2023_2024of BOH4M - 4.3c - LN, Human Resources - Training to Compensation (without Interview Activity).pptx

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 us...

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 company, their values, beliefs, and basic issues that apply to every job ➢ Training – – – – Job rotation Coaching Mentoring Modeling ➢ Off-the-job training ➢ A set of activities that provides the opportunity to acquire and improve job-related skills – Management development 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 – Is specific usually more specific to the performance elements of a particular job or task – Can be done by anyone who is proficient at that task; typically an immediate supervisor or experienced coworker Mentoring ● Tends to apply to a broader set of tasks; applies to the job as a whole ● Usually done by someone who is experiences; take a new employee under their wing – Very hands-on; often involves ● Very hands off; maybe monthly modelling of how the task meetings should be done 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