employees’ activities and outputs contribute to the organization’s goals This process requires: - Knowing what activities and outputs are desired - Observing whether they occur - Providing feedback to help employees meet expectations Steps in the performance management process: 1. Define performance outcomes for company division and department 2. Develop employee goals, behavior, and actions to achieve outcomes 3. Provide support and ongoing performance discussions 4. Evaluate performance 5. Identify improvements needed 6. Provide consequences for performance results Purpose of performance management: Strategic purpose – effective performance management helps the organization achieve its business objectives Administrative purpose – ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs Developmental purpose – serves as a basis for developing employees’ knowledge and skills Measuring Performance: Making comparisons Simple ranking: requires managers to rank employees in their group from the highest performer to the poorest performer (Good to motivate to be better, bad for encouraging team work)

Forced distribution: assigns a certain percentage of employees to each category in a set of categories Paired comparison: compares each employee with each other employee to establish rankings

Measuring Performance: Rating individuals – Attributes

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Graphic Rating Scale: lists traits and provides a rating scale for each trait. Employer uses the scale to indicate extent to which an employee displays each trait (a table with performance dimensions such as knowledge, communication, managerial skills, etc being rated from 1 to 5) Mixed-Standard Scale: Uses several statements describing each trait to produce a final score for that trait (+/0/-) Measuring Performance: Rating individuals behavior Behaviorally anchored rating scale: method of performance measurement that rates behavior in terms of scale showing specific statements of behavior that describe different levels of performance Behavioral observation scale: a variation of BARS which uses all behaviors necessary for effective performance to rate performance task

*An employee’s performance measurement differs from job to job. For example, a car dealer’s performance is measured by the dollar amount of sales, the number of new customers, and customer satisfaction surveys.

Measuring Performance: Measuring results Management by Objectives (MBO): a system where people at each level of the organization set goals in a process that flows from top to bottom, so that all levels are contributing to the organization’s overall goals. These goals become the standards for evaluating each employee’s performance.

Types of performance measurement rating errors Contrast errors: rater compares an individual not against an objective standard but against other employees Distributional errors: rater tends to use only one part of a rating scale - Leniency: the reviewer rates everyone near the top - Strictness: the rater favors lower ranking - Central tendency: the rater puts everyone near the middle of the scale Rating bias: raters often let their opinion of one quality color their opinion of others - Halo error: when bias is in a favorable direction. This can mistakenly tell employees they don’t need to improve in any area - Horns error: when bias involves negative ratings. This can cause employees to feel frustrated and defensive 2

Giving performance feedback Feedback should be given right away like if you were a coach of a football team. It makes no sense to have feedbacks once a year. It is important to let the individual know what they are doing well and what areas they may need to work on (bring job description, time sheet, grading sheet, numbers (budgets, sales, upselling), comments from guests and coworkers) Scheduling performance feedback: - Performance feedback should be a regular, expected management activity - annual feedback is not enough - employees should receive feedback so often that they know what the manager will say during their annual performance review Preparing for a feedback session: - managers should be prepared for each formal feedback session - do it in an appropriate meeting place - meet in a setting that is neutral and free of distractions

6 ways to structure communication listen as well as talk

be honest Focus on goals prevent surprises

use specific, concrete examples

treat employees with respect

360 degree performance appraisal customers

Performance management that combines information from the employee’s managers, peers, subordinates, self and customers

top management

immediate superior

360 degree appraisal self

peers

subordinates

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Training and Development Training is an organization’s planned efforts to help employees acquire job-related knowledge, skills, abilities, and behaviors, with the goal of applying these on the job Training can benefit the organization when it is linked to organizational needs and when it motivates employees. The main reason for training is to increase knowledge Training most effectively addresses skill and ability deficiencies

Instructional design An effective training program is designed to teach skills and behaviors that will help the organization achieve its goals HR professionals approach training through instructional design Instructional design is a process of systematically developing training to meet specified needs

assess needs for training

ensure readiness for training

plan training program objectives trainers methods

implement training program

evaluate results of Training: training 1. assess needs for training (organization, person, task) 2. Ensure readiness for training (employee readiness characteristics, work environment) 3. Plan training program (objectives, trainers, methods) 4. Implement training program (should apply principles of learning) 5. Evaluate results (should look for transfer of training by measuring performance, assessment should evaluate training outcomes, should result in improvements in groups or organizational outcomes)

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Training methods

action learning classroom instructions

team training

audiovisual training

experiential programs

training methods computerbased training

behavior modeling

business games and case studies

on-the-job training simulations

Methods of training success: - Trainee satisfaction - Transfer of training - New skills, knowledge - Performance improvements - Return on investment /The most effective way to measure employee satisfaction with training is ____ and learning acquired is _____. a) Survey, pre-post test with control group b) Post-test, survey c) Cost-benefit analysis, pre-post test d) Interview managers, cost-benefit analysis

Orientation of a new employee Orientation – training designed to prepare employees to - Perform their jobs effectively - Learn about their organization - Establish work relationships

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Objective of job orientations is to familiarize new employees with the organization’s rules, policies and procedures:  Overview (history, mission, values)  Key policies and procedures  Compensations  Benefits and services  Safety and accident prevention  Employee and union relations  Physical facilities  Economic factors and customer relations, etc

Career Development Employee development is a combination of formal education, job experiences, relationships, and assessment of personality and abilities to help employees prepare for the future of their careers. Development is about preparing for change in the form of new jobs, new responsibilities, or new requirements. Training VS development

Focus Use of work experience Goal Participation

Training Current Low Preparation for current job required

Development Future High Preparation for changes Voluntary

Protean career: a career that frequently changes based on changes in the person’s interests, abilities, and values in the work environment To remain marketable, employees must continually develop new skills - Transferable skills - Employability 4 approaches to employee development -

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Interpersonal relationships - Employees can also develop skills and increase their knowledge about the organization and its customers by interacting with a more experienced member (mentor or coach) - Coaching: short (assist, challenge and encourage) - Mentoring: take a junior and make sure they develop in the right direction (junior wants to be like senior) Formal education (many companies operate training and development centers) - Workshops

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- Short courses - Lectures - Simulations - Business games - Experiential programs Assessment - Collecting information and providing feedback to employees about their behavior, communication style, or skills - Information for assessment may come from the employees, their peers, managers, and customers - Assessment tools - Myers-Briggs type indicator (MBTI) - Assessment centers - Benchmarks assessments - Performance appraisal - 360-degree feedback Job experiences - A combination of tasks, relationships, problems, demands and other features of an employee’s jobs - Most employee development occurs through job experiences - Through experiences (job assignments, relationships), managers learn how to handle common challenges and prove themselves

Challenges in career development -

Responsibility When is it too much? Diversity of work force

Development related challenges: -

Glass ceiling (circumstances resembling an invisible barrier that keep most women and minorities from attaining the top jobs in organization) Succession planning (process of identifying and tracking high-potential employees who will be able to fill top management positions) Dysfunctional managers (manager who is otherwise competent may engage in some behaviors that make him or her ineffective or even “toxic” – stifles ideas and drives away good employees

Employee Separation Employee separation is when an employee is no longer a part of an organization Turnover rate = the rate at which employees leave the company Costs associated with replacing employees: - Recruitment costs 7

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Selections costs Training costs Separation costs – severance pay, exit interview

Company Benefits of separation:  Without it there is low turnover rate, therefore less chance for promotion, innovations or new ideas  Reduced labor costs (reducing size of workforce)  Replacement of poor performers  Increased innovation  Greater diversity Voluntary separation: When an employee decides, for personal or professional reasons, to end the relationship with the employer (quit, retire) --- initiated by employee, avoidable or unavoidable Avoidable: not happy about the job  we can still keep them Unavoidable: retire, move to another city (something we can’t influence)

Involuntary separation: When an employer decided to terminate its relationship with an employee and the company --- initiated by employer Discharge: Poor fit between employee and the company (organization is tired of correcting behavior, must make sure discharge is supported and well documented) Layoff: Company changes structure or strategy (no other way to reduce labor costs)

*Discharge: try to correct the behavior (sexual harassment, poor performance) *Layoff: “not because you are bad but we need to let you go” (ms Amalia)

Organization should develop a standardized, systematic approach to discipline and discharge. These decisions should not be left solely to the discretion of individual managers or supervisors. Policies should be based on principles of justice and law. Policies should allow for various ways to intervene. Principles of Justice: Outcomes fairness: a judgement that the consequences given to employees are just (consistent outcomes, knowledge of outcomes, outcomes in proportion to behaviors, rules the company has, make sure the employees know about them)

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Procedural justice: a judgement that fair methods were used to determine the consequences an employee receives (consistent procedures, avoidance of bias, accurate information, way to correct mistakes, representation of all interests, ethical standards, consistent procedure (everyone has the same treatment), based on facts (not rumors)) Interactional justice: a judgement that the organization carries out its actions in a way that took the employee’s feelings into account (explanation of decision, respectful treatment, consideration, empathy, talk, take time, explain, respect) / A company whose earnings are very low has to reduce the amount given in raises to avoid laying off people. The amount of the raise for each employee is determined objectively based on their performance. An employee working for this company will most likely feel ___ and ___. A) High outcomes fairness, high interactional justice B) Low outcome fairness, high procedural justice C) Low interactional justice, high outcome fairness D) Low outcome fairness, low procedural justice

Legal Requirements Wrongful discharge: The discharge may not violate an implied agreement (employer had promised job security, the action is inconsistent with company rules) The discharge may not violate public policy (terminating the employee for refusing to do something illegal or unsafe) Discrimination: Employers must take discipline decisions without regard to a person’s sex, age, race, or other protected status Evenhanded, carefully documented discipline can avoid such claims Employees’ privacy: Employers need to ensure that the information they gather and use for discipline is relevant Privacy issues also concern the employer’s wish to search or monitor employees Employers must be careful in deciding who will see the information

Progressive discipline responsiveness: Unofficial spoken warning -> official written warning -> 2nd written warning plus threat of temporary suspension -> temporary suspension plus written notice that this is a last chance to improve -> termination The rules of behavior should cover disciplinary problems such as the following behaviors encountered in many organizations:  Tardiness (always late)  Absenteeism 9

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Unsafe work practices Poor quality or quantity of work Sexual harassment of coworkers Coming to work impaired by alcohol or drugs Theft of company property Cyberslacking (being on facebook instead of doing work for example)

Hot stove rule: take actions now not tomorrow, make sure you deal with all the problems on the stop (employee burns himself after a warning and doesn’t want to repeat it) Be careful what you tell people it can be used against you. Don’t promise something you cannot do on 100% (job security till retirement -> you cannot know it for sure) Guidelines to respond to misconduct: 1. Be clear about performance standards 2. Be consistent 3. Don’t ignore the problems behavior 4. Investigate complains ASAP 5. Record statements in writing, with signatures and dates 6. Focus on behaviors not personalities 7. Documentation should be clear and complete 8. Be honest Options to alternative dispute resolution: Open door policy: an organization’s policy of making managers available to hear complaints any time (people can come talk to you whenever and talk about their issues) Peer review: process for resolving disputes by taking them to a panel composed of representatives from the organizations at the same levels as the people in the dispute (representatives from different parts of the company come together to solve the problem) Mediation: nonbinding process in which a neutral party from outside the organization hears the case and tries to help the people in a conflict arrive at a settlement (third party coming in to negotiate between the parties disagreed (give recommendations)) Arbitration: binding process in which a professional arbitrator from outside the organization (lawyer or judge) hears the case and resolves it by making a decision (put another organization to negotiate between the parties in disagreement and make the decision for them) Implementing layof - Develop layoff criteria - Criteria for dismissal must be clear - Seniority and performance are most often used to determinate layoffs - Communicating to laid-off employees - Should tell in a face to face meeting - Should be told by supervisor 10

Best to do in the middle of the week (to make sure they know you are there to help them to find another job, help them to move) Maintaining security - Usher people out of the building - Try to reduce sabotage Reassuring survivors - Educate them about firm’s financial situation - Reaffirm that they are part of the team - Re-energize them -

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When you layoff you should terminate all the access to the data, close email (avoid any damage – stealing of info, sending aggressive emails)

Outplacement  Help employees find another job  Social responsibility is main reason companies do this  Emotional support (counseling, include family members)  Goal of outplacement: keep up the morale of those being laid off, reduce law suits, find comparable jobs ASAP, job search assistance (resume, interviewing skills, etc)

Employee Satisfaction Job withdrawal process A set of behaviors with which employees try to avoid the work situation physicalle, mentally or emotionally

personal disposition; tasks and roles; supervisors and coworkers; pay ans benefits

job withdrawal job dissatisfaction

behavior change physical job withdrawal pshycological job withdrawal

Causes of job dissatisfaction:  Personal disposition: negative affectivity, core self-evaluations  Tasks and roles: role, role ambiguity, role conflict, role overload  Supervisors and coworkers: negative behavior by managers, conflicts between employees  Pay and benefits: pay is an indicator of status, pay and benefits contribute to selfworth 11

Actions employees take when dissatisfied:  behavior changes  change the condition  whistle-blowing  bring a lawsuit  large complaints  physical job withdrawal  psychological withdrawal  decrease in job involvement  decrease in organizational commitment Job satisfaction: a pleasant feeling resulting from the perception that one’s job fulfills or allows for the fulfillment of one’s important job values  values  perceptions  ideas of what is important People will be satisfied with their jobs as long as they perceive that their jobs meet their important values Co-worker relationships can contribute to job satisfaction, and organizations therefore try to provide opportunities to build positive relationships

Increasing job satisfaction: - hiring employees predisposed to being satisfied, referring depressed employees for help - designing complex, meaningful jobs, establishing clear, appropriate roles - reinforcing shared values, encouraging social support, heling employees pursue goals - setting satisfactory pay levels, communicating pay structure and policies Monitoring job satisfaction: Employers can better retain employees if they are aware of satisfaction levels, so they can make changes if employees are dissatisfied Usual way to measure job satisfaction is to survey A systematic, ongoing program of employee surveys should be a part of the organization’s HR strategy to monitor trends and prevent voluntary turnover Exit interview: a meeting of a departing employee with t...