Human Resources Management Fundamentals 4.3c

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Questions and Answers

What is the primary purpose of performance appraisals in HR management?

To assess employee performance and provide feedback (correct)

To identify potential candidates for layoffs

To allocate company resources more effectively

To determine salary increases only

Which of the following best characterizes extrinsic compensation?

Opportunities for personal and professional growth

Recognition and praise from peers and managers

Monetary rewards such as salary and bonuses (correct)

Job satisfaction derived from fulfilling work

What is the Critical Incident Technique primarily used for in performance appraisal?

To measure employee engagement through surveys

To select candidates for employment based on skills

To document specific instances of effective or ineffective performance (correct)

To analyze market trends in compensation packages

Which of the following training methods is categorized as on-the-job training?

Job rotation Signup and view all the answers

What defines intrinsic compensation in the workplace?

Personal satisfaction from job accomplishments Signup and view all the answers

What is one primary purpose of performance appraisals?

To formally assess work accomplishments Signup and view all the answers

Which appraisal method uses specific incidents to evaluate employee performance?

Critical Incidents Technique Signup and view all the answers

What characteristic defines the Graphic Rating Scales method of appraisal?

Use of numerical ratings for various traits Signup and view all the answers

In which training method is the trainer typically a supervisor or experienced coworker?

Coaching Signup and view all the answers

Which approach to performance appraisal emphasizes continuous personal development?

Evaluation Signup and view all the answers

What is a common method used for Off the Job Training?

Software training courses Signup and view all the answers

Which form of appraisal involves comparing performance among multiple employees?

Multiperson Comparison Signup and view all the answers

What best describes the mentoring process compared to coaching?

Mentoring applies to broader job roles compared to coaching. Signup and view all the answers

What makes Behaviorally Anchored Rating Scales (BARS) more reliable than graphic rating scales?

BARS provides written descriptions of behaviors associated with different performance levels. Signup and view all the answers

Which of the following is a significant drawback of the Critical Incident Technique?

It may overly focus on extremes of behavior and miss moderate performance. Signup and view all the answers

Which of the following best describes the goal of peer appraisal in performance evaluations?

To gather insights from colleagues who work closely with the individual being evaluated. Signup and view all the answers

What is the main purpose of using multiperson comparisons in performance appraisals?

To formally compare an individual's performance with that of peers. Signup and view all the answers

What does upward appraisal involve in the context of performance evaluation?

Appraisals from subordinates who report to the jobholder. Signup and view all the answers

Which performance appraisal method keeps a log of effective and ineffective behaviors throughout the year?

Critical Incident Technique. Signup and view all the answers

Which of the following appraisal methods involves input from multiple sources, including peers and customers?

360° feedback. Signup and view all the answers

What is one of the primary characteristics of behaviorally anchored rating scales (BARS)?

They provide written descriptions that correspond to performance levels. Signup and view all the answers

Study Notes

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.

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Description

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.