The Teaser... Fundamenta of Human Resource Management Part No. 1/2

1: Managing Human Resources

2: Trends in Human Resource Management?

3: Providing Equal Employment Opportunity and a Safe Workplace

4: Analyzing Work and Designing Jobs

5: Planning for and Recruiting Human Resources

6: Selecting Employees and Placing Them in Jobs

7: Training Employees

8: Managing Employees’ Performance

9: Developing Employees for Future Success

10: Separating and Retaining Employees

11: Establishing a Pay Structure

12: Recognizing Employee Contributions with Pay

13: Providing Employee Benefits

14: Collective Bargaining and Labor Relations

15: Managing Human Resources Globally?

16: Creating and Maintaining High-Performance Organization

CHAPTER No. 1

Managing Human Resources

*Definition of human resource management, and explanation of how HRM contributes to an organization’s performance.

Human resource management consists of an organization’s “people practices”—the policies, practices, and systems that influence employees’ behavior, attitudes, and performance.

HRM influences who works for the organization and how those people work.

These human resources, if well managed, have the potential to be a source of sustainable competitive advantage, contributing to basic objectives such as quality, profits, and customer satisfaction.

*Identification of the responsibilities of human resource departments.

By carrying out HR activities or supporting line management, HR departments have the responsibility for a variety of functions related to acquiring and managing employees.

The HRM process begins with analyzing and designing jobs, then recruiting and selecting employees to fill those jobs.

Training and development equip employees to carry out their present jobs and follow a career path in the organization.

Performance management ensures that employees’ activities and outputs match the organization’s goals.

Human resource departments also plan and administer the organization’s pay and benefits. They carry out activities in support of employee relations, such as communications programs and collective bargaining.

Conducting all these activities involves the establishment and administration of personnel policies. Management also depends on human resource professionals for help in ensuring compliance with labor laws, as well as for support for the organization’s strategy—for example, human resource planning and change management.

*Summary of the types of skills needed for human resource management.

Human resource management requires substantial human relations skills, including skills in communicating, negotiating, and team development.

Human resource professionals also need decision-making skills based on knowledge of the HR field as well as the organization’s line of business.

Leadership skills are necessary, especially for managing conflict and change.

Technical skills of human resource professionals include knowledge of current techniques, applicable laws, and computer systems.

*Explanation of the role of supervisors in human resource management.

Although many organizations have human resource departments, non-HR managers must be familiar with the basics of HRM and their own role with regard to managing human resources. Supervisors typically have responsibilities related to all the HR functions.

Supervisors help analyze work, interview job candidates, participate in the selection decisions, provide training, conduct performance appraisals, and recommend pay increases.

On a day-to-day basis, supervisors represent the company to their employees, so they also play an important role in employee relations.

*Discussion on ethical issues in human resource management.

Like all managers and employees, HR professionals should make decisions consistent with sound ethical principles. Their decisions should result in the greatest good for the largest number of people; respect basic rights of privacy, due process, consent, and free speech; and treat employees and customers equitably and fairly.

Some areas in which ethical issues arise include concerns about employee privacy, protection of employee safety, and fairness in employment practices (for example, avoiding discrimination).

*Description of typical careers in human resource management.

Careers in human resource management may involve specialized work in fields such as recruiting, training, or labor relations.

HR professionals may also be generalists, performing the full range of HR activities described in this chapter.

People in these positions usually have a college degree in business or the social sciences.

Human resource management means enhancing communication with employees and concern for their well-being, but it also involves a great deal of paperwork and a variety of non-people skills, as well as knowledge of business and laws.

CHAPTER No. 2

Trends in Human Resource Management?

*Description of trends in the labor force composition and how they affect human resource management.

An organization’s internal labor force comes from its external labor market—individuals who are actively seeking employment.

In the United States, this labor market is aging and becoming more racially and ethnically diverse. The share of women in the U.S. workforce has grown to nearly half of the total.

To compete for talent, organizations must be flexible enough to meet the needs of older workers, possibly redesigning jobs. Organizations must recruit from a diverse population, establish bias-free HR systems, and help employees understand and appreciate cultural differences.

Organizations also need employees with skills in decision making, customer service, and teamwork, as well as technical skills.

The competition for such talent is intense.

Organizations facing a skills shortage often hire employees who lack certain skills, then train them for their jobs.

*Summary of areas in which human resource management can support the goal of creating a high-performance work system.

HRM can help organizations find and keep the best possible fit between their social system and technical system.

Organizations need employees with broad skills and strong motivation.

Recruiting and selection decisions are especially important for organizations that rely on knowledge workers.

Job design and appropriate systems for assessment and rewards have a central role in supporting employee empowerment and teamwork.

*Definition of employee empowerment, and explanation of its role in the modern organization.

Employee empowerment means giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service.

The organization holds employees accountable for products and services, and in exchange, the employees share in the rewards (or losses) that result.

Selection decisions should provide to the organization people who have the necessary decision-making and interpersonal skills.

HRM must design jobs to give employees latitude for decision making and train employees to handle their broad responsibilities.

Feedback and rewards must be appropriate for the work of empowered employees.

HRM can also play a role in giving employees access to the information they need.

*Identification of ways HR professionals can support organizational strategies for quality, growth, and efficiency.

HR professionals should be familiar with the organization’s strategy and may even play a role in developing the strategy.

Specific HR practices vary according to the type of strategy.

Job design is essential for empowering employees to practice total quality management.

In organizations planning major changes such as a merger or acquisition, downsizing, or reengineering, HRM must provide leadership for managing the change in a way that includes skillful employee relations and meaningful rewards.

HR professionals can bring “people issues” to the attention of the managers leading these changes. They can provide training in conflict-resolution skills, as well as knowledge of the other organization involved in a merger or acquisition.

HR professionals also must resolve differences between the companies’ HR systems, such as benefits packages and performance appraisals.

For a downsizing, the HR department can help to develop voluntary programs to reduce the workforce or can help identify the least valuable employees to lay off.

Employee relations can help maintain the morale of employees who remain after a downsizing.

In reengineering, the HR department can lead in communicating with employees and providing training. It will also have to prepare new approaches for recruiting and appraising employees that are better suited to the reengineered jobs.

Outsourcing presents similar issues related to job design and employee selection.

*Summary of ways in which human resource management can support organizations expanding internationally.

Organizations with international operations hire employees in foreign countries where they operate, so they need knowledge of differences in culture and business practices.

Even small businesses discover that qualified candidates include immigrants because they account for a significant and growing share of the U.S. labor market.

HRM needs to understand and train employees to deal with differences in cultures.

HRM also must be able to help organizations select and prepare employees for overseas assignments.

To support efficiency and growth, HR staff can prepare companies for offshoring, in which operations are moved to lower-wage countries.

HR experts can help organizations determine whether workers in offshore locations can provide

the same or better skills, how offshoring will affect motivation and recruitment of employees needed in the United States, and whether managers are prepared to manage offshore employees.

*Discussion on how technological developments are affecting human resource management.

Information systems have become a tool for more HR professionals, and often these systems are provided through the Internet.

The widespread use of the Internet includes HRM applications.

Organizations search for talent globally using online job postings and by screening candidates online.

Organizations’ Web sites feature information directed toward potential employees.

Employees may receive training online.

At many companies, online information sharing enables employee self-service for many HR needs, from application forms to training modules to information about the details of company policies and benefits.

Organizations can now structure work that involves collaboration among employees at different times and places.

In such situations, HR professionals must ensure that communications remain effective enough to detect and correct problems when they arise.

*Explanation on how the nature of the employment relationship is changing.

The employment relationship takes the form of a “psychological contract” that describes what employees and employers expect from the employment relationship. It includes unspoken expectations that are widely held. In the traditional version, organizations expected their employees to contribute time, effort, skills, abilities, and loyalty in exchange for job security and opportunities for promotion.

Today, modern organizations’ needs are constantly changing, so organizations are requiring top performance and longer work hours but cannot provide job security. Instead, employees are looking for flexible work schedules, comfortable working conditions, greater autonomy, opportunities for training and development, and performance-related financial incentives.

For HRM, the changes require planning for flexible staffing levels.

*Discussion on how the need for flexibility affects human resource management.

Organizations seek flexibility in staffing levels through alternatives to the traditional employment relationship.

They may use outsourcing as well as temporary and contract workers.

The use of such workers can affect job design and also the motivation of the organization’s permanent employees.

Organizations also may seek flexible work schedules, including shortened work weeks. They may offer flexible schedules as a way for employees to adjust work hours to meet personal and family needs.

Organizations also may move employees to different jobs to meet changes in demand.

CHAPTER No. 3

Providing Equal Employment Opportunity and a Safe Workplace

*Explanation of how the three branches of government regulate human resource management.

The legislative branch develops laws such as those governing equal employment opportunity and worker safety and health.

The executive branch establishes agencies such as the Equal Employment Opportunity Commission and Occupational Safety and Health Administration to enforce the laws by publishing regulations, filing lawsuits, and performing other activities.

The president may also issue executive orders, such as requirements for federal contractors. The judicial branch hears cases related to employment law and interprets the law.?

*Summary of the major federal laws requiring equal employment opportunity.

The Civil Rights Acts of 1866 and 1871 grant all persons equal property rights, contract rights, and the right to sue in federal court if they have been deprived of civil rights.

Equal Pay Act of 1963 requires equal pay for men and women who are doing work that is equal in terms of skill, effort, responsibility, and working conditions.

Title VII of the Civil Rights Act of 1964 prohibits employment discrimination on the basis of race, color, religion, sex, or national origin.

The Age Discrimination in Employment Act prohibits employment discrimination against persons older than 40.

The Vocational Rehabilitation Act of 1973 requires that federal contractors engage in affirmative action in the employment of persons with disabilities.

The Vietnam Era Veteran’s Readjustment Act of 1974 requires affirmative action in the employment of veterans who served during the Vietnam War.

The Pregnancy Discrimination Act of 1978 treats discrimination based on pregnancy-related conditions as illegal sex discrimination.

The Americans with Disabilities Act requires reasonable accommodations?for qualified workers with disabilities. The Civil Rights Act of 1991 provides for compensatory and punitive damages in cases of discrimination.

The Uniformed Services Employment and Reemployment Rights Act of 1994 requires that employers reemploy service members who left jobs to fulfill military duties.

Under the Genetic Information Nondiscrimination Act (GINA) of 2008, employers may not use genetic information in making decisions related to the terms, conditions, or privileges of employment.??

*Identification of the federal agencies that enforce equal employment opportunity, and describe the role of each.

The Equal Employment Opportunity Commission is responsible for enforcing most of the EEO laws, including Title VII and the Americans with Disabilities Act.

It investigates and resolves complaints, gathers information, and issues guidelines.

The Office of Federal Contract Compliance Procedures is responsible for enforcing executive orders that call for affirmative action by companies that do business with the federal government.

It monitors affirmative-action plans and takes action against companies that fail to comply.?

*Description of the ways employers can avoid illegal discrimination and provide reasonable accommodation.

Employers can avoid discrimination by avoiding disparate treatment of job applicants and employees, as well as policies that result in disparate impact.

Companies can develop and enforce an EEO policy coupled with policies and practices that demonstrate a high value placed on diversity. Affirmative action may correct past discrimination, but quota-based activities can result in charges of reverse discrimination.

To provide reasonable accommodation, companies should recognize needs based on individuals’?religion or disabilities.

Employees may need to make such accommodations as adjusting schedules or dress codes, making the workplace more accessible, or restructuring jobs.?

*Definition sexual harassment, and tell how employers can eliminate or minimize it.

Sexual harassment is unwelcome sexual advances and related behavior that makes submitting to the conduct a term of employment or the basis for employment decisions or that interferes with an individual’s work performance or creates a work environment that is intimidating, hostile, or offensive.

Organizations can prevent sexual harassment by developing a policy that defines and forbids it, training employees to recognize and avoid this behavior, and providing a means for employees to complain and be protected.?

*Explanation of employers’ duties under the Occupational Safety and Health Act.

Under the Occupational Safety and Health Act, employers have a general duty to provide employees a place of employment free from recognized safety and health hazards. They must inform employees about?hazardous substances, maintain and post records of accidents and illnesses, and comply with NIOSH standards about specific occupational hazards.?

*Describe the role of the Occupational Safety and Health Administration.

The Occupational Safety and Health Administration publishes regulations and conducts inspections. If OSHA finds violations, it discusses them with the employer and monitors the employer’s response in correcting the violation.

* Discussion of ways employers promote worker safety and health.

Besides complying with OSHA regulations, employers often establish safety awareness programs designed to instill an emphasis on safety. They may identify and communicate hazards through the job hazard analysis technique or the technic of operations review. They may adapt communications and training to the needs of different employees, such as differences in experience levels or cultural differences from one country to another. Employers may also establish incentive programs to reward safe behavior.?

CHAPTER No. 4

Analyzing Work and Designing Jobs

*Summary of the elements of workflow analysis.

The analysis identifies the amount and quality of a work unit’s outputs, which may be products, parts or products, or services.

Next, the analyst determines the work processes required to produce these outputs, breaking down tasks into those performed by each person in the work unit.

Finally, the workflow analysis identifies the inputs used to carry out the processes and produce the outputs.?

*Description of how the workflow is related to an organization’s structure.

Within an organization, units and individuals must cooperate to create outputs, and the organization’s structure brings people together for this purpose.

The structure may be centralized or decentralized, and people may be grouped according to function or into divisions focusing on particular products or customer groups.

A functional structure is most appropriate for people who perform highly specialized jobs and hold relatively little authority.

Employee empowerment and teamwork succeed best in a divisional structure.

Because of these links between structure and types of jobs, considering such issues improves the success of job design.?

*Definition of the elements of job analysis, and discuss their significance for human resource management.

Job analysis is the process of getting detailed information about jobs. It includes the preparation of job descriptions and job specifications.

A job description lists the tasks, duties, and responsibilities of a job.

Job specifications look at the qualities needed in a person performing the job.

They list the knowledge, skills, abilities, and other characteristics that are required for the successful performance of a job.

Job analysis provides a foundation for carrying out many HRM responsibilities, including work redesign, human resource planning, employee selection and training, performance appraisal, career planning, and job evaluation to determine the pay scale.

*Tell how to obtain information for a job analysis.

Information for analyzing an existing job often comes from incumbents and their supervisors.

The Labor Department publishes general background information about jobs in the Dictionary of Occupational Titles and Occupational Information Network (O*NET).

Job analysts, employees, and managers may complete a Position Analysis Questionnaire or fill out a survey for the Fleishman Job Analysis System.

*Summary of recent trends in job analysis.

Because today’s workplace requires a high degree of adaptability, job tasks and requirements are?subject to constant change. For example, as some organizations downsize, they are defining jobs more broadly, with less supervision of people in those positions. Organizations are also adopting project-based structures and teamwork, which also require flexibility and the ability to handle broad responsibilities.?

*Description of methods for designing a job so that it can be done efficiently.

The basic technique for designing efficient jobs is industrial engineering, which looks for the simplest way to structure work to maximize efficiency.

Through methods such as time-and-motion studies, the industrial engineer creates jobs that are relatively simple and typically repetitive.

These jobs may bore workers because they are so simple.?

*Identification of approaches to designing a job to make it motivating.

According to the Job Characteristics Model, jobs are more motivating if they have greater skill variety, task identity, task significance, autonomy, and feedback about performance effectiveness.

Ways to create such jobs include job enlargement (through job extension or job rotation) and job enrichment.

In addition, self-managing work teams offer greater skill variety and task identity.

Flexible work schedules and telework offer greater autonomy.?

*Explanation of how organizations apply ergonomics to design safe jobs.

The goal of ergonomics is to minimize physical strain on the worker by structuring the physical work environment around the way the human body works.

The ergonomic design may involve modifying equipment to reduce the physical demands of performing certain jobs or redesigning the jobs themselves to reduce strain.

The ergonomic design may target work practices associated with injuries.?

*Discussion of how organizations can plan for the mental demands of a job.

Employers may seek to reduce mental as well as physical strain. The job design may limit the amount of information and memorization involved.

Adequate lighting, easy-to-read gauges and displays, simple-to-operate equipment, and clear instructions also can minimize mental strain.

Computer software can simplify jobs—for example, by performing calculations or filtering out spam from important e-mail.

Finally, organizations can select employees with the necessary abilities to handle a job’s mental demands.?

CHAPTER No. 5

Planning for and Recruiting Human Resource

*Discussion on how to plan for human resources needed to carry out the organization’s strategy.

The first step in human resource planning is personnel forecasting. Through trend analysis and good judgment, the planner tries to determine the supply of and demand for various human resources.

Based on whether a surplus or a shortage is expected, the planner sets goals and creates a strategy for achieving those goals.

The organization then implements its HR strategy and evaluates the results.

*Determination of the labor demand for workers in various job categories.

The planner can look at leading indicators, assuming trends will continue in the future. Multiple regression can convert several leading indicators into a single prediction of labor needs.

Analysis of a transitional matrix can help the planner identify which job categories can be filled internally and where high turnover is likely.?

*Summary of the advantages and disadvantages of ways to eliminate a labor surplus and avoid a labor shortage.

To reduce a surplus, downsizing, pay reductions, and demotions deliver fast results but at a high cost in human suffering that may hurt surviving employees’ motivation and future recruiting.

Also, the organization may lose some of its best employees.

Transferring employees and requiring them to share work are also fast methods and the consequences in human suffering are less severe.

A hiring freeze or natural attrition is slow to take effect but avoids the pain of layoffs.

Early-retirement packages may, unfortunately, induce the best employees to leave and may be slow to implement; however, they, too, are less painful than layoffs.

Retraining can improve the organization’s overall pool of human resources and maintain high morale, but it is relatively slow and costly.?

To avoid a labor shortage, requiring overtime is the easiest and fastest strategy, which can easily be changed if conditions change. However, overtime may exhaust workers and can hurt morale. Using temporary employees and outsourcing do not build an in-house pool of talent, but by these means, staffing levels can be quickly and easily modified.

Transferring and retraining employees require the investment of time and money, but can enhance the quality of the organization’s human resources; however, this may backfire if a labor surplus develops.

Hiring new employees is slow and expensive but strengthens the organization if labor needs are expected to expand for the long term.

Using technology as a substitute for labor can be slow to implement and costly, but it may improve the organization’s long-term performance.

New technology and hiring are difficult to reverse if conditions change.?

*Description of recruitment policies organizations use to make job vacancies more attractive.

Internal recruiting (promotions from within) generally makes job vacancies more attractive because candidates see opportunities for growth and advancement.

Lead-the-market pay strategies make jobs economically desirable.

Due-process policies signal that employers are concerned about employee rights.

Image advertising can give candidates the impression that the organization is a good place to work.

*List and comparison of sources of job applicants.

Internal sources, promoted through job postings, generate applicants who are familiar with the organization and motivate other employees by demonstrating opportunities for advancement. However, internal sources are usually insufficient for all of an organization’s labor needs.

Direct applicants and referrals tend to be inexpensive and to generate applicants who have self-selected; this source risks charges of unfairness, especially in cases of nepotism.

Newspaper and magazine advertising reach a wide audience and may generate many applications, although many are likely to be unsuitable.

Electronic recruiting gives organizations access to a global labor market, tends to be inexpensive, and allows convenient searching of databases.

Public employment agencies are inexpensive and typically have screened applicants. Private employment agencies charge fees but may provide many services. Another inexpensive channel is schools and colleges, which may give the employer access to top-notch entrants to the labor market.

*Description of the recruiter’s role in the recruitment process, including limits and opportunities.

Through their behavior and other characteristics, recruiters influence the nature of the job vacancy and the kinds of applicants generated.

Applicants tend to perceive job experts as more credible than recruiters who are HR specialists. They tend to react more favorably to recruiters who are warm and informative.

Recruiters should not mislead candidates. Realistic job previews are helpful but have a weak and inconsistent effect on job turnover compared with personnel policies and actual job conditions.

Recruiters can improve their impact by providing timely feedback, avoiding behavior that contributes to a negative impression of the organization, and teaming up with job experts.?

CHAPTER No. 6

Selecting Employees and Placing Them in Jobs

*Identification of the elements of the selection process.

Selection typically begins with a review of candidates’ employment applications and résumés.

The organization administers tests to candidates who meet basic requirements, and qualified candidates undergo one or more interviews. Organizations check references and conduct background checks to verify the accuracy of information provided by candidates.

A candidate is selected to fill each vacant position.

Candidates who accept offers are placed in the positions for which they were selected.?

*Definition of the ways to measure the success of a selection method.

One criterion is reliability, which indicates the method is free from random error so that measurements are consistent.

A selection method should also be valid, meaning that performance on the measure (such as a test score) is related to what the measure is designed to assess (such as job performance).

Criterion-related validity shows a correlation between test scores and job performance scores. Content validity shows consistency between the test items or problems and the kinds of situations or problems that occur on the job.

Construct validity establishes that the test actually measures a specified construct, such as intelligence or leadership ability, which is presumed to be associated with success on the job.

A selection method also should be generalizable, so that it applies to more than one specific situation.

Each selection method should have utility meaning it provides economic value greater than its cost.

Finally, selection methods should meet the legal requirements for employment decisions.?

*Summary of the government’s requirements for employee selection.

The selection process must be conducted in a way that avoids discrimination and provides access to persons with disabilities. This means selection methods must be valid for job performance, and scores may not be adjusted to discriminate against or give preference to any group.

Questions may not gather information about a person’s membership in a protected class, such as race, sex, or religion, nor may the employer investigate a person’s disability status.

Employers must respect candidates’ privacy rights and ensure that they keep personal information confidential. They must obtain consent before conducting background checks and notify candidates about adverse decisions made as a result of background checks.?

*Comparison of the common methods used for selecting human resources.

Nearly all organizations gather information through employment applications and résumés.

These methods are inexpensive, and an application form standardizes basic information received from all applicants. The information is not necessarily reliable, because each applicant provides the information. These methods are most valid when evaluated in terms of the criteria in a job description.

References and background checks help to verify the accuracy of the information.

Employment tests and work samples are more objective.

To be legal, any test must measure abilities that actually are associated with successful job performance. Employment tests range from general to specific. General-purpose tests are relatively inexpensive and simple to administer.

Tests should be selected to be related to successful job performance and avoid charges of discrimination.

Interviews are widely used to obtain information about a candidate’s interpersonal and communication skills and to gather more detailed information about a candidate’s background.

Structured interviews are more valid than unstructured ones.

Situational interviews provide greater validity than general questions.

Interviews are costly and may introduce bias into the selection process.

Organizations can minimize the drawbacks through preparation and training.

*Description of major types of employment tests.

Physical ability tests measure strength, endurance, psychomotor abilities, and other physical abilities. They can be accurate but can discriminate and are not always job-related.

Cognitive ability tests, or intelligence tests, tend to be valid, especially for complex jobs and those requiring adaptability. They are a relatively low-cost way to predict job performance but have been challenged as discriminatory.

Job performance tests tend to be valid but are not always generalizable.

Using a wide variety of job performance tests can be expensive.

Personality tests measure personality traits such as extroversion and adjustment. Research supports their validity for appropriate job situations, especially for individuals who score high on conscientiousness, extroversion, and agreeableness. These tests are relatively simple to administer and generally meet legal requirements.

Organizations may use paper-and honesty tests, which can predict certain behaviors, including employee theft. Organizations may not use polygraphs to screen job candidates. Organizations may also administer drug tests (if all candidates are tested and drug use can be an on-the-job safety hazard).

A more job-related approach is to use impairment testing.

Passing a medical examination may be a condition of employment, but to avoid discrimination against persons with disabilities, organizations usually administer a medical exam only after making a job offer.?

*Discuss how to conduct effective interviews.

Interviews should be narrow, structured, and standardized.

Interviewers should identify job requirements and create a list of questions related to the requirements. Interviewers should be trained to recognize their own personal biases and conduct objective interviews.

Panel interviews can reduce problems related to interviewer bias. Interviewers should put candidates at ease in a comfortable place that is free of distractions. Questions should ask for descriptions of relevant experiences and job-related behaviors.

The interviewers also should be prepared to provide information about the job and the organization.

*Explanation of how employers carry out the process of making a selection decision.

The organization should focus on the objective of finding the person who will be the best fit for the job and organization. This includes an assessment of ability and motivation.

Decision-makers may use a multiple-hurdle model in which each stage of the selection process eliminates some of the candidates from consideration at the following stages.

At the final stage, only a few candidates remain, and the selection decision determines which of these few is the best fit.

An alternative is a compensatory model, in which all candidates are evaluated with all methods.

A candidate who scores poorly with one method may be selected if he or she scores very high on another measure

CHAPTER No. 7

Training Employees

*Discuss how to link training programs to organizational needs.

Organizations need to establish training programs that are effective. In other words, they teach what they are designed to teach, and they teach skills and behaviors that will help the organization achieve its goals.

Organizations create such programs through instructional design. This process begins with a needs assessment. The organization then ensures readiness for training, including employee characteristics and organizational support.

Next, the organization plans a training program, implements the program, and evaluates the results.

*Explanation of how to assess the need for training.

Needs assessment consists of organization analysis, person analysis, and task analysis. The organization analysis determines the appropriateness of training by evaluating the characteristics of the organization, including its strategy, resources, and management support.

The person analysis determines individuals’ needs and readiness for training. The task analysis identifies the tasks, knowledge, skills, and behaviors that training should emphasize.

It is based on examination of the conditions in which tasks are performed, including equipment and environment of the job, time constraints, safety considerations, and performance standards

*Explanation of how to assess employees’ readiness for training.

Readiness for training is a combination of employee characteristics and a positive work environment that permit training.

The necessary employee characteristics include the ability to learn the subject matter, favorable attitudes toward the training, and motivation to learn. A positive work environment avoids situational constraints such as lack of money and time.

In a positive environment, both peers and management support training.?

*Describe how to plan an effective training program.

Planning begins with establishing objectives for the training program. These should define an expected performance or outcome, the desired level of performance, and the conditions under which the performance should occur.

Based on the objectives, the planner decides who will provide the training, what topics the training will cover, what training methods to use, and how to evaluate the training.

Even when organizations purchase outside training, someone in the organization, usually a member of the HR department, often is responsible for training administration.

The training methods selected should be related to the objectives and content of the training program. Training methods may include presentation methods, hands-on methods, or group-building methods.?

*Comparison of widely used training methods.

Classroom instruction is most widely used and is one of the least expensive and least time-consuming ways to present information on a specific topic to many trainees. It also allows for group interaction and may include hands-on practice.

Audiovisual and computer-based training need not require that trainees attend a class, so organizations can reduce time and money spent on training.

Computer-based training may be interactive and may provide for group interaction.

On-the-job training methods such as apprenticeships and internships give trainees firsthand experiences. A simulation represents a real-life situation, enabling trainees to see the effects of their decisions without dangerous or expensive consequences. Business games and case studies are other methods for practicing decision-making skills.

Participants need to come together in one location or collaborate online.

Behavior modeling gives trainees a chance to observe desired behaviors, so this technique can be effective for teaching interpersonal skills.

Experiential and adventure learning programs provide an opportunity for group members to interact in challenging circumstances but may exclude members with disabilities. Team training focuses a team on the achievement of a common goal.

Action learning offers relevance because the training focuses on an actual work-related problem.

*Summary of how to implement a successful training program.

Implementation should apply principles of learning. In general, effective training communicates learning objectives, presents information in distinctive and memorable ways, and helps trainees link the subject matter to their jobs. Employees are most likely to learn when training is linked to job experiences and tasks. Employees learn best when they demonstrate or practice what they have learned and when they receive feedback that helps them improve. Trainees remember information better when it is broken into small chunks, presented with visual images, and practiced many times. Written materials should be easily readable by trainees.

*Evaluation of the success of a training program.

Evaluation of training should look for transfer of training by measuring whether employees are performing the tasks taught in the training program.

Assessment of training also should evaluate training outcomes, such as a change in attitude, ability to perform a new skill, and recall of facts or behaviors taught in the training program. Training should result in improvement in the group’s or organization’s outcomes, such as customer satisfaction or sales. An economic measure of training success is the return on investment.?

*Description of training methods for employee orientation and diversity management.

Employee orientation is training designed to prepare employees to perform their job effectively, learn about the organization, and establish work relationships. Organizations provide for orientation because, no matter how realistic the information provided during employment interviews and site visits, people feel shocked and surprised when they start a new job, and they need to learn the details of how to perform the job.

A typical orientation program includes information about the overall company and the department in which the new employee will be working, covering social as well as technical aspects of the job.

Orientation programs may combine several training methods, from printed materials to on-the-job training to e-learning.

Diversity training is designed to change employee attitudes about diversity and/or develop skills needed to work with a diverse workforce.

Evidence regarding these programs suggests that diversity training is most effective if it is tied to business objectives, has management support, emphasizes behaviors and skills, and is tied to organizational policies and practices that value diversity, including a way to measure success.?

CHAPTER No. 8

Managing Employees’ Performance

*Identify the activities involved in performance management.

Performance management is the process through which managers ensure that employees' activities and outputs contribute to the organization’s goals.

The organization begins by specifying which aspects of performance are relevant to the organization.

Next, the organization measures the relevant aspects of performance through performance appraisal. #

Finally, in performance feedback sessions,?managers provide employees with information about their performance so they can adjust their behavior to meet the organization’s goals. Feedback includes efforts to identify and solve problems.?

*Discussion of the purposes of performance management systems.

Organizations establish performance management systems to meet three broad purposes.

Effective performance management helps the organization with strategic purposes, that is, meeting business objectives. It does this by helping to link employees’ behavior with the organization’s goals.

The administrative purpose of performance management is to provide information for day-to-day decisions about salary, benefits, recognition, and retention or termination.

The developmental purpose of performance management is to use the system as a basis for developing employees’ knowledge and skills.?

*Definition of five criteria for measuring the effectiveness of a performance management system.

Performance measures should fit with the organization’s strategy by supporting its goals and culture. Performance measures should be valid, so they measure all the relevant aspects of performance and do not measure irrelevant aspects of performance.

These measures should also provide interrater and test-retest reliability so that appraisals are consistent among raters and over time.

Performance measurement systems should be acceptable to the people who use them or receive feedback from them.

Finally, a performance measure should specifically tell employees what is expected of them and how they can meet those expectations.?

*Comparison of the major methods for measuring per performance

Performance measurement may use ranking systems such as simple ranking, forced distribution, or paired comparisons to compare one individual’s performance with that of other employees.

These methods may be time-consuming, and they will be seen as unfair if actual performance is not distributed in the same way as the ranking system requires. However, ranking counteracts some forms of rater bias and helps distinguish employees for administrative decisions.

Other approaches involve rating employees’ attributes, behaviors, or outcomes.

Rating attributes is relatively simple but not always valid unless attributes are specifically defined. Rating behaviors requires a great deal of information, but these methods can be very effective. They can?link behaviors to goals, and ratings by trained raters may be highly reliable.

Rating results, such as productivity or achievement of objectives, tend to be less subjective than other kinds of rating, making this approach highly acceptable. Validity may be a problem because of factors outside the employee’s control. This method also tends not to provide many bases for determining how to improve.

Focusing on quality can provide practical benefits but is not as useful for administrative and developmental decisions.?

*Describe major sources of performance information in terms of their advantages and disadvantages.

Performance information may come from an employee’s self-appraisal and from appraisals by the employee’s supervisor, employees, peers, and customers.

Using only one source makes the appraisal more subjective. Organizations may combine many sources into a 360-degree performance appraisal.

Gathering information from each employee’s manager may produce accurate information unless the supervisor has little opportunity to observe the employee.

Peers are an excellent source of information about performance in a job where the supervisor does not often observe the employee. Disadvantages are that friendships (or rivalries) may bias ratings and peers may be uncomfortable with the role of rating a friend.

Subordinates often have the best chance to see how a manager treats employees. Employees may be reluctant to contribute honest opinions about a supervisor unless they can provide information anonymously.

Self-appraisals may be biased, but they do come from the person with the most knowledge of the employee’s behavior on the job, and they provide a basis for discussion in feedback sessions, opening up fruitful comparisons and areas of disagreement between the self-appraisal and other appraisals.

Customers may be an excellent source of performance information, although obtaining customer feedback tends to be expensive.?

*Definition of the types of rating errors, and explain how to minimize them.

People observe behavior often without a practical way of knowing all the relevant circumstances and outcomes, so they necessarily interpret what they see.

A common tendency is to give higher evaluations to people we consider similar to ourselves. Other errors involve using only part of the rating scale: Giving all employees ratings at the high end of the scale is called leniency error.

Rating everyone at the low end of the scale is called strictness error. Rating all employees at or near the middle is called central tendency. The halo error refers to rating employees positively in all areas?because of strong performance observed in one area.

The horns error is in rating employees negatively in all areas because of weak performance observed in one area.

Ways to reduce rater error are training raters to be aware of their tendencies to make rating errors and training them to be sensitive to the complex nature of employee performance so they will consider many aspects of performance in greater depth.

Politics also may influence ratings. Organizations can minimize appraisal politics by establishing a fair appraisal system and bringing managers together to discuss ratings in calibration meetings.?

*Explanation of how to provide performance feedback effectively.

Performance feedback should be a regular, scheduled management activity so that employees can correct problems as soon as they occur.

Managers should prepare by establishing a neutral location, emphasizing that the feedback session will be a chance for discussion, and asking the employee to prepare a self-assessment.

During the feedback session, managers should strive for a problem-solving approach and encourage employees to voice their opinions and discuss performance goals.

The manager should look for opportunities to praise and should limit criticism. The discussion should focus on behavior and results rather than on personalities.

*Summary of the ways to produce improvement in unsatisfactory performance.

For an employee who is motivated but lacks the ability, the manager should provide coaching and training, give detailed feedback about performance, and consider restructuring the job.

For an employee who has ability but lacks motivation, the manager should investigate whether outside problems are a distraction and if so, refer the employee for help.

If the problem has to do with the employees not feeling appreciated or rewarded, the manager should try to deliver more praise and evaluate whether additional pay and other rewards are appropriate.

For an employee lacking both ability and motivation, the manager should consider whether the employee is a good fit for the position.

Specific feedback or withholding rewards may spur improvement, or the employee may have to be demoted or terminated.

Solid employees who are high in ability and motivation will continue so and may be able to contribute even more if the manager provides appropriate direct feedback, rewards, and opportunities for development.?

* Discuss legal and ethical issues that affect performance management.

Lawsuits related to performance management usually involve charges of discrimination or unjust dismissal.

Managers must make sure that performance management systems and decisions treat employees equally, without regard to their race, sex, or other protected status.

Organizations can do this by establishing and using valid performance measures and by training raters to evaluate performance accurately.

A system is more likely to be legally defensible if it is based on behaviors and results, rather than on traits, and if multiple raters evaluate each person’s performance.

The system should include a process for coaching or training employees to help them improve, rather than simply dismissing poor performers.

An ethical issue of performance management is the use of electronic monitoring. This type of performance measurement provides detailed, accurate information, but employees may find it demoralizing, degrading, and stressful.

They are more likely to accept it if the organization explains its purpose, links it to help in improving performance, and keeps the performance data private.?