Career ManagementGroup 2

Masangya, EJMarcaida, AngelaCortez, CharisseAbad, AkikoRoxas, LilianaLingat, PatrickSalcedo, Efrin

Introduction:

• Career Management- the process that plans and shapes the progression of individuals within an organization in accordance

with the organizational needs and objectives, employees performance potential and their preferences.

Purpose of Career ManagementSurround a large number of HRM practices with the following objectives:

• Assisting employees to improve their performance

• Clarifying available career options

• Aligning the aspiration of employees with organizational objectives

Role Players Responsible For Career Management

• Employees

• The employees immediate manager • The manager

• Career Pathing - is informed by the career goals set by individuals during the career planning phase, the career

progression which forms part and parcel of the employees conditions of service as well as the career development opportunities available to employees in an organization.

• It sets out a sequence of posts to which employees can be promoted, transferred and rotated

Career Pathing

Succession Planning

• Succession Planning - is the process related to ensuring that organizations have the human capital capacity necessary to achieve their goals and effectively deliver results now and in the future. Planning for future human capital needs through succession planning is often linked to strategic planning and staff planning.

Aspects of Succession Planning

• First aspect of succession planning includes the need to capture and pass on the expertise, judgment, and insight of senior leaders before they retire.

• Second aspect of succession planning relates to the identification of employees within the organization who have the potential to move into leadership positions.

Components of Planning:• Replacement Planning

this is the primary component of succession planning and, at its simplest, is an identification of employees who may potentially be able to fill positions as they become vacant.• Identifying High-Potential Employee

focuses on identification of employees who have the ability to move into key positions within the organization. In identifying these employees, management must look at critical competencies and characteristics of potential candidates.• Development Programs

includes providing a means for employee development and training. An effective employee development program would involve assessing the skills and development needs of high potential employees, and making provisions for training and development to build specific competency requirements.

Career GrowthCareer Growth means:

• The ability to learn new skills and put them to work

• To work for an industry leader who can provide insight and intelligence on ways to have impact and excel in our industry

• The opportunity to take on new challenges and responsibilities

• Potential to improve my credentials and management skills

Transfers• One of the internal mobility of the employee is transfer. It is lateral

movement of employee in an organization by the employee. “A transfer involves the shifting of an employee from one job to another without changing the responsibilities or compensation”.• Transfers of employees are quite common in all organizations. This can

also be defined as a change in job within the organization where the new job is substantially equal to the old in terms of pay, status and responsibilities. Transfers of employees can possible from one department to another from one plant to another. Transfer may be initiated by the organization or by the employees with the approval of the organization. It can be also due to changes in organizational structure or change in volume of work, it is also necessary due to variety of reasons. But broadly can be done either to suit the conveniences of organization and to suit the convenience of employees.

• One of the internal mobility of the employee is transfer. It is lateral movement of employee in an organization by the employee. “A transfer involves the shifting of an employee from one job to another without changing the responsibilities or compensation”.• Transfers of employees are quite common in all organizations.

This can also be defined as a change in job within the organization where the new job is substantially equal to the old in terms of pay, status and responsibilities. Transfers of employees can possible from one department to another from one plant to another. Transfer may be initiated by the organization or by the employees with the approval of the organization. It can be also due to changes in organizational structure or change in volume of work, it is also necessary due to variety of reasons. But broadly can be done either to suit the conveniences of organization and to suit the convenience of employees.

Purposes of Transfer• The transfer are generally affected to build up a more

satisfactory work team and to achieve the following purposes:•  To increase the effectiveness of the organization.•  To increase the versatility and competency of key positions.•  To deal with fluctuations in work requirements.•  To correct incompatibilities in employee relations.•  To correct, erroneous placement.•  To relieve monotony.•  To adjust workforce.•  To punish employees.

Types of Transfers:• Production Transfer: Such transfers are resorted to when there is a need of manpower

in one department and surplus manpower in other department. Such transfers are made to meet the company requirements. The surplus employees in one department/section might be observed in other place where there is a requirement.

• Replacement Transfers: This takes place to replace a new employee who has been in the organization for a long time and there by giving some relief to an old employee from the heavy pressure of work.

• Remedial Transfers: As the name suggest, these transfers are made to rectify the situation caused by faulty selection and placement procedures. Such transfers are made to rectify mistakes in placement and recruitments. If the initial placement of an individual is faulty or has not adjusted to work/job, his transfer to a more appropriate job is desirable.

• Versatility Transfer: Such transfers are made to increase versatility of the employees from one job to another and one department to another department. Transfer (Job Rotation) are the tool to train the employees. Each employee should provide a varied and broader job experiences by moving from one department to another. This is for preparing the employee for promotion, this will definitely help the employee to have job enrichment.

Performance Appraisal:• Performance Appraisal - is the assessment of

individual’s performance in a systematic way. It is a developmental tool used for all round development of the employee and the organization. The performance is measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility and health. Assessment should be confined to past as well as potential performance also.

Objectives of P.A• The main objective of performance appraisals is to

measure and improve the performance of employees and increase their future potential and value to the company. Other objectives include providing feedback, improving communication, understanding training needs, clarifying roles and responsibilities and determining how to allocate rewards.

Additional objectives:• To review the performance of the employees over a given period of time• To judge the gap between the actual and the desired performance.• To help the management in exercising organizational control.• Helps to strengthen the relationship and communication between superior –

subordinates and management – employees.• To diagnose the strengths and weaknesses of the individuals so as to identify the

training and development needs of the future.• To provide feedback to the employees regarding their past performance.• Provide information to assist in the other personal decisions in the organization.• Provide clarity of the expectations and responsibilities of the functions to be

performed by the employees.• To judge the effectiveness of the other human resource functions of the

organization such as recruitment, selection, training and development.• To reduce the grievances of the employees.

TECHNIQUES / METHODS OF PERFORMANCE APPRAISALS

• Numerous methods have been devised to measure the quantity and quality of performance appraisals. Each of the methods is effective for some purposes for some organizations only. None should be dismissed or accepted as appropriate except as they relate to the particular needs of the organization or an employee.• Broadly all methods of appraisals can be divided into

two different categories.• Past Oriented Methods• Future Oriented Methods

Past Oriented Methods

• 1. Rating Scales: Rating scales consists of several numerical scales representing job related performance criterions such as dependability, initiative, output, attendance, attitude etc. Each scales ranges from excellent to poor. The total numerical scores are computed and final conclusions are derived. Advantages – Adaptability, easy to use, low cost, every type of job can be evaluated, large number of employees covered, no formal training required. Disadvantages – Rater’s biases

• 2. Checklist: Under this method, checklist of statements of traits of employee in the form of Yes or No based questions is prepared. Here the rater only does the reporting or checking and HR department does the actual evaluation. Advantages – economy, ease of administration, limited training required, standardization. Disadvantages – Raters biases, use of improper weighs by HR, does not allow rater to give relative ratings

• 3. Forced Choice Method: The series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false. The rater is forced to make a choice. HR department does actual assessment. Advantages – Absence of personal biases because of forced choice. Disadvantages – Statements may be wrongly framed.

• 4. Forced Distribution Method: here employees are clustered around a high point on a rating scale. Rater is compelled to distribute the employees on all points on the scale. It is assumed that the performance is conformed to normal distribution. Advantages – Eliminates Disadvantages – Assumption of normal distribution, unrealistic, errors of central tendency.

• 5. Critical Incidents Method: The approach is focused on certain critical behaviors of employee that makes all the difference in the performance. Supervisors as and when they occur record such incidents. Advantages – Evaluations are based on actual job behaviors, ratings are supported by descriptions, feedback is easy, reduces recency biases, chances of subordinate improvement are high. Disadvantages – Negative incidents can be prioritized, forgetting incidents, overly close supervision; feedback may be too much and may appear to be punishment.

• 6. Behaviorally Anchored Rating Scales: statements of effective and ineffective behaviors determine the points. They are said to be behaviorally anchored. The rater is supposed to say, which behavior describes the employee performance. Advantages – helps overcome rating errors. Disadvantages – Suffers from distortions inherent in most rating techniques.

• 7. Field Review Method: This is an appraisal done by someone outside employees’ own department usually from corporate or HR department. Advantages – Useful for managerial level promotions, when comparable information is needed, Disadvantages – Outsider is generally not familiar with employees work environment, Observation of actual behaviors not possible.

• 8. Performance Tests & Observations: This is based on the test of knowledge or skills. The tests may be written or an actual presentation of skills. Tests must be reliable and validated to be useful. Advantage – Tests may be apt to measure potential more than actual performance. Disadvantages – Tests may suffer if costs of test development or administration are high.

• 9. Confidential Records: Mostly used by government departments, however its application in industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR) and may record ratings with respect to following items; attendance, self expression, team work, leadership, initiative, technical ability, reasoning ability, originality and resourcefulness etc. The system is highly secretive and confidential. Feedback to the assessee is given only in case of an adverse entry. Disadvantage is that it is highly subjective and ratings can be manipulated because the evaluations are linked to HR actions like promotions etc.

• 10. Essay Method: In this method the rater writes down the employee description in detail within a number of broad categories like, overall impression of performance, promote ability of employee, existing capabilities and qualifications of performing jobs, strengths and weaknesses and training needs of the employee. Advantage – It is extremely useful in filing information gaps about the employees that often occur in a better-structured checklist. Disadvantages – It its highly dependent upon the writing skills of rater and most of them are not good writers. They may get confused success depends on the memory power of raters.

• 11. Cost Accounting Method: Here performance is evaluated from the monetary returns yields to his or her organization. Cost to keep employee, and benefit the organization derives is ascertained. Hence it is more dependent upon cost and benefit analysis.

• 12. Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of different methods that compare performance with that of other co-workers. The usual techniques used may be ranking methods and paired comparison method.

• Ranking Methods: Superior ranks his worker based on merit, from best to worst. However how best and why best are not elaborated in this method. It is easy to administer and explanation.

• Paired Comparison Methods: In this method each employee is rated with another employee in the form of pairs. The number of comparisons may be calculated with the help of a formula as under.

Future Oriented Methods

• 1. Management By Objectives: It means management by objectives and the performance is rated against the achievement of objectives stated by the management. MBO process goes as under.• Establish goals and desired outcomes for each subordinate• Setting performance standards• Comparison of actual goals with goals attained by the employee• Establish new goals and new strategies for goals not achieved in

previous year.• Advantage – It is more useful for managerial positions.• Disadvantages – Not applicable to all jobs, allocation of merit pay

may result in setting short-term goals rather than important and long-term goals etc.

• 2. Psychological Appraisals: These appraisals are more directed to assess employees potential for future performance rather than the past one. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations. It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting his performance. This approach is slow and costly and may be useful for bright young members who may have considerable potential. However quality of these appraisals largely depend upon the skills of psychologists who perform the evaluation.

• 3. Assessment Centers: This technique was first developed in USA and UK in 1943. An assessment center is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is more focused on observation of behaviors across a series of select exercises or work samples. Assessees are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other similar activities which require same attributes for successful performance in actual job. The characteristics assessed in assessment center can be assertiveness, persuasive ability, communicating ability, planning and organizational ability, self confidence, resistance to stress, energy level, decision making, sensitivity to feelings, administrative ability, creativity and mental alertness etc. Disadvantages – Costs of employees traveling and lodging, psychologists, ratings strongly influenced by assessee’s inter-personal skills. Solid performers may feel suffocated in simulated situations. Those who are not selected for this also may get affected.

• Advantages – well-conducted assessment center can achieve better forecasts of future performance and progress than other methods of appraisals. Also reliability, content validity and predictive ability are said to be high in assessment centers. The tests also make sure that the wrong people are not hired or promoted. Finally it clearly defines the criteria for selection and promotion.

• 4. 360-Degree Feedback: It is a technique which is systematic collection of performance data on an individual group, derived from a number of stakeholders like immediate supervisors, team members, customers, peers and self. In fact anyone who has useful information on how an employee does a job may be one of the appraisers. This technique is highly useful in terms of broader perspective, greater self-development and multi-source feedback is useful. 360-degree appraisals are useful to measure inter-personal skills, customer satisfaction and team building skills. However on the negative side, receiving feedback from multiple sources can be intimidating, threatening etc. Multiple raters may be less adept at providing balanced and objective feedback.

ERRORS COMMITED IN

APPRAISALROXAS, Liliana C.

BSLM3A

HRM - Prof. Narciso Isidro Jr.

Since we are all human, it is common for us to make “errors” when assessing employee behavior and writing performance appraisal documents. These errors are reflective of our unconscious biases toward the employee.

These biases can give an employee an unfair advantage or disadvantage over others in their peer group.

ERRORS COMMITED IN APPRAISAL

ERRORS COMMITED IN APPRAISAL

The book, Human Resource Strategy, defines rater errors as being reflective of our imperfect judgment of others. It is for this reason that it is important to understand these biases and take them into consideration when preparing a performance appraisal document.

According to Dreher/Dougherty, “A barrier to the accuracy and credibility of performance measures is posed by a number of rater errors, perceptual biases and other sources of distortion in performance ratings”.

So what are these rater errors?

Halo EffectSince we are all human, it is common for us to make “errors”

when assessing employee behavior and writing performance appraisal documents. These errors are reflective of our unconscious biases toward the employee. These biases can give an employee an unfair advantage or disadvantage over others in their peer group.Halo Effect is when a rater’s overall positive or negative impression of an individual employee leads to rating him or her the same across all rating dimensions.

Halo Effect

This is when a manager really likes or dislikes an employee and allows their personal feelings about this employee to influence their performance ratings of them.

Leniency ErrorLeniency error is when a raters’ tendency is to rate all

employees at the positive end of the scale (positive leniency) or at the low end of the scale (negative leniency).

This can happen when a manager over-emphasizes either positive or negative behaviors.

Central Tendency ErrorCentral tendency error is the raters’ tendency to avoid

making “extreme” judgments of employee performance resulting in rating all employees in the middle part of a scale.

This can happen either when a manager is not comfortable with conflict and avoids low marks to avoid dealing with behavioral issues or when a manager intentionally forces all employees to the middle of the scale.

Recency ErrorRecency error is the rater’s tendency to allow more recent incidents

(either effective or ineffective) of employee behavior to carry too much weight in evaluation of performance over an entire rating period.

This can be extreme on both ends of the spectrum. Either an employee just finishing a major project successfully or an employee may have had a negative incident right before the performance appraisal process and it is on the forefront of the manager’s thoughts about that employee.

It is for this reason that keeping accurate records of performance throughout the year to refer back to during performance appraisal time is so important.

First Impression ErrorFirst impression error is the rater’s tendency to let their first

impression of an employee’s performance carry too much weight in evaluation of performance over an entire rating period.

An example of this would be a new employee joining the organization and performing at high levels during their “honeymoon” period and then possibly losing some of that initial momentum.

Similar-to-me ErrorSimilar-to-me error is when the rater’s tendency is

biased in performance evaluation toward those employees seen as similar to the raters themselves. We can all relate to people who are like us but cannot let our ability to relate to someone influence our rating of their employee performance.

Since human biases can easily influence the rating process, it is important to create objective measures for rating performance. Observing behaviors and using available technology to help track performance can take some of the biases out of the rating process.

Criteria for Good Appraisal

• In choosing an appraisal system, HR professionals should consider their own organization's needs for performance appraisal. Key considerations are (1) whom the company should evaluate, and (2) what criteria should be used to evaluate.

• Whom Company Should Evaluate First, the organization must determine which employees in what types of jobs should be evaluated. Whom the organization needs to evaluate has implications for the type of system chosen. For example, a system that effectively appraises managerial performance would be quite different from a system evaluating the performance of clerical workers. Different jobs place different demands on appraisal systems. Jobs that are difficult to describe or that vary substantially in terms of activities and tasks create difficulties in terms of appraising performance.

• What criteria should be used to evaluate Next, an organization must decide what criteria it will use for evaluation. Does it want a system based on evaluating individual traits, behaviors, or job results? This decision depends in part on who is being evaluated and how the organization intends to use the performance appraisal.

• TRAIT 

• Early graphic rating scales evaluated workers on individual traits or personal characteristics which were presumably related to job performance. Initiative, aggressiveness, reliability, and personality are examples of traits on which employees have been rated. One problem with trait rating is that the traits themselves are difficult to define and may be subject to varying interpretation by evaluators.

• BEHAVIOR 

•Rating employees according to job behaviors is based on the assumption that there are effective and ineffective behaviors and that these have been identified for each job or type of job. Behaviors are judged effective or ineffective in terms of the results the behaviors produce (either desirable or undesirable). For example, a customer service representative could be judged on the amount of patience shown to irate customers. Evaluating employees along behavioral dimensions is especially important for employee development purposes.

• JOB RESULT 

•Results indexes are often used for appraisal purposes if an employee's job has measurable results. Examples of job results indexes are dollar volume of sales, amount of scrap, and quantity and quality of work produced. When such quantitative results are not available, evaluators tend to use appraisal forms based on employee behaviors and/or personal characteristics. In some cases, appraisals may of necessity focus on results rather than behaviors. This is especially true where job content is highly variable, as in many managerial positions, thus making it difficult to specify appropriate behaviors for evaluative purposes. Results indexes such as turnover, absenteeism, grievances, profitability, and production rates can be used to evaluate the performance of organization units.