HRM Presentation

Management of Human Resources

Performance Appraisal, Objective Measurement

Training: Content, Process, Outcome

Agenda

Performance Appraisal Definition

History

Purpose

Appraisal Process

Methods of Measurement

Distortions

Training Definition

Purpose

Determining Training Needs

Types

Methods of Measurement

Performance Appraisal

Performance Appraisal

A method by which the job performance of an employee is evaluated in terms of quality, quantity, time, cost, typically by the corresponding manager

History

Roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies

Performance appraisal systems began as simple methods of income justification

As a distinct and formal management procedure used in the evaluation of work performance, appraisal really dates from the time of the Second World War

Purpose

Provides feedback to employees Employee development Provides basis for management

decisions Documentation

Appraisal Process

Establish Performance Standards with Employees

Communicate Expectations

Measure Actual Performance

Compare Actual Performance with Standards

Discuss the Appraisal with the Employee

If Necessary, initiate Corrective Action

Appraisal Methods

I. Absolute standards

II.Relative standards

III.Outcomes

Appraisal Methods

Absolute Standards: employees are compared to a standard, & their evaluation is independent of any other employee in a work group

Types of Absolute Standards

Critical incident appraisal

Checklist Graphic rating

scale Forced choice Behaviorally

anchored rating scales


Critical Incident Appraisal Performance evaluation that focuses on

key behaviors that differentiates between doing the job effectively or ineffectively

The appraiser writes down anecdotes describing employee actions that were especially effective or ineffective


Critical Incident Appraisal Strengths:

It focuses on behaviors Positive incidents can provide good

examples for other employees Weaknesses:

Time consuming Not quantifiable


Checklist Appraisal Performance evaluation in which a rater

checks off applicable employee attributes

Appraiser uses a list of behavioral descriptions & checks off behaviors that apply to the employee

HR evaluator evaluates employee, the appraiser merely records the data

Checklist Appraisal SampleChecklist Yes No

1) are the supervisors orders usually followed?

2) does the individual approach customers promptly?

3) does the individual suggest additional merchandise to customers?

4) does the individual keep busy whenn not serving a customer?

5) does the individual lose his temper in public?

6) does the individual volunteer to help other employees?


Checklist Appraisal Strengths:

Reduces bias because the rater & the scorer are different

Weaknesses: Inefficient & time

consuming to develop individualized checklist items for numerous job categories


Graphic Rating Scale A performance appraisal method that

lists traits & a range of performance for each

Used to assess factors such as quantity & quality of work, job knowledge, cooperation, loyalty, dependability, attendance, honesty, integrity, attitudes, & initiative

Graphic Rating Scale SamplePerformance

FactorPerformance Rating

Quality of work, skill, completeness

Consistently unsatisfactory

Occasionally unsatisfactory

Consistently satisfactory

Sometimes superior Consistently superior

Quantity of work done in a day

Consistently unsatisfactory


Consistently satisfactory

Sometimes superior Consistently superior

Job knowledge is information pertinent to the job that an individual should have for satisfactory job performance

Poorly informed about work duties


Can answer most questions about

the job

Understands all phases of the job

Has complete mastery of all

phases of the job

Dependability is following directions & company policies without supervision

Requires constant supervision

Requires occasional follow

up

Usually can be counted on

Requires little supervision

Requires absolute minimum

supervision


Graphic Rating Scale Strengths:

Less time consuming to develop & administer

Provide quantitative analysis useful for comparison

Compared against checklist, more generalization of items makes it possible to compare individuals in diverse job categories

Weaknesses: Do not provide the dept of information

essays or critical incident method


Forced Choice Appraisal A type of checklist

where the rater must choose between two or more statements

The appraisers job is to identify which statement is most descriptive of the individual being evaluated

Forced Choice Sample

“Would you rather go to a party with a group of friends or attend a lecture by

a well known political figure?”


Forced Choice Appraisal Strengths:

Reduces bias & distortion because the appraiser knows the right answer

Weaknesses: People being appraised tend to dislike this

method because they are being forced to answer

Frustration arises from not knowing the right answer


Behaviorally Anchored Rating Scale A performance appraisal technique that

generates critical incidents & develops behavioral dimensions of performance

Combines major elements of graphic rating & critical incident methods

Behaviorally Anchored Rating SamplePosition: Employee Relations Specialist

Job Dimension: Ability to absorb & interpret policies

This Employee Relations Specialist:

9. could be expected to serve as an information source concerning new & changed policies for others in the organization

8. could be expected to be aware quickly of program changes & explain these to employees

7. could be expected to reconcile conflicting policies & procedures correctly

6. could be expected to recognize the need for additional information to understand better policy changes

5. could be expected to complete various HRM forms after receiving instruction

4. could be expected to require some help in mastering new policies

3. could be expected to know that there is always a problem but encounter errors before realizing his mistake

2. could be expected to incorrectly interpret guidelines

1. could be expected to be unable to learn new procedures after explanations


Behaviorally Anchored Rating Scale Strengths:

Specific feedback that it communicates

Weaknesses: Suffers from same distortions inherent in all

rating methods

Appraisal Methods

Relative Standards: Evaluating an employee's performance by comparing the employee with other employees

Types of Relative Standards

Group Order Ranking

Individual Ranking Paired

Comparison


Group Order Ranking Evaluating an employee's performance

by by placing them into a particular classification

Example: evaluator places employees into a particular classification such as top 20% of the population


Group Order Ranking Strengths:

Prevents rater from inflating their evaluations so that everyone looks good or average

Weaknesses: If the population is small, even if all are

excellent evaluator is forced to place an excellent employee into the last places

Zero-sum game consideration.


Individual Ranking Ranking employees performance from

highest to lowest Same advantages & disadvantages as

group order ranking


Paired Comparison Ranking Individuals performance by

counting the times any one individual is the preferred member when compared with all other employees

Appraiser selects one job trait, & compares each employee in a group with others. Score is obtained by the summation of the number of times the employee is superior

Paired Comparison Sample

Job Skills Evaluated: Innovation & Creativity

Employee Being Rated

Comparison with

Admir Betty Carmen Dante Emilio

Admir

- - - -Betty

+ + - +Carmen

+ - - -Dante

+ + + +Emilio

+ - - -


Strengths: Each employee is compared against every

other

Weaknesses: Difficult to accomplish if the company has

many employees

Appraisal Methods

Outcomes: an appraisal method that includes mutual objective setting & evaluation based on attainment of the specific objectives

Common Elements of MBO

Specific goals Participative decision making Specific time period Performance feedback

Factors that Distort Appraisals

Leniency error Halo error Similarity error Central tendency Inflationary pressures Inappropriate substitutes


Leniency Error: performance appraisal distortion caused by evaluating employees against one's own value system


Halo Error: the tendency to let our assessment of an individual on one trait influence our evaluation of that person on other specific traits


Similarity Error: evaluating employees based on the way an evaluator perceives himself or herself


Central Tendency: the tendency of a rater to give average ratings

Creating Effective Appraisal Systems

Use behavior based measures Combine absolute & relative standards Provide ongoing feedback Use multiple raters Rate selectively Train appraisers


Use behavior based measures: do not rate using 'traits' such as loyalty, courage, reliability, etc. since these are objective & do not equate into productiveness


Combine absolute & relative standards: AS is biased towards positive leniency, while RS has little actual variability. Solution is to mix them up so that they cancel each others weaknesses


Provide ongoing feedback: do not sum up all negative feedback for a long period of time before giving it to the employee. This will make the appraisal an unpleasant experience which the employee will try to avoid


Use multiple raters: probability tells us that as the number of raters increase, so does the probability of attaining more accurate information

Peer evaluations Upward appraisal 360 degree appraisals


Rate selectively: appraisers should only rate those areas in which they have job knowledge


Train appraisers: appraising employees correctly is a difficult job & is often underestimated. Training is needed to eliminate bias & halo effects

Training

Definition of Training

Employee Training: present oriented training that focuses on individuals current job

Employee Development: future oriented training that focuses on employee personal growth

New Employee Orientation: activities that introduce new employees to the organization & their work unit

Purpose of Training

Onboarding: Expands information received about the

company during the recruitment stage Helps reduce initial anxiety during the beginning

of the job Hastens familiarization with the company's

objectives, culture, philosophy, rules, procedures, etc

Purpose of Training

Employee Training Maintenance of

human errors Improving

productivity Employee Development

Employee advancement / growth

Determining Training Needs

What deficiencies if any doIncumbents have in the skills, Knowledge, abilities, requiredTo exhibit the necessary job

behaviors?

What behaviors areNecessary for each job

Incumbent to complete hisArranged tasks?

What are the organizations goals?

What task must be completedTo achieve the goals?

Is There a need for training?

Typical Training Methods On the job

Job rotation Apprenticeships Internships

Off the job Classroom lectures Multimedia training Simulations Vestibule training

Typical Training Methods Job rotation: involves lateral transfers

that allow employees to work on different jobs & provides exposure to various tasks

Typical Training Methods Apprenticeships: combination of

classroom instruction & working alongside a seasoned veteran

Used mainly in skilled trades

Typical Training Methods Internships: students in higher

education use their instruction & training in a chosen profession as part of their education.

Used by companies to minimize recruitment expenses

Typical Training Methods Classroom lectures: typical classroom

instruction Multimedia learning: demonstrates

technical skills not easily presented by other methods. Can either be videos or online

Simulations: case studies, experiments, computer simulation, group interaction

Typical Training Methods Vestibule training: training using the

same equipment but in a simulated work environment

Typical Training Methods Adventure training: wilderness/

outdoor/ survival training used to develop teamwork

Sample in next slide

Measuring Training Effectiveness

Easy example:

Advance driving techniques training allows a delivery truck driver to make 5 more deliveries per day. Each delivery is $10 of the drivers time:

$10 x 5 additional deliveries = $50 benefit per day for the employer


Kirkpatrick's Model:

Level 1: measures the reactions of participants toward the training & answers questions about whether the participants liked the training, achieved the goals, liked the trainers, suggestion to improve the training


Level 2: measures how much participants learned using pre & post testing or by comparing against a group that did not go through the training


Post training performance method: evaluating training programs based on how well employees can perform their jobs after training


Pre-Post Training Performance Method: evaluating training programs based on the difference in performance before & after training


Pre-Post Training performance with control group Method: evaluating training by comparing pre & post training results with individuals


Level 3: measures whether the training actually changes the employees behavior.


Level 4: measures whether the training benefited the employee or not. Done by conducting ROI, productivity tests, or comparing against a benchmark

References

Human Resource Management 10th Edition by David A. Decenzo & Stephen P. Robbins

Kokology by Tadahiko Nagao & Isamu Saito

Kokology 2 by Tadahiko Nagao & Isamu Saito

HRM Presentation

Business

Transcript of HRM Presentation