HRM Presentation
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Transcript of 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
Types of Absolute Standards
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
Types of Absolute Standards
Critical Incident Appraisal Strengths:
It focuses on behaviors Positive incidents can provide good
examples for other employees Weaknesses:
Time consuming Not quantifiable
Types of Absolute Standards
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?
Types of Absolute Standards
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
Types of Absolute Standards
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
Occasionally 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
Occasionally unsatisfactory
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
Types of Absolute Standards
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
Types of Absolute Standards
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?”
Types of Absolute Standards
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
Types of Absolute Standards
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
Types of Absolute Standards
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
Types of Relative Standards
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
Types of Relative Standards
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.
Types of Relative Standards
Individual Ranking Ranking employees performance from
highest to lowest Same advantages & disadvantages as
group order ranking
Types of Relative Standards
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
+ - - -
Types of Relative Standards
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
Factors that Distort Appraisals
Leniency Error: performance appraisal distortion caused by evaluating employees against one's own value system
Factors that Distort Appraisals
Halo Error: the tendency to let our assessment of an individual on one trait influence our evaluation of that person on other specific traits
Factors that Distort Appraisals
Similarity Error: evaluating employees based on the way an evaluator perceives himself or herself
Factors that Distort Appraisals
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
Creating Effective Appraisal Systems
Use behavior based measures: do not rate using 'traits' such as loyalty, courage, reliability, etc. since these are objective & do not equate into productiveness
Creating Effective Appraisal Systems
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
Creating Effective Appraisal Systems
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
Creating Effective Appraisal Systems
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
Creating Effective Appraisal Systems
Rate selectively: appraisers should only rate those areas in which they have job knowledge
Creating Effective Appraisal Systems
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
Measuring Training Effectiveness
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
Measuring Training Effectiveness
Level 2: measures how much participants learned using pre & post testing or by comparing against a group that did not go through the training
Measuring Training Effectiveness
Post training performance method: evaluating training programs based on how well employees can perform their jobs after training
Measuring Training Effectiveness
Pre-Post Training Performance Method: evaluating training programs based on the difference in performance before & after training
Measuring Training Effectiveness
Pre-Post Training performance with control group Method: evaluating training by comparing pre & post training results with individuals
Measuring Training Effectiveness
Level 3: measures whether the training actually changes the employees behavior.
Measuring Training Effectiveness
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
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