Human Resources Management Fundamentals 4.3c

Human Resources – BOH4M

• This is part 2 of a 3-part series on the job managing HR after training.
• Management Fundamentals - Chapter 12

Success Criteria

• Explain types of on-the-job and off-the-job training.
• Describe the significance of performance appraisal.
• Construct performance appraisals using various tools.
• Develop ideal compensation mixes.

Orientation and Training

• A set of activities designed to familiarize new employees with:
  • Their jobs
  • Coworkers
  • Key aspects of the organization.
• Example: The Office – Orientation (a YouTube video link is provided)

On-the-Job Training

• Job Rotation: A job design technique where employees move between two or more jobs in a planned manner. The goal is to expose employees to a variety of skills and experiences, increasing job satisfaction and cross-training.
• Coaching: Specific to performance elements of a particular task or job. Done by someone proficient in the task, often a supervisor or experienced coworker. Hands-on, often involves modeling the task.
• Mentoring: Tends to apply to a broader range of tasks, the whole job. Usually done by an experienced person who takes a new employee under their wing. More hands-off, perhaps monthly meetings.

Off-the-Job Training

• Typically involves management training.
• Companies may send managers to short courses about management.
• Employee retreats are another common off-the-job training method.
• Training can apply to specific job tasks (e.g., software training).

Performance Appraisal (Like Real-Life Report Cards)

• Definition: Formally assessing someone's work accomplishments and providing feedback.
• Purposes:
  • Evaluation: Shows where people stand relative to objectives and standards.
  • Development: Assists in training and continued personal development.

Types of Appraisals

• Graphic rating scales: Uses checklists of traits or characteristics to evaluate performance. Relatively quick and easy to use, but has questionable reliability and validity.
• BARS (Behaviorally Anchored Rating Scales): Describes actual behaviors that exemplify various performance levels in a job. More reliable and valid than graphic rating scales, helpful for employee training.
• Critical Incident Technique: Keeping a record/log of effective and ineffective behaviors. Documents success/failure patterns; however, it can polarize the review process too much, overshadowing middle-range performance.
• Multiperson Comparisons: Formally compares one person's performance to one or more others. Examples include rank ordering, paired comparisons, and forced distributions.

Alternatives to Supervisory Appraisal

• Peer appraisal: Involves people who regularly work with the jobholder.
• Upward appraisal: Involves subordinates reporting to the jobholder.
• 360° feedback: Involves superiors, subordinates, peers, and even internal/external customers.

Compensation

• Compensation is what an employee receives in return for doing a job.
• Two Types:
  • Intrinsic: Non-material benefits, e.g., feeling of fulfillment, achievement, and purpose; great relationships with coworkers
  • Extrinsic: Material benefits, e.g., wages, salary, paid benefits, health plan, benefits, dental plan, paid vacation, pensions

Compensation Mix

• Breakdown of types of compensation into percentages, not dollar amounts. The total amount of pay is irrelevant to this breakdown.
• Examples: 100% wages, 85% salary/15% benefits, 70% commission/30% salary

Compensation Mix Patterns

• Jobs: commission is often used for sales jobs with targets; wages for lower-paying jobs; salary for professional jobs.
• People: Commissions are often preferred by young/highly skilled people willing to take risks; salary is often preferred by people needing stable income (e.g., parents). Benefits become increasingly important for middle to older-aged individuals.

Retention and Turnover

• Retention: Keeping employees.
• Turnover: Losing employees (due to firing, quitting, or retirement). Turnover is expensive due to replacement costs.
• Example: A company might have started the year with 50 employees, and only 45 remained at the end of the year; that is 10% turnover.

Replacement

• The management of promotions, transfers, terminations, layoffs, and retirements/turnover.
• Relates to shifting people within the organization and retirement/termination decisions.

Activity: Compensation Mix

• Work on assigned compensation mix activity.

This quiz focuses on key concepts from Management Fundamentals Chapter 12, emphasizing training methods and performance appraisals in human resources. You'll explore on-the-job and off-the-job training techniques, the significance of performance appraisal, and ideal compensation mixes. Test your knowledge on best practices in managing employee development.