HR Test 3
Job Withdrawal
- A set of behaviors with which employees try to avoid the work situation physically, mentally, or emotionally. - Results when circumstances such as the nature of the job, supervisors and coworkers, pay levels, or the employee's own disposition cause the employee to become dissatisfied with the job.
As an Employee...
- Be prepared. Write your self-assessment objectively. - Try to stay engaged, even if you disagree with the appraisal. - Let the feedback sink in. Don't do anything rash. - Understand the appeals process if there is one. - Don't refuse to sign the appraisal, but feel free to add comments. - See this as an opportunity to improve. Ask your manager for suggestions.
Employment-at-Will Doctrine
- If the organization and employee do not have a specific employment contract, the employer or employee may end the employment relationship at any time. - Implied contracts - Discharge cannot violate a law or public policy.
Tasks and Roles of Job Satisfaction
- Job complexity - Meaningful work - Clear and appropriate roles (Role analysis technique - formally identifying expectations associated with a role.)
As a Manager.....
- Prepare thoroughly for the appraisal meeting. Have specific examples to justify your ratings. - Read the self-assessment and note areas where there will be disagreement. - Recognize that the employee may become defensive, turn to silence. Get them to actively engage in the discussion. - Remember the focus is on maintaining or improving performance. - Listen and respond with empathy. - Reinforce your commitment to them.
Involuntary Turnover
- Turnover initiated by an employer. - Often with employees who would prefer to stay.
Voluntary Turnover
- Turnover initiated by employees. - Often when the organization would prefer to keep them.
Types of Rating Errors
- contrast errors - distributional errors - Rater errors - Political behavior
Making Comparisons
- simple ranking (alternation ranking) - forced distribution - paired comparison
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.
Cost associated with involuntary turnover
-Recruiting, selecting, and training replacements -Lost productivity -Lawsuits -Workplace violence
Costs associated with voluntary turnover
-Recruiting, selecting, and training replacements -Lost productivity -Loss of talented employees.
Progressive Discipline Steps
1. Coaching 2. Verbal Warning 3. Written Warning 4. Termination
knowledge sharing
1. Continuous learning 2. Shared knowledge 3. Critical, systematic thinking 4. Learning culture Valued employees
Rating Behaviors
1. Critical- Incident Method 2. Behaviorally Anchored Rating Scale (BARS) 3. Behavioral Observation Scale (BOS) 4. Organizational Behavioral Modification (OBM)
Four components of OBM
1. Define a set of key behaviors necessary for job performance. 2. Use a measurement system to assess whether the employee exhibits the key behaviors. 3. Inform employees of the key behaviors, perhaps in terms of goals for how often to exhibit the behaviors. 4. Provide feedback and reinforcement based on employees' behavior.
Core elements to attract and retain talent
1. Do I know what is expected of me at work? 2. Do I have the materials and equipment to do my job? 3. At work, do I have the opportunity to do what I do best every day? 4. In the last 7 days, have I received recognition or praise for doing good work? 5. Does my supervisor seem to care about me as a person? 6. Is there someone at work who encourages my development? 7. At work, do my opinions seem to count? 8. Does the mission of the company make me feel my job is important? 9. Are my co-workers committed to doing quality work? 10. Do I have a best friend at work? 11. In the past 6 months, has someone talked to me about my progress? 12. This last year, have I had opportunities to learn and grow?
Job Satisfaction and Employee Engagement
1. Employee engagement 2. Brand alignment
MBO system has three components
1. Goals are specific, difficult, and objective. 2. Managers and their employees work together to set the goals. 3. The manager gives objective feedback through the rating period to monitor progress toward the goals. MBO can have a very positive effect on an organization's performance. The two right-hand columns in next slide, Table 10.2 are examples of feedback given after one year.
HRM Practices
1. Job design 2. Recruitment and Selection 3. Training 4. Performance Management 5. Compensation
Conditions that contribute to high performace
1. Knowledge sharing 2. Job satisfaction and employee engagement 3. Ethics
In a high-performance work system, the elements that must work together include:
1. Organizational structure 2. Task design 3. People (the selection, training, and development of employees) 4. Reward systems 5. Information systems HRM plays an important role in establishing all of these.
Employee separation must include
1. Outcome fairness 2. Interactional justice 3. Procedural justice
Measuring Results
1. Productivity 2. Management by objectives
3 components of job satisfaction are
1. Values 2. Perceptions 3. Ideas of what is important
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
Why Job Satisfaction and employee engagement is important
A condition underpinning any high-performance organization is that employees be fully engaged with their work. Being fully engaged tends to require that employees experience their jobs as fulfilling or allowing them to fulfill important values. Research supports the idea that employees' job satisfaction and job performance are related. Higher performance at the individual level should contribute to higher performance for the organization as a whole practices that do most to promote employee engagement are opportunities for career progress, recognition for accomplishments, and brand alignment. Employers have the most impact on brand alignment by providing career opportunities, using effective performance management systems, and maintaining a positive reputation.
Progressive Discipline
A formal discipline process in which the consequences become more serious if the employee repeats the offense.
Why ethics is important
A high-performance organization meets high ethical standards. Organizations and their employees must meet these standards if they are to maintain positive long-term relationships with their customers and their community. Ethical behavior is most likely to result from values held by the organization's leaders combined with systems that promote ethical behavior. Ethical behavior is a HRM concern. Systems that promote ethical behavior include such HRM functions as training, performance management, and discipline policies. A reputation for high ethical standards can help a company attract workers—and customers— who share those high standards Many efforts can be started or be supported by HR. Creating a climate of trust provides a strong foundation for all kinds of business relationships, including purchase contracts, labor-management agreements, and employees' confidence in the fairness of supervisors' decisions. People are more likely to trust an organization, manager, or employee when they see evidence of competence, openness and honesty, concern for stakeholders including employees and the community, reliability in keeping commitments, and identification with the organization so that an individual's values match up with the values expressed by the organization. HR professionals can provide performance feedback, training, coaching, and rewards to foster the development of many of these drivers of trust. Job design in which employees are empowered to deliver excellent customer care, make well-crafted products, or deliver other valued outcomes helps to align individual practices with an organization's highest Values. To maintain an ethical culture, ethical conduct should be defined and ethical abuses responded to and punished when detected. Ethical conduct should be rewarded. Employee development programs should include goals for trust-building. HR professionals can support these objectives with performance measures and pay policies that reward ethical conduct, never ethical lapses.
LO 9-2 Summarize the outcomes of a high-performance work system.
A high-performance work system achieves the organization's goals, typically including growth, productivity, and high profits. On the way to achieving these overall goals, the high-performance work system meets such intermediate goals as high quality, innovation, customer satisfaction, job satisfaction, and reduced absenteeism and turnover.
LO 9-1 Define high-performance work systems, and identify the elements of such a system.
A high-performance work system is the right combination of people, technology, and organizational structure that makes full use of the organization's resources and opportunities in achieving its goals. The elements of a high-performance work system are organizational structure, task design, people, reward systems, and information systems. These elements must work together in a smoothly functioning whole.
Procedural Justice
A judgment that fair methods were used to determine the consequences an employee receives.
Outcome Fairness
A judgment that the consequences given to employees are just.
Interactional Justice
A judgment that the organization carried out its actions in a way that took the employee's feelings into account.
Exit Interview
A meeting of a departing employee with the employee's supervisor and/or a human resource specialist to discuss the employee's reasons for leaving.
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.
Employee Assistance Program (EAP)
A referral service that employees can use to seek professional treatment for emotional problems or substance abuse.
Outplacement Counseling
A service in which professionals try to help dismissed employees manage the transition from one job to another.
Role Overload
A state in which too many expectations or demands are placed on a person.
Benefits of Performance Appraisal
Although many employees dread the annual "performance appraisal" meeting at which a boss picks apart the employee's behaviors from the past year, performance management can potentially deliver many benefits—to individual employees as well as to the organization as a whole. Effective performance management can tell top performers they are valued, encourage communication between managers and their employees, establish consistent standards for evaluating employees, and help the organization identify its strongest and weakest employees. To meet these objectives, companies must think of effective performance management as a process, not an event.
Role Conflict
An employee's recognition that demands of the job are incompatible or contradictory.
Open-Door Policy
An organization's policy of making managers available to hear complaints.
LO 10-1 Identify the activities involved in performance management. Power Point
As shown in the model, feedback and formal performance evaluation are important parts of the process; however, they are not the only critical components. An effective performance management process contributes to the company's overall competitive advantage and must be given visible support by the CEO and other senior managers. This support ensures that the process is consistently used across the company, appraisals are completed on time, and giving and receiving ongoing performance feedback is recognized as an accepted part of the company's culture.
First, Break All the Rules
Based on interviews by the Gallup organization of over 80,000 managers in over 400 companies. The companies that had the highest ratings on the "Q12" also were the top performing companies financially.
Organizations try to avoid the need for involuntary turnover and to minimize voluntary turnover, especially among top performers because
Both kinds of turnover are costly, as summarized in Table 11.1. Replacing workers is expensive, and new employees need time to learn their jobs and build teamwork skills. Effective HRM can help the organization minimize both kinds of turnover, as well as carry it out effectively when necessary. Despite a company's best efforts at personnel selection, training, and compensation, some employees will fail to meet performance requirements or will violate company policies.
What's the story of how Burt's Bees got made?
Burt was trying to sell a gallon of honey. He met another woman who made it into the right container with her graphic design skills. He gave her the wax and she made the formula to make the lip bomb from the farmer's almanac.
Where did the presenter work
Burt's Bees & Campbell Soup company
LO 11-5 Explain how job dissatisfaction affects employee behavior.
Circumstances involving the nature of a job, supervisors and co-workers, pay levels, or the employee's own disposition may produce job dissatisfaction. When employees become dissatisfied, they may engage in job withdrawal: behavior change, physical job withdrawal, or psychological job withdrawal. Behavior change means employees try to bring about changes in policy and personnel through inside action or through whistle-blowing or lawsuits. Physical job withdrawal may range from tardiness and absenteeism to job transfer or leaving the organization altogether. Psychological withdrawal involves displaying low levels of job involvement and organizational commitment. It is especially likely when employees cannot find another job.
Expert Systems
Computer systems that support decision making by incorporating the decision rules used by people who are considered to have expertise in a certain area
Mediation
Conflict resolution procedure in which a mediator hears the views of both sides and facilitates the negotiation process but has no formal authority to dictate a resolution.
Arbitration
Conflict resolution procedure in which an arbitrator or arbitration board determines a binding settlement.
How do I find a company that matches my values?
Corporate social responsibility & GRI.
Employee engagement
Degree to which employees are fully involved in their work and the strength of their commitment to their job and company.
Wrongful Discharge
Discharge may not violate an implied agreement. e.g., employer had promised job security e.g. action inconsistent with company rules. Discharge may not violate public policy. e.g., terminating employee for refusing to do something illegal or unsafe.
LO 11-4 Summarize ways in which organizations can discipline employees fairly.
Discipline should follow the principles of the hot-stove rule, meaning discipline should give warning and have consequences that are consistent, objective, and immediate. A system that can meet these requirements is called progressive discipline, in which rules are established and communicated, and increasingly severe consequences follow each violation of the rules. Usually, consequences range from a spoken warning through written warnings, suspension, and termination. These actions should be documented in writing. Organizations also may resolve problems through alternative dispute resolution, including an open-door policy, peer review, mediation, and arbitration. When performance problems seem to result from substance abuse or mental illness, the manager may refer the employee to an employee assistance program. When a manager terminates an employee or encourages an employee to leave, outplacement counseling may smooth the process.
Political Behavior in Performance Appraisals
Distorting a performance evaluation to advance one's personal goals.
continuous learning
Each employee's and each group's ongoing efforts to gather information and apply the information to their decisions in a learning organization.
LO 11-3 Identify legal requirements for employee discipline.
Employee discipline should not result in wrongful discharge, such as a termination that violates an implied contract or public policy. Discipline should be administered evenhandedly, without discrimination. Discipline should respect individual employees' privacy. Searches and surveillance should be for a legitimate business purpose, and employees should know about and consent to them. Reasons behind disciplinary actions should be shared only with those who need to know them. When termination is part of a plant closing, employees should receive the legally required notice, if applicable.
LO 11-2 Discuss how employees determine whether the organization treats them fairly.
Employees draw conclusions based on the outcomes of decisions regarding them, the procedures applied, and the way managers treat employees when carrying out those procedures. Outcome fairness is a judgment that the consequences are just. The consequences should be consistent, expected, and in proportion to the significance of the behavior. Procedural justice is a judgment that fair methods were used to determine the consequences. The procedures should be consistent, unbiased, based on accurate information, and correctable. They should take into account the viewpoints of everyone involved, and they should be consistent with prevailing ethical standards. Interactional justice is a judgment that the organization carried out its actions in a way that took the employee's feelings into account—for example, by listening to the employee and treating the employee with dignity.
Recruitment and Selection
Employees who contribute to teamwork, empowerment, and knowledge sharing
Discrimination
Employers must make discipline decisions without regard to a person's age, sex, race, or other protected status. Evenhanded, carefully documented discipline can avoid such claims.
Monitoring Job Satisfaction
Employers should be 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 part of the organization's HR strategy to monitor trends and prevent voluntary turnover. The exit interview
Job Design
Enable the organization to benefit from teamwork and employee empowerment
Performance Management
Ensure that employees' work contributes to achieving the organization's goals.
The CSR discusses employee benefits. Patagonia offers up to 9 weeks of time away from your job called a sabbatical.
Fact: 2 months of work for an environmental group of your choice. This shows they follow their values.
Hershey Slave Labor Will End With Switch to
Fair Trade Cocoa. Hershey slave labor to end, as chocolate giant vows to use certified Fair Trade Coca Cola.
CSR discusses employment issues. Jack Sparrow and Carnival cruise line employees subject to Maritime law?
False, only the employment
Safety metrics. For every 100 Tiffany and Co. employees, 10 are injured.
False, their recordable incident rate is 2.21. 2 for every 100 workers and they employ 12,000 workers (can include the miners)
The GAP supports your commute by offering to pay for your car lease for a period of time
False: Offers commuter benefits for full and Part-time employees. San Fran BART passes.
Consumer goods firms are usually more _________ _________ than tech firms.
Female friendly
LO 10-8 Summarize ways to produce improvement in unsatisfactory performance.
For an employee who is motivated but lacks 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 employee's 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.
LO 10-8 Summarize ways to produce improvement in unsatisfactory performance. Power Point
Give performance feedback, take it in as an employee and be objective an an employer.
GRI
Global reporting initiative, they voluntarily report on economic, social, and environmental performance. Since it is voluntary, not all companies report the same things, but a good source to learn what your prospective company is doing.
LO 11-4 Summarize ways in which organizations can discipline employees fairly. Powerpoint
Hot- Stove Rule & Progressive- Discipline
LO 9-4 Explain how human resource management can contribute to high performance
In a high-performance organization, employees know the organization's goals and what they must must do to help achieve those goals. HR can contribute to this ideal through the design of the organization's performance management system.
LO 11-1 Distinguish between involuntary and voluntary turnover, and describe their effects on an organization.
Involuntary turnover occurs when the organization requires employees to leave, often when they would prefer to stay. Voluntary turnover occurs when employees initiate the turnover, often when the organization would prefer to keep them. Both are costly because of the need to recruit, hire, and train replacements. Involuntary turnover can also result in lawsuits and even violence.
What can traveling and experience out of state do?
It can add $5,000 to your starting salary, so if you can get an out of state or country internship it is encouraged.
LO 9-4 Explain how human resource management can contribute to high performance.
Jobs should be designed to foster teamwork and employee empowerment. Recruitment and selection should focus on obtaining employees who have the qualities necessary for teamwork, empowerment, and knowledge sharing. When the organization selects for teamwork and decision-making skills, it may have to provide training in specific job tasks. Training also is important because of its role in creating a learning organization. The performance management system should be related to the organization's goals, with a focus on meeting internal and external customers' needs. Compensation should include links to performance, and employees should be included in decisions about compensation. Research suggests that it is more effective to improve HRM practices as a whole than to focus on one or two isolated practices.
LO 10-9 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. Employees are more likely to accept electronic monitoring if the organization explains its purpose, links it to help in improving performance, and keeps the performance data private.
Methods for measuring performance
Making Comparisons, Rating attributes, Rating behaviors, Measuring results.
Preparing for a Feedback Session
Managers should be prepared for each formal feedback session.
LO 9-3 Describe the conditions that create a high-performance work system.
Many conditions contribute to high-performance work systems by giving employees skills, incentives, knowledge, autonomy, and employee satisfaction. Teamwork and empowerment can make work more satisfying and provide a means for employees to improve quality and productivity. Organizations can improve performance by creating a learning organization in which people constantly learn and share knowledge so that they continually expand their capacity to achieve the results they desire. In a high-performance organization, employees experience job satisfaction or even "occupational intimacy." For long-run high performance, organizations and employees must be ethical as well.
Employee Self-Assessment
Many organizations have the employee complete a self-assessment prior to the review meeting. Do you think most employees provide objective self-assessment data? If self-assessment data is provided, begin the discussion by reviewing their self-assessment data.
Alternative Dispute Resolution (ADR)
Methods of solving a problem by bringing in an impartial outsider but not using the court system.
Burt's Bees: A cycle
Naturtal (Ingredients are natural, processing, and well being)→ Humanitarian (Employment, fair trade, social responsibility) → Environmental→ in the middle Constituents (Consumers, customers, community, vendors, industry, government)
Why elements of a high- performance work system are important:
Organizational structure promotes cooperation, learning, and continuous improvement. The right people are a key element of high-performance work systems; HR recruits, selects, trains and develops them and provides performance measures by which employees are judged, the methods of measuring performance, and the incentive pay and other rewards linked to success.
LO 11-6 Describe how organizations contribute to employees' job satisfaction and retain key employees.
Organizations can try to identify and select employees who have personal dispositions associated with job satisfaction. They can make jobs more complex and meaningful—for example, through job enrichment and job rotation. They can use methods such as the role analysis technique to make roles clear and appropriate. They can reinforce shared values and encourage social support among employees. They can try to establish satisfactory pay levels and communicate with employees about pay structure and pay raises. Monitoring job satisfaction helps organizations identify which of these actions are likely to be most beneficial.
LO 10-2 Discuss the purposes of performance management systems.
Organizations establish performance management systems to meet three broad purposes. The strategic purpose is aimed at meeting business objectives. The system 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 using the system as a basis for developing employees' knowledge and skills.
Employee Separation
Organizations must develop a standardized, systematic approach to discipline and discharge Not to be left solely to the discretion of individual managers or supervisors Should be based on principles of justice and law Should allow for various ways to intervene. Because of the critical financial and personal risks associated with employee dismissal, it is easy to see why organizations must develop a standardized, systematic approach to discipline and discharge.
Organizations dealing with employee turnover
Organizations must try to ensure that good performers want to stay with the organization and that employees whose performance is chronically low are encouraged - or forced - to leave. Both of these challenges involve employee turnover - employees leaving the organization. Typically, the employees who leave voluntarily are either the organization's worst performers, who quit before they are fired, or its best performers, who can most easily find attractive new opportunities.
Notification of Layoffs
Organizations that plan broad-scale layoffs may be subject to the Workers' Adjustment, Retraining and Notification Act (WARN). Employers covered by the law are required to give notice before any closing or layoff.
LO 11-6 Describe how organizations contribute to employees' job satisfaction and retain key employees.
Organizations want to prevent withdrawal behaviors. To prevent job withdrawal, organizations need to promote job satisfaction. People will be satisfied with their jobs as long as they perceive that their jobs meet their important values. Two other aspects of pay satisfaction influence job satisfaction- satisfaction with pay structure—the way the organization assigns different pay levels to different levels and job categories and pay raises.
LO 10-6 Define 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 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.
Mr. Produrgal says: Effective manager is genuinely caring about
People serving under you.
LO 10-7 Explain 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.
LO 10-5 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.
LO 10-1 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. First, the organization specifies 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.
LO 10-4 Compare the major methods for measuring 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, tends 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 much basis for determining how to improve. Focusing on quality can provide practical benefits, but is not as useful for administrative and developmental decisions.
LO 10-3 Define five criteria for measuring the effectiveness of a performance management system.
Performance measures should be strategic—fitting 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. A performance measure should be specific, telling employees what is expected of them and how they can meet those expectations.
Hot-Stove Rule
Principle of discipline that says discipline should be like a hot stove, giving clear warning and following up with consistent, objective, immediate consequences. The glowing or burning stove gives warning not to touch. Anyone who ignores the warning will be burned. The stove has no feelings to influence which people it burns, and it delivers the same burn to any touch and is immediate. Like the hot stove, an organization's discipline should give warning and have consequences that are consistent, objective, and immediate.
Peer Review
Process for resolving disputes by taking them to a panel composed of representatives from the organization at the same levels as the people in the dispute.
Brand alignment
Process of ensuring that HR policies, practices, and programs support or are concurrent with an organization's overall culture or brand, including its products and services. Ex: South West Airlines has a motto to treat their employees like they treat their customers, in the best way possible. This leads to happier employees and better customer ratings.
Performance management
Process through which managers ensure that employees' activities and outputs contribute to the organization's goals. Process requires: Knowing what activities and outputs are desired, Observing whether they occur, Providing feedback to help employees meet expectations.
Rater bias
Raters often let their opinion of one quality color their opinion of others Includes: Halo error & Horns error.
Uniform Guidelines on Employee Selection Procedures
Require that organizations avoid using criteria such as race and age as a basis for employment decisions.
High-performance work system
Right combination of people, technology, and organizational structure that makes full use of the organization's resources and opportunities in achieving its goals. Each of these elements must fit well with the others in a smoothly functioning whole.
Behaviorally Anchored Rating Scale (BARS)
Scale showing specific statements of behavior that describe different levels of performance.
Developmental Purpose
Serves as a basis for developing employees' knowledge and skills. Even employees who are meeting expectations can become more valuable when they hear and discuss performance feedback. Effective performance feedback makes employees aware of their strengths and of the areas in which they can improve.
LO 10-6 Define types of rating errors, and explain how to minimize them. Power Point
Several kinds of errors and biases commonly influence performance measurements. People often tend to give a higher evaluation to people they consider similar to themselves. Most of us think of ourselves as effective, so if others are like us, they must be effective, too. It is sometimes wrong, and when similarity is based on characteristics such as race or sex, decisions may be discriminatory.
Mr. Produrgal says: STAR
Situation Task Action Result
Whistleblower
Someone who goes outside the organization to complain about something they see as illegal, immoral, or inappropriate.
Critical-Incident Method
Specific examples of employees acting in ways that are either effective or ineffective Employees receive feedback about what they do well and what they do poorly and how they are helping the organization achieve its goals.
SMART goals
Specific, Measurable, Attainable, Relevant, Time bound
LO 9-6 Summarize ways to measure the effectiveness of human resource management.
Taking a customer-oriented approach, HRM can improve quality by defining the internal customers who use its services and determining whether it is meeting those customers' needs. One way to do this is with an HRM audit, a formal review of the outcomes of HRM functions. The audit may look at any measure associated with successful management of human resources. Audit information may come from the organization's documents and surveys of customer satisfaction. Another way to measure HRM effectiveness is to analyze specific programs or activities. HR analytics can measure success in terms of whether a program met its objectives and whether it delivered value in an economic sense, such as by leading to productivity improvements.
Training
Teach employees the specific skills they need to perform the duties of their job.
LO 9-5 Discuss the role of HRM technology in high-performance work systems.
Technology can improve the efficiency of the human resource management functions and support knowledge sharing. HRM applications involve transaction processing, decision support systems, and expert systems. These often are part of a human resource information system using relational databases, which can improve the efficiency of routine tasks and the quality of decisions. With Internet technology, organizations can use e-HRM to let all the organization's employees help themselves to the HR information they need whenever they need it.
Organizational Commitment
The degree to which an employee identifies with the organization and is willing to put forth effort on its behalf.
Job Involvement
The degree to which people identify themselves with their jobs.
LO 11-3 Identify legal requirements for employee discipline. Power Point
The law gives employers wide latitude in hiring and firing, but employers must meet certain requirements. They must avoid wrongful discharge and illegal discrimination. They also must meet standards related to employees' privacy and adequate notice of layoffs.
Strictness
The rater favors lower rankings.
Leniency
The reviewer rates everyone near the top.
Role
The set of behaviors that people expect of a person in a particular job.
Finding solutions to performance problems
The type of action called for depends on what the employee lacks. - Lack of ability - Lack of motivation - Lack of both In general, employees who combine high ability with high motivation are solid performers.
Unjust dismissal
The usual claim is that the person was dismissed for reasons besides the ones that the employer states. Performance management systems provide evidence to support an organization's employment decisions.
Organizational structure
The ways organization groups its people into useful divisions, departments, and reporting relationships.
What does Burt's Bees believe in and do?
They have a lip bomb from bees and wax, named the company after the bees that Burt owned. They cared about the environment
Effects of culture on employees was in BB?
They were able to get volunteers to look through trash for weeks, explained, and taught about recycling. They also got better results. They created passion. Sometimes you just have to ask people. It's not about what leadership brings but what everyone brings in. You're just as much a part of the culture.
LO 10-5 Describe major sources of performance information in terms of their advantages and disadvantages. Power Point
To get as complete an assessment as possible, some organizations combine information from most or all of the possible sources, in what is called a 360-degree performance appraisal. the most used source of performance information is the employee's manager. It is usually assumed that supervisors have extensive knowledge of the job requirements and that they have enough opportunity to observe their employees. However, in some jobs, the supervisor does not have enough opportunity to observe the employee performing job duties. Peers are an excellent source of information about performance in a job where the supervisor does not often observe the employee. Peers are more favorable toward participating in reviews to be used for employee development. Subordinates—the people reporting to the manager—often have the best chance to see how well a manager treats employee. To protect employees, the process should be anonymous and use at least three employees to rate each manage. Self-ratings are rarely used alone, but they can contribute valuable information although hat individuals have a tendency to inflate assessments of their performance. A common approach is to have employees evaluate their own performance before the feedback session. The customer is often the only person who directly observes the service performance and may be the best source of performance information.
One way to overcome drawbacks of rating attributes is to measure employees' behavior
To rate behaviors, the organization begins by defining which behaviors are associated with success on the job. Which kinds of behavior help the organization achieve its goals? The appraisal for asks the manager to rate an employee in terms of each of the identified behaviors. Techniques used include: Critical incident method Behaviorally anchored rating scale (BARS) Behavioral observation scale (BOS) Organizational Behavior modification (OBM)
Diversity metrics. 36% of management banded jobs are held by female employees at Cocoa- Cola company.
True
For every 1000 Croc employees, 50 shoes are donated.
True: Greater than 50,000 shoes were donated by the company (not necessarily a good number.) This shows what is important to the company. You can compare the 1:1 with TOMS.
HR Analytics
Type of assessment of HRM effectiveness that involves determining the impact of, or the financial cost and benefits of, a program or practice.
Knowledge sharing importance
Ultimately, people are the essential ingredients in a learning organization. They must be committed to learning and willing to share what they have learned. A learning organization has five key features as listed. Employees must understand the entire work system they participate in, the relationships among jobs, their work units, and the organization as a whole. Employees who continuously learn about their work system are adding to their ability to improve performance. Training increases employees' value to the organization. HR can help create face-to-face and electronic systems for employee collaboration to create, capture, and share knowledge. Reward systems can be set up to encourage employees and teams to think in new ways.
Role Ambiguity
Uncertainty about what the organization expects from the employee in terms of what to do or how to do it.
Legal Requirements for Performance Management
Uniform guidelines on Employee Selection Procedures, Unjust dismissal.
Administrative purpose
Ways in which organizations use the system to provide information for day-to-day decisions about salary, benefits, and recognition programs. Performance management can support decision making related to employee retention, termination for poor behavior, and hiring or layoffs. Information in a performance appraisal can have a great impact on the future of individual employees.
retaining employees goes beyond preventing them from quitting. The organization needs to prevent
a broader negative condition, called job withdrawal. Organizations need employees who are fully engaged and committed to their work.
Corporate social responsibility
a business's concern for society's welfare. A report can be made and this is not required. You can find a ton of information about the company you are looking for
HR Dashboard
a display of a series of HR measures, showing the measures and progress towards meeting it.
HRM audit
a formal review of the outcomes of HRM functions, based on identifying key HRM functions and measures of business performance
Organizational Behavior Modification (OBM)
a plan for managing the behavior of employees through a formal system of feedback and reinforcement
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.
Role Analysis Technique
a process of formally identifying expectations associated with a role.
Behavioral Observation Scale (BOS)
a variation of a BARS which uses all behaviors necessary for effective performance to rate performance at a task. A BOS also asks the manager to rate frequency with which the employee has exhibited the behavior during rating period. managers and employees have said they prefer BOS for ease of use, providing feedback, maintaining objectivity, and suggesting training need.
Ethics
a written code of ethics, reinforcement of ethical behavior, performance measures that include ethical standards , channels for employees to seek help, training in ethical decision making.
learning organization
an organization in which the culture values and supports lifelong learning by enabling all employees to continually acquire and share knowledge.
Mr. Produrgal says: horns
annoying behavior that taints even good behavior
Mr. Produrgal says: You use the results of an engagement survey or people won't
answer the next one.
Uganda connected to the U.S. and can sell things for better prices here with
better worker conditions, and advantages because of fair trade.
A technique to minimize appraisal politics is
calibration meeting. Meeting at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating influence of rating errors.
Decision support systems
computer software systems designed to help managers solve problems.
Retaining employees helps retain
customers and increase sales.
Task design
determines how details of the organization's necessary activities will be grouped, whether into jobs or team responsibilities.
Strategic purpose
effective performance management helps the organization achieve its business objectives. Helps link employees' behavior with the organization's goals. Performance management defines what the organization expects from each employee and measures each employee's performance to identify where those expectations are and are not being met.
Information systems
enable sharing information widely.
Reward systems
encourage people to strive for objectives that support organization's overall goals.
Sometimes terminating a poor performer is the only way to show fairness,
ensure quality, and maintain customer satisfaction.
Mr. Produrgal says: Leniency
gives EVERYONE a favorable rating
Mr. Produrgal says: Halo effect particular behavior gives
gives an overall favorable rating.
Organizations need to manage
high-performing and low-performing employees
Productivity
is an important measure of success because getting more done with a smaller amount of resources (money or people) increases the company's profits. Can focus on MBO
You will only see the fair trade mark if
it's sourced outside of the U.S. and if they are in a process where they are paying more to benefit the farmers.
Calibration Meeting
meeting at which managers discuss employee performance ratings and provide evidence supporting their ratings with the goal of eliminating the influence of rating errors.
Forced-Distribution Method
method of performance measurement that assigns a certain percentage of employees to each category in a set of categories
Paired-Comparison Method
method of performance measurement that compares each employee with each other employee to establish rankings.
Graphic Rating Scale
method of performance measurement that lists traits and provides a rating scale for each trait; the employer uses the scale to indicate the extent to which an employee displays each trait.
Mixed-Standard Scales
method of performance measurement that uses several statements describing each trait to produce a final score for that trait.
Challenge of MBO
most functions are interdependent of each other so you have to ensure alignment. Ex:- Increase sales by 20%. Production, marketing, HR, Finance, IT.
More organizations are analyzing basic HR data to look for
patterns in employee retention and turnover. The results may confirm expectations or generate surprises that merit further investigation. Either way, they can help HR departments and managers determine which efforts deliver the best return.
Management by objectives (MBO)
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.
Organizations with low turnover and satisfied employees tend to
perform better
360-Degree Performance Appraisal
performance measurement that combines information from the employee's managers, peers, subordinates, self, and customers.
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, strictness, central tendency.
Transaction processing
refers to computations and calculations involved in reviewing and documenting HRM decisions and practices.
Purpose of Performance Management
strategic, administrative, developmental purpose.
Drawback of Ranking to make comparisons
that it leaves to the particular manager the decisions about what is "excellent knowledge" or "commendable judgment" or "poor interpersonal skills." The result is low reliability, because managers are likely to arrive at different judgments.
Sometimes terminations are necessary not because of individuals' misdeeds, but because the organization determines that for economic reasons it must close a facility. An organization that plans such broad-scale layoffs may be subject to the Workers' Adjustment Retraining and Notification Act. This federal law requires
that organizations with more than 100 employees give 60 days' notice before any closing or layoff that will affect at least 50 full-time employees. Seek legal advice before implementing a plant closing
Once the manager and others have measure and employee's performance, this information must be given to
the employee. Only after the employee has received feedback can he or she begin to plan how to correct any shortcomings. Managers should also enable the employee to be well prepared. The manager should ask the employee to complete a self-assessment ahead of time to think about their performance over the past rating period and to be aware of their strengths and weaknesses so they can participate more fully in the discussion. he organization can also help managers give accurate and fair appraisals by training them to use the appraisal process, encouraging them to recognize accomplishments that the employees themselves have not identified, and fostering a climate of openness in which employees feel they can be honest about their weaknesses.
Cloud Computing
the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or a personal computer.
Central tendecy
the rater puts everyone near the middle of the scale.
Fairness in rating performance and interpreting performance appraisals requires that managers
understand the kinds of distortions that commonly occur. Usually people make these errors unintentionally, especially when the criteria for measuring performance are not very specific. Halo and horn errors- someone who speaks well might be seen as helpful or talented in other areas simply because of the overall good impression created by this one quality. Or someone who is occasionally tardy might be seen as lacking in motivation. When the bias is in a favorable direction, this is called the halo error. When it involves negative ratings, it is called the horns error.
People
well suited and well prepared for their jobs. Their selection, well suited, training and development.
Horns error
when bias involves negative ratings. This can cause employees to feel frustrated and defensive.
Halo error
when bias is in a favorable direction. This can mistakenly tell employees they don't need to improve in any area.
Mr. Produrgal says: remember you are hired for what
you know and fired for who you are.
