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11 11 Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Human Resource Management Management
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11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

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Page 1: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

1111Chapter

PowerPoint Presentation by Charlie Cook© Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved.

Human Resource Human Resource ManagementManagement

Page 2: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–2

Learning ObjectivesLearning ObjectivesLearning ObjectivesLearning Objectives

• After studying the chapter, you should be able to:After studying the chapter, you should be able to:Explain why strategic human resource Explain why strategic human resource

management can help an organization gain a management can help an organization gain a competitive advantage.competitive advantage.

Describe the steps managers take to recruit Describe the steps managers take to recruit and select organizational members.and select organizational members.

Discuss the training and development Discuss the training and development options that ensure organization members options that ensure organization members can effectively perform their jobs.can effectively perform their jobs.

Page 3: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–3

Learning Objectives (cont’d)Learning Objectives (cont’d)Learning Objectives (cont’d)Learning Objectives (cont’d)

Explain why performance appraisal and Explain why performance appraisal and feedback is such a crucial activity, and list feedback is such a crucial activity, and list the choices managers must make in the choices managers must make in designing effective performance appraisal designing effective performance appraisal and feedback procedures.and feedback procedures.

Explain the issues managers face in Explain the issues managers face in determining in determining levels of pay and determining in determining levels of pay and benefitsbenefits

Page 4: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–4

Chapter OutlineChapter OutlineChapter OutlineChapter Outline

• Strategic Human Resource ManagementStrategic Human Resource ManagementAn Overview of the Components of HRMAn Overview of the Components of HRMThe Legal EnvironmentThe Legal Environment

• Recruitment and SelectionRecruitment and SelectionHuman Resource PlanningHuman Resource PlanningJob AnalysisJob AnalysisExternal and Internal RecruitmentExternal and Internal RecruitmentThe Selection ProcessThe Selection Process

• Training and DevelopmentTraining and DevelopmentTypes of TrainingTypes of Training

Page 5: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–5

Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)

• Training and Development (cont’d)Training and Development (cont’d)Types of DevelopmentTypes of DevelopmentTransfer of Training and DevelopmentTransfer of Training and Development

• Performance Appraisal and FeedbackPerformance Appraisal and FeedbackTypes of Performance AppraisalTypes of Performance AppraisalWho Appraises PerformanceWho Appraises PerformanceEffective Performance FeedbackEffective Performance Feedback

• Pay and BenefitsPay and BenefitsPay LevelPay LevelPay StructurePay Structure

Page 6: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–6

Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)Chapter Outline (cont’d)

• Pay and Benefits (cont’d)Pay and Benefits (cont’d)BenefitsBenefits

• Labor RelationsLabor RelationsUnionsUnionsCollective BargainingCollective Bargaining

Page 7: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–7

Strategic Human Resource Strategic Human Resource ManagementManagement

Strategic Human Resource Strategic Human Resource ManagementManagement

• Human Resource Management (HRM)Human Resource Management (HRM)Activities that managers engage in to attract Activities that managers engage in to attract

and retain employees and to ensure that and retain employees and to ensure that they perform at a high level and contribute to they perform at a high level and contribute to the accomplishment of organizational goals.the accomplishment of organizational goals.

• HRM activitiesHRM activitiesRecruitment and selectionRecruitment and selectionTraining and developmentTraining and developmentPerformance appraisal and feedbackPerformance appraisal and feedbackPay and benefitsPay and benefitsLabor relationsLabor relations

Page 8: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–8

Strategic Human Resource Strategic Human Resource ManagementManagement

Strategic Human Resource Strategic Human Resource ManagementManagement

• Strategic Human Resource ManagementStrategic Human Resource ManagementThe process by which managers design the The process by which managers design the

components of a human resource system to components of a human resource system to be consistent with each other, with other be consistent with each other, with other elements of organizational structure, and elements of organizational structure, and with the organization’s strategy and goals.with the organization’s strategy and goals.

• The objective of strategic HRM is the development of The objective of strategic HRM is the development of an HRM system that enhances the organization’s an HRM system that enhances the organization’s efficiency, quality, innovation, and responsiveness to efficiency, quality, innovation, and responsiveness to customers.customers.

Page 9: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–9

Components of a Components of a Human Resource Human Resource

Management Management SystemSystem

Components of a Components of a Human Resource Human Resource

Management Management SystemSystem

Figure 11.1

Page 10: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–10

Overview of the Components of HRMOverview of the Components of HRMOverview of the Components of HRMOverview of the Components of HRM

• Recruitment and SelectionRecruitment and SelectionDeveloping a pool of qualified applicants.Developing a pool of qualified applicants.Determining relative qualifications of Determining relative qualifications of

applicants and and their potential for a job. applicants and and their potential for a job.

• Training and DevelopmentTraining and DevelopmentDeveloping, on an ongoing basis, employees’ Developing, on an ongoing basis, employees’

abilities and skills as necessitated by abilities and skills as necessitated by changes in technology and the competitive changes in technology and the competitive environment.environment.

Page 11: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–11

Overview of HRM Components Overview of HRM Components (cont’d)(cont’d)

Overview of HRM Components Overview of HRM Components (cont’d)(cont’d)

• Performance Appraisal and FeedbackPerformance Appraisal and FeedbackProviding information about how to train, Providing information about how to train,

motivate, and reward workers such that motivate, and reward workers such that managers can evaluate and then give managers can evaluate and then give feedback to enhance worker performance.feedback to enhance worker performance.

• Pay and BenefitsPay and BenefitsRewarding high performing employees with Rewarding high performing employees with

raises, bonuses and recognition. raises, bonuses and recognition. • Increased pay provides additional incentive. Increased pay provides additional incentive.

• Benefits, such as health insurance, reward Benefits, such as health insurance, reward membership in firm.membership in firm.

Page 12: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–12

Overview of HRM Components Overview of HRM Components (cont’d)(cont’d)

Overview of HRM Components Overview of HRM Components (cont’d)(cont’d)

• Labor relationsLabor relationsMaintaining an effective relationship with Maintaining an effective relationship with

labor unions that represent workers.labor unions that represent workers.• Unions seek to participate, through collective Unions seek to participate, through collective

bargaining, in the determination of pay rates and the bargaining, in the determination of pay rates and the setting of working conditions.setting of working conditions.

Page 13: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–13

The Legal Environment of HRM The Legal Environment of HRM The Legal Environment of HRM The Legal Environment of HRM

• Equal Employment Opportunity (EEO)Equal Employment Opportunity (EEO)The equal right of all citizens to the The equal right of all citizens to the

opportunity to obtain employment regardless opportunity to obtain employment regardless of their gender, age, race, country of origin, of their gender, age, race, country of origin, religion, or disabilities.religion, or disabilities.

Equal Employment Opportunity Commission Equal Employment Opportunity Commission (EEOC) enforces employment laws.(EEOC) enforces employment laws.

• Management of diversity is crucialManagement of diversity is crucial

• Managers must take steps to ensure discrimination Managers must take steps to ensure discrimination does not occur.does not occur.

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© Copyright McGraw-Hill. All rights reserved. 11–14

Recruitment and SelectionRecruitment and SelectionRecruitment and SelectionRecruitment and Selection

• RecruitmentRecruitmentActivities that managers engage in to Activities that managers engage in to

develop a pool of candidates for open develop a pool of candidates for open positions.positions.

• SelectionSelectionThe process that managers use to determine The process that managers use to determine

the relative qualifications of job applicants the relative qualifications of job applicants and their potential for performing well in a and their potential for performing well in a particular job.particular job.

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© Copyright McGraw-Hill. All rights reserved. 11–15

Human Resource PlanningHuman Resource PlanningHuman Resource PlanningHuman Resource Planning

• Human Resource Planning (HRP)Human Resource Planning (HRP)Activities that managers engage in to Activities that managers engage in to

forecast their current and future needs for forecast their current and future needs for human resources.human resources.

HRP must be done prior to recruitment and HRP must be done prior to recruitment and selectionselection

Demand forecastsDemand forecasts• Estimates of the number and qualifications of Estimates of the number and qualifications of

employees the firm will need.employees the firm will need.

Supply forecastsSupply forecasts• Estimates of the availability and qualifications of Estimates of the availability and qualifications of

current workers and those in the labor market.current workers and those in the labor market.

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© Copyright McGraw-Hill. All rights reserved. 11–16

The Recruitment and Selection SystemThe Recruitment and Selection SystemThe Recruitment and Selection SystemThe Recruitment and Selection System

Figure 11.2

Page 17: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–17

Human Resource Planning: Human Resource Planning: OutsourcingOutsourcing

Human Resource Planning: Human Resource Planning: OutsourcingOutsourcing

• OutsourcingOutsourcingUsing outside suppliers and manufacturers to Using outside suppliers and manufacturers to

produce goods and servicesproduce goods and servicesUsing contract workers rather than hiring them.Using contract workers rather than hiring them.

• Outsourcing is more flexible for the firm.Outsourcing is more flexible for the firm.

• Outsourcing provides human capital at a lower cost.Outsourcing provides human capital at a lower cost.

• Problems with OutsourcingProblems with OutsourcingLoss of control over output; outsource Loss of control over output; outsource

contractors are not committed to the firm.contractors are not committed to the firm.Unions are against outsourcing that has Unions are against outsourcing that has

potential to eliminate member’s jobs.potential to eliminate member’s jobs.

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© Copyright McGraw-Hill. All rights reserved. 11–18

Job AnalysisJob AnalysisJob AnalysisJob Analysis

• Job analysisJob analysisIdentifying the the tasks, duties and Identifying the the tasks, duties and

responsibilities that make up a job and the responsibilities that make up a job and the knowledge, skills, and abilities needed to knowledge, skills, and abilities needed to perform the job.perform the job.

A job analysis should be done for each job in the A job analysis should be done for each job in the organization.organization.

Job analysis methods:Job analysis methods:• Observing what current workers do.Observing what current workers do.

• Having workers and manages fill out questionnaires.Having workers and manages fill out questionnaires.

Current trend is toward flexible jobs where tasks Current trend is toward flexible jobs where tasks and duties are not easily defined in advance.and duties are not easily defined in advance.

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© Copyright McGraw-Hill. All rights reserved. 11–19

RecruitmentRecruitmentRecruitmentRecruitment

• External RecruitingExternal RecruitingSeeking outside the firm for people who have Seeking outside the firm for people who have

not worked at the firm previously.not worked at the firm previously.• Newspapers advertisements, open houses, on-Newspapers advertisements, open houses, on-

campus recruiting, employee referrals, and through campus recruiting, employee referrals, and through the Internet.the Internet.

External recruitment is difficult since many External recruitment is difficult since many new jobs have specific skill needs.new jobs have specific skill needs.

• A multi-prong approach to external recruiting works A multi-prong approach to external recruiting works best.best.

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© Copyright McGraw-Hill. All rights reserved. 11–20

RecruitmentRecruitmentRecruitmentRecruitment

• Internal RecruitingInternal RecruitingSeeking to fill open positions with current Seeking to fill open positions with current

employees from within the firm.employees from within the firm.Benefits of internal recruiting:Benefits of internal recruiting:

• Job candidates, their qualifications, and availability Job candidates, their qualifications, and availability are already known.are already known.

• Current employees know the firm’s culture and are Current employees know the firm’s culture and are familiar with the organization.familiar with the organization.

• Internal advancement (promotion from within) can Internal advancement (promotion from within) can serve to motivate employees.serve to motivate employees.

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© Copyright McGraw-Hill. All rights reserved. 11–21

Honesty in HiringHonesty in HiringHonesty in HiringHonesty in Hiring

• The temptation to over-rate and oversell the The temptation to over-rate and oversell the attractiveness of the job and firm.attractiveness of the job and firm.Managers may feel that if they are honest, an Managers may feel that if they are honest, an

applicant may not be willing to work there.applicant may not be willing to work there.• Research indicates this is a poor strategy.Research indicates this is a poor strategy.

• Realistic Job PreviewRealistic Job PreviewProviding an honest assessment of the Providing an honest assessment of the

advantage and disadvantages of a job and advantage and disadvantages of a job and organization.organization.

• Avoids hiring, training and then losing an employee Avoids hiring, training and then losing an employee because as applicants, they misperceived the job before because as applicants, they misperceived the job before agreeing to come to work.agreeing to come to work.

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© Copyright McGraw-Hill. All rights reserved. 11–22

Selection ToolsSelection ToolsSelection ToolsSelection Tools

Figure 11.3

Page 23: 11Chapter PowerPoint Presentation by Charlie Cook © Copyright The McGraw-Hill Companies, Inc., 2003. All rights reserved. Human Resource Management.

© Copyright McGraw-Hill. All rights reserved. 11–23

The Selection ProcessThe Selection ProcessThe Selection ProcessThe Selection Process

• Determining an applicant’s qualifications Determining an applicant’s qualifications related to the job requirementsrelated to the job requirementsBackground informationBackground information

• Education, prior employment, and college majorEducation, prior employment, and college major

InterviewsInterviews• Structured interviews where managers ask each Structured interviews where managers ask each

applicant the same job-related questions.applicant the same job-related questions.

• Unstructured interviews that resemble normal Unstructured interviews that resemble normal conversations. conversations.

• Usually structured interviews preferred; bias is Usually structured interviews preferred; bias is possible in unstructured interviews.possible in unstructured interviews.

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© Copyright McGraw-Hill. All rights reserved. 11–24

The Selection Process (cont’d)The Selection Process (cont’d)The Selection Process (cont’d)The Selection Process (cont’d)

• Determining an applicant’s qualifications Determining an applicant’s qualifications related to the job requirements (cont’d)related to the job requirements (cont’d)Physical ability testsPhysical ability tests

• Measures of dexterity, strength, and stamina for Measures of dexterity, strength, and stamina for physically demanding jobsphysically demanding jobs

• Measures must be job related to avoid discrimination.Measures must be job related to avoid discrimination.

Paper-and-Pencil TestsPaper-and-Pencil Tests• Ability tests assess if applicants have the right skills Ability tests assess if applicants have the right skills

for the job.for the job.

• Personality tests seek to determine if applicants Personality tests seek to determine if applicants possess traits relevant to job performance.possess traits relevant to job performance.

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© Copyright McGraw-Hill. All rights reserved. 11–25

Selection ProcessSelection ProcessSelection ProcessSelection Process

• Determining an applicant’s qualifications Determining an applicant’s qualifications related to the job requirements (cont’d)related to the job requirements (cont’d)Performance TestsPerformance Tests

• Tests that measure an applicant’s current ability to Tests that measure an applicant’s current ability to perform the job or part of the job such as requiring an perform the job or part of the job such as requiring an applicant to take typing speed test.applicant to take typing speed test.

• Assessment centers are facilities where managerial Assessment centers are facilities where managerial candidates are assessed on job-related activities over candidates are assessed on job-related activities over a period of a few days.a period of a few days.

ReferencesReferences• Obtaining relevant information can be difficult to due Obtaining relevant information can be difficult to due

to legal liability and privacy issuesto legal liability and privacy issues

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© Copyright McGraw-Hill. All rights reserved. 11–26

Reliability and ValidityReliability and ValidityReliability and ValidityReliability and Validity

• Selection tools must be reliable and valid.Selection tools must be reliable and valid.Reliability is the degree to which the tool Reliability is the degree to which the tool

measures the same thing each time it is used.measures the same thing each time it is used.• Example: scores should be similar for the same person Example: scores should be similar for the same person

taking the same test over time.taking the same test over time.

Validity is the degree to which the test Validity is the degree to which the test measures what it is supposed to measuremeasures what it is supposed to measure

• Example: how well a physical ability test predicts the job Example: how well a physical ability test predicts the job performance of a firefighter.performance of a firefighter.

Managers have both an ethical obligation and a Managers have both an ethical obligation and a legal duty to develop good selection tools.legal duty to develop good selection tools.

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© Copyright McGraw-Hill. All rights reserved. 11–27

Training and DevelopmentTraining and DevelopmentTraining and DevelopmentTraining and Development

• TrainingTrainingTeaching organizational members how to Teaching organizational members how to

perform current jobs and helping them to perform current jobs and helping them to acquire the knowledge and skills they need acquire the knowledge and skills they need to be effective performers.to be effective performers.

• DevelopmentDevelopmentBuilding the knowledge and skills of Building the knowledge and skills of

organizational members to enable them to organizational members to enable them to take on new duties and challenges.take on new duties and challenges.

• Training is used more often at lower levels of Training is used more often at lower levels of firm; development is common with managers.firm; development is common with managers.

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© Copyright McGraw-Hill. All rights reserved. 11–28

Training and Development: Needs Training and Development: Needs AssessmentAssessment

Training and Development: Needs Training and Development: Needs AssessmentAssessment

• Needs AssessmentNeeds AssessmentAn assessment of which employees need training or An assessment of which employees need training or

development and what type of skills or knowledge development and what type of skills or knowledge they need to acquire. they need to acquire.

Figure 11.4Source:

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© Copyright McGraw-Hill. All rights reserved. 11–29

Types of TrainingTypes of TrainingTypes of TrainingTypes of Training

• Classroom InstructionClassroom InstructionEmployees acquire skills in a classroom Employees acquire skills in a classroom

setting.setting.• Includes use of videos, role-playing, and simulations.Includes use of videos, role-playing, and simulations.

• On-the-Job TrainingOn-the-Job TrainingEmployee learning occurs in the work setting Employee learning occurs in the work setting

as new worker does the job.as new worker does the job.• Training is given by co-workers and can be done Training is given by co-workers and can be done

continuously to update the skills of current continuously to update the skills of current employees.employees.

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© Copyright McGraw-Hill. All rights reserved. 11–30

Types of DevelopmentTypes of DevelopmentTypes of DevelopmentTypes of Development

• Varied Work ExperiencesVaried Work ExperiencesTop managers have need to and must build Top managers have need to and must build

expertise in many areas.expertise in many areas.• Employees identified as possible top managers are Employees identified as possible top managers are

assigned different tasks and a variety of positions in assigned different tasks and a variety of positions in an organization.an organization.

• Formal EducationFormal EducationTuition reimbursement is common for Tuition reimbursement is common for

managers taking classes for MBA or job-managers taking classes for MBA or job-related degrees.related degrees.

• Long-distance learning can also be used to reduce Long-distance learning can also be used to reduce travel and other expenses for managerial training.travel and other expenses for managerial training.

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© Copyright McGraw-Hill. All rights reserved. 11–31

Performance Appraisal and FeedbackPerformance Appraisal and FeedbackPerformance Appraisal and FeedbackPerformance Appraisal and Feedback

• Performance AppraisalPerformance AppraisalThe evaluation of employees’ job The evaluation of employees’ job

performance and contributions to their performance and contributions to their organization.organization.

• Performance FeedbackPerformance FeedbackThe process through which managers share The process through which managers share

performance appraisal information, give performance appraisal information, give subordinates and opportunity to reflect on subordinates and opportunity to reflect on their own performance, and develop, with their own performance, and develop, with subordinates, plans for the future.subordinates, plans for the future.

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© Copyright McGraw-Hill. All rights reserved. 11–32

Performance Appraisal and FeedbackPerformance Appraisal and FeedbackPerformance Appraisal and FeedbackPerformance Appraisal and Feedback

• Trait AppraisalsTrait AppraisalsAssessing subordinates on personal Assessing subordinates on personal

characteristics that are relevant to job characteristics that are relevant to job performance.performance.

Disadvantages of trait appraisalsDisadvantages of trait appraisals• Employees with a particular trait may choose not to Employees with a particular trait may choose not to

use that particular trait on the job.use that particular trait on the job.

• Traits and performance are not always obviously Traits and performance are not always obviously linkedlinked

• It is difficult to give feedback on traits.It is difficult to give feedback on traits.

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© Copyright McGraw-Hill. All rights reserved. 11–33

Performance Appraisal and FeedbackPerformance Appraisal and FeedbackPerformance Appraisal and FeedbackPerformance Appraisal and Feedback

• Behavior AppraisalsBehavior AppraisalsAssesses how workers perform their jobsAssesses how workers perform their jobs——

the actual actions and behaviors that the actual actions and behaviors that exhibit exhibit on the job.on the job.

Focuses on what a worker does right and Focuses on what a worker does right and wrong and provides good feedback for wrong and provides good feedback for employees to change their behaviors.employees to change their behaviors.

• Results appraisalsResults appraisalsAssesses what a worker accomplishes or the Assesses what a worker accomplishes or the

results they obtain from performing their results they obtain from performing their jobs.jobs.

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© Copyright McGraw-Hill. All rights reserved. 11–34

Performance Appraisal and FeedbackPerformance Appraisal and FeedbackPerformance Appraisal and FeedbackPerformance Appraisal and Feedback

• Objective appraisalsObjective appraisalsAssesses performance based on facts (e.g., Assesses performance based on facts (e.g.,

sales figures).sales figures).

• Subjective appraisalsSubjective appraisalsAssessments based on a manager’s Assessments based on a manager’s

perceptions of traits, behavior, or results.perceptions of traits, behavior, or results.• Graphic rating scalesGraphic rating scales

• Behaviorally anchored rating scales (BARS)Behaviorally anchored rating scales (BARS)

• Behavior observation scales (BOS)Behavior observation scales (BOS)

• Forced ranking systemsForced ranking systems

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© Copyright McGraw-Hill. All rights reserved. 11–35

Subject Measures of Performance:Subject Measures of Performance: Graphic Rating Scale Graphic Rating Scale

Subject Measures of Performance:Subject Measures of Performance: Graphic Rating Scale Graphic Rating Scale

Figure 11.5a

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© Copyright McGraw-Hill. All rights reserved. 11–36

Subject Measures of Performance:Subject Measures of Performance: Behaviorally Anchored Rating Scale (BARS) Behaviorally Anchored Rating Scale (BARS)

Subject Measures of Performance:Subject Measures of Performance: Behaviorally Anchored Rating Scale (BARS) Behaviorally Anchored Rating Scale (BARS)

Figure 11.5b

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© Copyright McGraw-Hill. All rights reserved. 11–37

Subject Measures of Performance:Subject Measures of Performance: Behavioral Observation Scale (BOS) Behavioral Observation Scale (BOS)Subject Measures of Performance:Subject Measures of Performance:

Behavioral Observation Scale (BOS) Behavioral Observation Scale (BOS)

Figure 11.5c

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© Copyright McGraw-Hill. All rights reserved. 11–38

Who Appraises Performance?Who Appraises Performance?Who Appraises Performance?Who Appraises Performance?

Figure 11.6

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© Copyright McGraw-Hill. All rights reserved. 11–39

Who Appraises Performance? (cont’d)Who Appraises Performance? (cont’d)Who Appraises Performance? (cont’d)Who Appraises Performance? (cont’d)

• SelfSelfSelf appraisals can supplement manager Self appraisals can supplement manager

view.view.

• Peer appraisalPeer appraisalCoworkers provide appraisal; common in Coworkers provide appraisal; common in

team settings.team settings.

• 360 Degree360 DegreeA performance appraisal by peers, A performance appraisal by peers,

subordinates, superiors, and clients who are subordinates, superiors, and clients who are in a position to evaluate a manager’s in a position to evaluate a manager’s performanceperformance

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© Copyright McGraw-Hill. All rights reserved. 11–40

Effective Performance FeedbackEffective Performance FeedbackEffective Performance FeedbackEffective Performance Feedback

• Formal appraisalsFormal appraisalsAn appraisal conducted at a set time during An appraisal conducted at a set time during

the year and based on performance the year and based on performance dimensions that were specified in advancedimensions that were specified in advance

• Informal appraisalsInformal appraisalsAn unscheduled appraisal of ongoing An unscheduled appraisal of ongoing

progress and areas for improvementprogress and areas for improvement

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© Copyright McGraw-Hill. All rights reserved. 11–41

Effective Feedback TipsEffective Feedback TipsEffective Feedback TipsEffective Feedback Tips

• Be specific and focus on correctable behavior. Be specific and focus on correctable behavior. Provide a suggested improvement.Provide a suggested improvement.

• Focus on problem-solving and improvement, Focus on problem-solving and improvement, not criticism.not criticism.

• Express confidence in worker’s ability to Express confidence in worker’s ability to improve.improve.

• Use both formal and informal feedback.Use both formal and informal feedback.

• Treat subordinates with respect and praise Treat subordinates with respect and praise achievements.achievements.

• Set a timetable for agreed changes.Set a timetable for agreed changes.

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© Copyright McGraw-Hill. All rights reserved. 11–42

Pay and BenefitsPay and BenefitsPay and BenefitsPay and Benefits

• Pay levelPay levelThe relative position of an organization’s The relative position of an organization’s

incentives in comparison with those of other incentives in comparison with those of other firms in the same industry employing similar firms in the same industry employing similar kinds of workerskinds of workers

• Managers can decide to offer low, average or high Managers can decide to offer low, average or high relative wages.relative wages.

• High wages attract and retain high performers but High wages attract and retain high performers but raise costs; low wages can cause turnover and lack raise costs; low wages can cause turnover and lack of motivation but provide lower costs.of motivation but provide lower costs.

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© Copyright McGraw-Hill. All rights reserved. 11–43

Pay and Benefits (cont’d)Pay and Benefits (cont’d)Pay and Benefits (cont’d)Pay and Benefits (cont’d)

• Pay StructurePay StructureThe arrangement of jobs into categories based The arrangement of jobs into categories based

on their relative importance to the organization on their relative importance to the organization and its goals, level of skills, and other and its goals, level of skills, and other characteristics.characteristics.

• BenefitsBenefitsLegally required: social security, workers’ Legally required: social security, workers’

compensationcompensationVoluntary: health insurance, retirement, day careVoluntary: health insurance, retirement, day careCafeteria-style benefits plans allow employees to Cafeteria-style benefits plans allow employees to

choose the best mix of benefits for them; can be choose the best mix of benefits for them; can be hard to manage.hard to manage.

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Labor RelationsLabor RelationsLabor RelationsLabor Relations

• Labor RelationsLabor RelationsThe activities managers engage in to ensure The activities managers engage in to ensure

they have effective working relationships they have effective working relationships with the labor unions that represent their with the labor unions that represent their employees interests.employees interests.

Laws regulating areas of employment.Laws regulating areas of employment.• Fair Labor Standards Act (1938) prohibits child labor, Fair Labor Standards Act (1938) prohibits child labor,

sets a minimum wage and maximum working hours.sets a minimum wage and maximum working hours.

• Equal Pay Act (1963) men and women doing equal Equal Pay Act (1963) men and women doing equal work will get equal pay.work will get equal pay.

• Work Place Safety (1970) OSHA mandates Work Place Safety (1970) OSHA mandates procedures for safe working conditions.procedures for safe working conditions.

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UnionsUnionsUnionsUnions

• UnionsUnionsRepresent worker’s interests to management Represent worker’s interests to management

in organizations.in organizations.The power that managers has over an The power that managers has over an

individual worker causes workers to join individual worker causes workers to join together in unions to try to prevent this.together in unions to try to prevent this.

• Unions are permitted by the National Labor Relations Unions are permitted by the National Labor Relations Act (1935) which also created the NLRB to oversee Act (1935) which also created the NLRB to oversee the relationship between employers and unions.the relationship between employers and unions.

• Not all workers want unions. Union membership costs Not all workers want unions. Union membership costs money in dues and workers might not want to strike.money in dues and workers might not want to strike.

• Union membership is lower today than 40 years ago.Union membership is lower today than 40 years ago.

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Unions (cont’d)Unions (cont’d)Unions (cont’d)Unions (cont’d)

• Collective bargainingCollective bargainingNegotiation between labor and management Negotiation between labor and management

to resolve conflicts and disputes about issues to resolve conflicts and disputes about issues such as working hours, wages, benefits, such as working hours, wages, benefits, working conditions, and job security.working conditions, and job security.

The process that unions and management go The process that unions and management go through to negotiate work agreements that through to negotiate work agreements that are included in a contract which spells out are included in a contract which spells out agreed-upon terms such as the grievance agreed-upon terms such as the grievance procedure for resolving differences between procedure for resolving differences between the union and management over the union and management over management’s administration of the management’s administration of the contract.contract.