BOH4M Human Resources Training to Compensation PDF

Human Resources – BOH4M Part 2 of 3: On The Job Managing HR After Training Management Fundamentals - Chapter 12 1 Success Criteria I can explain types of on-the-job and off-the-job training. I can describe the significance of performance appraisal. I can cons...

Human Resources – BOH4M Part 2 of 3: On The Job Managing HR After Training Management Fundamentals - Chapter 12 1 Success Criteria I can explain types of on-the-job and off-the-job training. I can describe the significance of performance appraisal. I can construct performance appraisals using a variety of tools. I can develop ideal compensation mixes. Management Fundamentals - Chapter 12 2 ORIENTATION AND TRAINING Management Fundamentals - Chapter 12 3 Study Question 4: How do organizations develop a quality workforce? Orientation – Set of activities designed to familiarize new employees with their jobs, coworkers, and key aspects of the organization. – The Office – Orientation: – https://www.youtube.com/watch?v=-xbeQ5ziyXM Management Fundamentals - Chapter 12 4 Study Question 4: How do organizations develop a quality workforce? Orientation On-the-job training Introduction to a – Job rotation company, their values, – Coaching beliefs, and basic issues – Mentoring that apply to every job – Modeling Training Off-the-job training A set of activities that – Management development provides the opportunity to acquire and improve job-related skills Management Fundamentals - Chapter 12 5 On-The-Job Training Job Rotation – A job design technique in which employees are moved between two or more jobs in a planned manner. – The objective is to expose the employees to different experiences and wider variety of skills to enhance job satisfaction and to cross-train them. Management Fundamentals - Chapter 12 6  On-The-Job Training Coaching Mentoring – Is specific usually more Tends to apply to a broader set of specific to the performance tasks; applies to the job as a elements of a particular job or whole task – Can be done by anyone who is proficient at that task; Usually done by someone who is typically an immediate experiences; take a new employee supervisor or experienced under their wing coworker – Very hands-on; often involves modelling of how the task Very hands off; maybe monthly should be done meetings Management Fundamentals - Chapter 12 7 Off the Job Training Training that takes place away from the job site The most typical form is management training – A company may send a manager (or potential manager) away to take a short course about management – Employee retreats is another common way to do this – Training could apply to a job task also (e.g., software training Management Fundamentals - Chapter 12 8 Training and Mentoring Volunteers Does anybody have something they could train the whole class to do? 9 PERFORMANCE APPRAISAL (LIKE REAL-LIFE REPORT CARDS) Management Fundamentals - Chapter 12 10  Performance Appraisal – DEFINITION: Formally assessing someone’s work accomplishments and providing feedback. – Purposes of performance appraisal: Evaluation — lets people know where they stand relative to objectives and standards. Development — assists in training and continued personal development of people. Management Fundamentals - Chapter 12 11 Discussion in Small Groups Imagine the style of report card that you are given every semester. 1. As a manager, should you give your employees the same style of report card for their performance appraisal? 2. Why or why not? 3. What should be different? Management Fundamentals - Chapter 12 12 Types of Appraisals 1. Graphic rating scales 2. BARS 3. Critical Incidents Technique 4. Multiperson Comparison Management Fundamentals - Chapter 12 13 Types of Appraisals Graphic rating scales – Uses checklists of traits or characteristics to evaluate performance. Learning Skills Self Assessment – Relatively quick, easy to use, and the most common method. – Questionable reliability and validity. Management Fundamentals - Chapter 12 14 Graphic Rating Scale – Example Management Fundamentals - Chapter 12 15 BARS Behaviorally anchored rating scales (BARS) – Describes actual behaviors that exemplify various levels of performance achievement in a job. – It is similar to a graphic rating scale; however, with a BARS you are giving written descriptions to what each number on the checklist represents. – More reliable and valid than graphic rating scales. – Helpful in training people to master important job skills. Management Fundamentals - Chapter 12 16 Figure 12.4 Sample behaviorally anchored rating scale for performance appraisal. Management Fundamentals - Chapter 12 17 Critical Incident Technique Critical-incident techniques – Keeping a running log or inventory of effective and ineffective behaviors. – Documents success or failure patterns. – Here, a manager records events (incidents) that are either effective or ineffective throughout the year. – A problem is that it tends to polarize the review. In other words, it overly records the very good and very bad behaviours while it under-records the behaviours that falls somewhere in the middle. Management Fundamentals - Chapter 12 18  Multiperson comparisons – Formally compare one person’s performance with that of one or more other person. – Types of multiperson comparisons: Rank ordering Paired comparisons Forced distributions Management Fundamentals - Chapter 12 19 Study Question 4: How do organizations develop a quality workforce? Alternatives to supervisory appraisal: – Peer appraisal Occurs when people who work regularly and directly with a jobholder are involved in the appraisal. – Upward appraisal Occurs when subordinates reporting to the jobholder are involved in the appraisal. – 360° feedback Occurs when superiors, subordinates, peers, and even internal and external customers are involved in the appraisal of a jobholder’s performance. Management Fundamentals - Chapter 12 20 How to DELIVER Appraisals 4:13-5:04 10:30-12:51 – As you watch, record 2 pieces of advice that apply to delivering a performance appraisal. Management Fundamentals - Chapter 12 21 COMPENSATION Management Fundamentals - Chapter 12 22 Compensation Compensation is what an employee receives in return for doing a job. There are two types of compensation: – Intrinsic Compensation – nonmaterial job benefits – Extrinsic Compensation – material things (e.g., wages, a salary, paid benefits, etc.) Management Fundamentals - Chapter 12 23 Intrinsic Compensation Are nonmaterial forms of compensation For example: – Sense of fulfilment – Sense of achievement – Sense of purpose – Sense of accomplishment – Great relationships with coworkers Management Fundamentals - Chapter 12 24  Work-life balance – How people balance career demands with personal and family needs. – Progressive employers support a healthy work-life balance. – Contemporary work-life balance issues: Single parent concerns Dual-career couples concerns Family-friendliness as screening criterion used by candidates Management Fundamentals - Chapter 12 25 Types of Pay (Extrinsic Pay) Base Pay – Wages – e.g., $50/hour – Salary – e.g., $200,000/year, or $32,000/month Piecework E.g., $5/toy made Commission – E.g., 20% of every sale made Management Fundamentals - Chapter 12 26 Types of Pay Bonus – E.g., $30,000 if you reach a certain sales number Merit Pay Increase E.g., a 4% permanent raise to your base pay if you perform at a level B+ or higher Benefits – E.g., Health plan, dental plan, paid vacation, pensions Management Fundamentals - Chapter 12 27 Compensation Mix Breaks down the type(s) of pay that a person is receiving into percentages. The AMOUNT of pay is irrelevant to the task of making a compensation mix. Deals with percentages, not dollar amounts Here are 3 different examples of compensation mixes 1. 100% wages 2. 85% salary, 15% benefits 3. 70% commission, 30% salary Management Fundamentals - Chapter 12 28 Compensation Mix Patterns Jobs Commission tends to be applied to sales jobs with lots of measurable job targets. Wages tend to be applied to lower paying jobs Salary tends to be applied to professional jobs. Management Fundamentals - Chapter 12 29 Compensation Preferences People Commission tends to be more preferred by young or highly qualified people who feel very confident in their jobs and are willing to take risks. Salary tends to be preferred by people in situations where a stable income without risk is preferred (e.g., parents) Benefits vary. For middle-aged to older individuals pensions and health plans become very important. Young parents may be attracted to Daycare benefits. Management Fundamentals - Chapter 12 30 Activity: Compensation Mix For each of the following, make up a job title and description of the person (e.g., age, family situation) that you believe could fit the compensation mix. – Joe is paid 100% wages – Mark is paid 100% salary – Erica is paid 80% salary, 20% commission – Shawna is paid 75% commission, 15% bonus, and 10% benefits – Brad is paid 80% salary, 20% benefits 31 Management Fundamentals - Chapter 12 Study Question 5: How do organizations maintain a quality workforce? Retention and turnover Retention = Keeping employees Turnover = Losing employees (could be due to firing, them quitting, retiring etc.) Turnover is very expensive due to replacement costs. Ex.) We had 50 employees at the beginning of last year. At the end of the year, 45 of those employees stayed and 5 of them either quit or were terminated Retention Rate = 90%; Turnover Rate = 10% Management Fundamentals - Chapter 12 32 Replacement – Replacement is the management of promotions, transfers, terminations, layoffs, and retirements. This is basically the management of turnover. – Replacement decisions relate to: Shifting people between positions within the organization. Retirement. Termination. Management Fundamentals - Chapter 12 33 Activity: Compensation Mixes For homework, complete the compensation mix activity Management Fundamentals - Chapter 12 34