CRI700 Final Exam Notes PDF

WEEK 7 RECRUITMENT & SELECTION Recruitment Recruitment is the process of finding and attracting capable individuals to apply for employment and accept a job offer if/when one is made. Significance:...

WEEK 7 RECRUITMENT & SELECTION Recruitment Recruitment is the process of finding and attracting capable individuals to apply for employment and accept a job offer if/when one is made. Significance: Getting recruitment right is critical due to high costs, higher for rare or sought-after talent. Missteps can be costly, especially for small and medium-sized enterprises (SMEs). Recruitment involves both purposeful and unintentional actions, making consistency essential. Challenges for SMEs Financial limitations: Smaller budgets for recruitment. for Recruitment Lack of employer legitimacy: SMEs are not always seen as an employer of choice. Unclear roles: Vague job boundaries and ad hoc processes can appear unprofessional Recruitment Process 1. Identify Job Openings: Analyze organizational needs. (how you actually find 2. Review Job Specifications: Define responsibilities and the ppl before you do qualifications. the screening 3. Examine Desired Characteristics: Determine what makes an process) ideal candidate. 4. Choose Recruitment Methods: Select sources and strategies OSCMPMC for reaching candidates. 5. Obtain Pool of Recruits: Generate interest and collect One- job opening applications. Special -job 6. Maintain Applicant Interest During Selection: Keep specification candidates engaged through communication and updates. Cake- characteristics 7. Persuade Chosen Candidates to Accept the Job: Negotiate of ideal employee offers and address candidate concerns. Made- methods of recruitment including sources and strategies to reach candidates Por - pool of recruits Isabelle- maintain onred, one on ) interest of candidates Peep -persuade them to stay Choosing Recruitment Questions to Consider: Sources/Methods 1. How many recruits are needed? 2. When are recruits needed by? 3. What skill level is required? 4. What methods have worked in the past? 5. What is the recruitment budget? 6. Are there any labour agreements specifying recruitment options? Internal Recruiting Advantages: Familiarity: Candidates already know the organization and its culture. Fit: Past performance can predict future success. Morale Boost: Promotes motivation by rewarding employees. Weaknesses: Internal Competition: Can reduce cooperation among staff. Lack of New Ideas: No "new blood" may limit creativity and innovation. Turnover Risk: Poor morale may lead to resignations if promotions are not granted. External Recruiting Advantages: Diverse Skills and Knowledge: Brings in expertise that may not exist internally. Fresh Perspectives: New ideas and innovative problem-solving methods. Weaknesses: Cultural Fit Challenges: New hires may struggle to integrate into the organization. Longer Learning Curve: Time needed to understand organizational processes. Higher Costs: Recruitment expenses often exceed internal recruiting. Employee Morale: Current employees may feel undervalued if positions are filled externally. Recruitment Methods 1. Direct Inquiries: Candidates directly approach organizations. 2. Employee Referrals: Leverage existing employees' networks. 3. Advertising: Job boards (offline and online).  4. Social Media and Digital Recruiting: Cost-effective platforms like LinkedIn. Trends in Recruitment 1. Digital Recruitment: Lower costs via platforms like LinkedIn and Indeed. 2. Headhunting and Poaching: Used in creative industries to target passive job seekers from competitors. 3. Regulations: Non-poaching agreements: Illegal (Competition Act 2023). 4. Non-compete clauses: Rare and limited to executives (C-level roles). Ethics of Poaching Concerns: Viewed as aggressive or unethical. Upsides: Can benefit workers through better opportunities and wages. Additional 1. Private or Temporary Help Agencies: Outsource recruitment Recruitment Methods to agencies. 2. Educational Institutions: Use internships to build a talent pipeline. 3. Professional and Labour Organizations: Recruit through industry-specific networks. 4. Job Fairs: Showcase opportunities to large audiences. 5. Recruitment Abroad: Attract international talent for unique skillsets. Always showcase the right attributes to attract the best candidates. Balance recruitment costs with long-term organizational needs. Evaluating Metrics for Evaluation: Recruitment Success 1. Cost per Hire: Measures the dollar cost for each person hired. 2. Quality of Applications: Assesses the caliber of candidates sourced from different recruitment methods. 3. Offers-to-Applicants Ratio: Compares the number of job offers made to the total applicants for a recruitment method. 4. Time Lapsed per Hire: Tracks the time taken to fill a vacancy. Selection Process Definition: A structured sequence of actions to determine the most suitable candidates for hiring. Begins with job applications and ends with the hiring decision. Functions like a funnel:  ○ High volume of applicants at the start, with increasing costs and selectivity as the process narrows. Strategic Importance of Selection: 1. Strategy Execution: Success depends on hiring the right employees. 2. Alignment with Job Requirements: Decisions should meet the specific needs of the position. 3. Consider Organizational Constraints: Factor in internal resources and limitations. 4. Labour Market Realities: Reflect availability of skills and competition. 5. Ethical and Accessible Practices: Ensure fairness and inclusivity in the selection process. Selection Process Steps: 1. Preliminary steps 2. Screening applicants 3. Employment tests 4. Interviews 5. Job preview 6. References are vertified 7.assessment of contingencies like drivers license, medical etc 8.hiring decisin Step 1: Preliminary Reception: Purpose: Initial interaction with applicants (walk-ins or write-ins). Process: Walk-ins: May receive a preliminary interview. Write-ins: Acknowledgment via email or letter. Screening: Identify unqualified candidates early. ○ Utilize automated screening tools for efficiency (but watch for potential bias). Step 2: Screening Applications: Evaluate applications to determine if they are: ○ Useful for the hiring process. ○ Worth pursuing for the next stages. ○ Automated tools can aid in this but should be used responsibly. Step 3: Employment Tests Types: ○ Personality and Integrity Tests. ○ Ability and Knowledge Tests.  ○ Performance and Situational Judgment Tests. ○ Assessment Centers. ○ Computer-interactive Tests. Criteria: ○ Tests must be **reliable** (consistent results) and **valid** (accurately measure intended qualities). ○ Tests should be **defensible** against legal or ethical scrutiny. Step 4: Employment Interviews: Purpose: ○ Most widely used and versatile selection tool. ○ Enables personal impressions and two-way exchanges. ○ Allows organizations to "sell" the role and address candidate questions. Advantages: ○ Flexible. ○ Effective public relations tool for the company. Disadvantages: ○ Reliability and validity may vary significantly depending on the interviewer and structure. Step 5: Realistic Job Previews: Purpose: Provide candidates with a true understanding of the job, including both positive and negative aspects. Benefits: ○ Reduces turnover by aligning expectations with reality. ○ Shows company culture and working conditions. Step 6: Verification of References: Requirements: ○ Obtain permission to contact references. ○ Only discuss factual work history. ○ Former supervisors may not be candid, and references can be biased. Reference Letters & Background Check: ○ Verify claims made by candidates during the interview process. Step 7: Contingent Assessments: Assessments:  ○ Health, medical, or driving information may be required. ○ Drug Tests: Increasingly used but must comply with employee rights. Conditions: ○ Tests should be job-related and have a legitimate purpose. ○ Candidates must be informed and tests should be administered fairly and reasonably. Step 8: Hiring Decision End of the Selection Process: ○ Approaches: Subjective Approach: Based on individual opinions of interviewers. Multiple Cutoff Approach: Reject candidates who fail to meet certain criteria. Compensatory Approach: Weighs strengths and weaknesses in other areas to compensate. Supervisor Involvement: Supervisors should contribute to the final decision. Candidate Notification: Notify candidates promptly and professionally to maintain the employer's brand. Types of Interviews 1. One-to-One, Panel, or Group Interviews**: One-to-One: A single interviewer and a candidate. Panel: Multiple interviewers assess one candidate. Group: Multiple candidates interviewed together, often in a group discussion format. 2. Unstructured Interviews: Description: Casual, conversational format with few or no planned questions. Focus: Gathers insights about soft skills, personality, and humility. Limitations: Lacks consistency and reliability, making comparisons difficult. 3. Structured Interviews: Description: Uses a predetermined set of questions.  Advantages: Easier to compare responses, higher reliability and validity. Disadvantages: Can feel formal and make candidates nervous. Best Practice: Use structured interviews for junior roles and unstructured ones for senior roles. Types of Structured Interviews 1. Behavioral Description: Focus: Past experiences to predict future behavior. Example: “Tell me about a time when you had to manage conflict at work.” 2. Situational: Focus: Hypothetical situations likely to arise on the job. Example: “What would you do if you had conflicting priorities?” 3. Stress-Producing: Focus: Assess how candidates handle stress through rapid questioning. *Note: Should only be used if relevant and defensible. Interviewer's Errors 1. Halo Effect: Favoring candidates based on one positive trait. 2. Leading Questions: Questions that influence responses. 3. Stereotypes: Bias based on candidate characteristics. 4. Contrast Errors: Comparing candidates unfairly based on others. 5. Non-verbal Cues: Reading too much into body language. 6. Interviewer Domination: One interviewer talking too much, leaving little space for the candidate. **Note**: AI can perpetuate biases if it is trained to predict based on existing biased systems, leading to unfair outcomes. Employment Contract Key Elements: Probationary period (if applicable). Start date and terms of employment clearly specified. Terms for restrictive covenants (e.g., NDAs, non-compete, non-solicitation clauses). Ensure termination procedures are legally enforceable. Evaluating the Selection 1. Workforce Quality and Productivity: Assess if hires meet Process expectations in terms of performance and productivity. 2. Supervisor/Peer Satisfaction: Evaluate if supervisors and peers are satisfied with the hires. 3. Training Costs: Monitor if training costs are increasing or if too much time is spent onboarding new hires. 4. Grievances and Turnover: Track if grievances, absences, and turnover rates are higher than expected. 5. Cost Analysis: Ensure recruitment and hiring costs align with the organization’s budget. 6. EDI Considerations: Review who is being selected or excluded and why. Ensure equitable hiring practices. 7. Bias in Selection Tools: Examine selection tools for any potential bias, such as disparate impact on certain demographic groups (e.g., gender, race). WEEK 8 ONBOARDING, TRAINING, AND DEVELOPMENT Strategic Importance of Definition: Onboarding, training, and development are essential Onboarding, Training, components of a comprehensive talent management strategy. and Development These processes help organizations integrate new hires, improve performance, and prepare employees for future roles. While they can be time-consuming and costly, they provide significant long-term benefits: 1. Reducing Turnover: Well-structured onboarding and training processes help employees feel supported and engaged, reducing the likelihood of early turnover. 2. Faster Time to Productivity: New hires become productive more quickly when they receive proper training and onboarding, which helps them understand their roles and expectations. 3. Employee Satisfaction: Investment in training and development increases employee satisfaction, which can improve morale, engagement, and overall retention. Relationship Between Training and Development Training: ○ Focus: Primarily on **job-related** Knowledge, Skills, and Abilities (KSAs) that employees need to perform their current roles effectively. ○ Objective: To improve **performance** in the present job. ○ Emphasis: **Behavior**—training helps employees build the skills needed for their current tasks. Development: ○ Focus: **Future job responsibilities** and preparing employees for more advanced or different roles within the organization. ○ Objective: To help employees grow and evolve, meeting the **long-term needs** of both the employee and the organization. ○ Emphasis: **Potential**—development activities target broader growth, including leadership development, career advancement, and skill expansion. Orientation Organizational issues: history, names and titles, overview; policies,  employee handbook HR related topics: pay, vacations, benefits, services, programs, counselling Role expectations: job location, job overview, safety, job tasks, objectives, relationships Onboarding Process Definition: Onboarding is the process of helping new hires adjust to both the **performance** aspects of their jobs and the **social** aspects of the organization. A comprehensive onboarding program typically includes: Orientation: Introduction to the organization's culture, values, and expectations. Socialization: Encouraging connections with colleagues and learning the social norms within the organization. Training and Development Activities: Equipping new hires with the necessary skills for their roles while providing opportunities for future growth. Outcomes of Effective Onboarding: 1. Greater Retention: New empl oyees are more likely to stay with an organization if they feel welcomed and well-prepared. 2. Faster Time to Productivity: Effective onboarding enables new hires to understand their roles and responsibilities more quickly, reducing ramp-up time. 3. Reduced Anxiety: By setting clear expectations and providing support, onboarding reduces stress and nervousness for new employees (e.g., "first-day jitters"). 4. Increased Motivation and Engagement: When new hires see that their organization is committed to their success, it boosts motivation and long-term engagement. Keys to Good Effective orientation programs are crucial for the successful Orientation integration of new employees into the organization. A good orientation ensures that new hires feel welcome, informed, and ready to contribute. Socialization: Socialization is the ongoing process through which new employees learn and adopt the values, norms, and beliefs of the organization. It involves helping new hires transition from "outsiders" to "insiders." Web-Weaving: Facilitating connections by arranging meetings or mentorship opportunities with colleagues and leaders after 1, 3, and 6 months. This encourages relationship-building, support, and integration within the team. Diversity and Inclusion: While socializing, it’s important to celebrate diversity and preserve what makes individuals unique, fostering an inclusive environment that supports a range of perspectives. Impact on Retention: Research shows that **86% of employees' decisions to stay long-term** are made within the first six months of employment (Maurer, 2015). This highlights the importance of making the initial phase of employment as supportive and engaging as possible. The Importance of Definition: Training is a critical part of developing employees and Training ensuring their success in their roles. In the modern work environment, training plays a pivotal role in driving performance and organizational growth. Short-Term Focus: Training efforts typically aim to impart immediate job-related information and instructions to new hires. This is crucial in getting employees up to speed quickly and ensuring they can contribute effectively in their roles. Recruitment Challenges: In a tight labor market, organizations may not always be able to recruit fully trained individuals, making training even more essential to filling skill gaps. Performance Improvement: Effective training enhances employee performance, reduces risks, and boosts confidence in handling job-related tasks. Adaptability: With rapid advancements in technology, shifting market dynamics, and changing societal demands, employees need continuous skill development. The ability  to adapt to new tools, systems, and strategies is increasingly crucial. Negative Impact of Neglect: A "sink or swim" mentality—where new hires are left to figure things out without proper training—can harm an organization’s reputation, making it less attractive to future talent. Ex. google launches internal anti-racism training programs The training system: Training process: 1. needs assessment, 2. training objectives, 3. program content and learning principles, 4. program delivery and 4. evaluation Training objectives: desired outcomes, conditions, performance criteria Needs Assessment Definition: A needs assessment is the first step in designing effective training and development programs. It helps identify the gaps between current performance and desired outcomes, guiding the creation of targeted learning initiatives.  Diagnosis of Problems and Challenges**: A needs assessment helps diagnose both current issues and future challenges that can be addressed through training. It focuses on areas where improvement is necessary to enhance performance or meet future goals. Individual, Team, or Organizational Needs: Needs can be identified at various levels—individual, team, or company-wide. For example: Individual: Employees may need training to improve their specific skills or address weaknesses identified during performance reviews. Team/Company: Broader needs may be identified based on team performance, customer feedback, or strategic changes. Sources of Information: Several indicators can signal a training need, including: Resume/Skills Inventory: Reviewing employees’ backgrounds and current skill sets. Grievances: Issues raised by employees may highlight areas where training is required. Safety Reports: If there are frequent safety incidents, training might be necessary to improve awareness and compliance. Performance Appraisals: Regular reviews can identify areas where employees are falling short and require development. Absenteeism and Turnover: High levels of absenteeism or turnover might indicate gaps in training or engagement that need addressing. Training Techniques Training techniques: On the job: job rotation, apprenticeships, coaching Off the job: lectures and videos, case study, role-playing, etc  Training Techniques: Trade-offs When designing a training program, organizations must balance various factors to determine the most effective approach. Here are some key considerations: Cost effectiveness Desired program content Appropriateness of facilities Trainee and trainer preferences and capabilities Learning principles Employee Employee development is essential for fostering growth and Development preparing employees for future challenges within an organization. Here are the core aspects: Focus Beyond Short-Term Needs: Employee development moves beyond addressing immediate skill gaps. It’s about preparing employees for more responsibility and leadership roles over time, aligning with long-term business goals. Talent Management: Talent management ensures that organizations have a pipeline of employees ready to fill key roles as they become available. This proactive approach helps meet the challenges and opportunities of the future. Who to Develop?: The decision on who should be developed depends on the organization’s strategy. Should it be all employees, or just a select group (e.g., top performers)? This decision has pros and cons: ○ All employees: Can increase overall organizational capability, but may dilute focus.  ○ Top performers: Targets resources at high-potential individuals, but may lead to disengagement among other employees. Career development should be a shared responsibility between Careers as Shared employees and employers. While employees should actively seek Responsibility growth opportunities, employers should facilitate and support their development. Here’s how both can contribute: Employees: ○ Exceptional job performance: Showcasing strong performance in their roles can help employees increase visibility within the organization. ○ Mentors and Sponsors: Employees should seek mentors or sponsors to gain insights, advice, and guidance for career progression. ○ Growth Opportunities: Employees should actively look for opportunities to expand their skills and experience, whether through lateral moves, new projects, or training. Employers: ○ Employers should help identify developmental opportunities, provide training and mentoring, and create a culture that supports continuous learning. Why Investing in Investing in career development has several advantages for both Employee/Career employees and organizations: Development is Important Develops Promotable Employees: Organizations create a strong internal talent pool for future leadership roles. Lowers Turnover: When employees feel they are growing and progressing in their careers, they are less likely to feel trapped or overqualified, reducing turnover. Enhances Employee Growth: Career development addresses basic employee needs for growth and self-fulfillment, increasing job satisfaction and engagement. Meets Legal and Moral Requirements: Career development initiatives can also help organizations fulfill legal obligations related to equal opportunity and employee development.  Optimizes Organizational Performance: By investing in employees' skills, organizations ensure a more skilled and competent workforce, directly impacting performance. Improves Employer Brand: Organizations known for fostering employee growth and development attract top talent, enhancing their reputation as an employer of choice. Creating Employee A structured development plan is essential to guiding employees Development Plans through their growth and ensuring alignment with business objectives. Here’s how to create a comprehensive development plan: 1. Assess Employees’ Needs and Aspirations: Understand where employees currently stand in terms of skills, and what their career goals are. 2. Link to Business Goals: Align individual development with the strategic objectives of the organization, ensuring that the development efforts support overall business success. 3. Identify Learning and Development Activities: Select the appropriate activities—whether formal training, workshops, or on-the-job learning experiences—that will help employees achieve their career goals. 4. Determine Resources: Identify the resources (time, budget, tools) that will be required to implement the development plan. 5. Identify Barriers: Understand any potential barriers to development, such as time constraints, lack of resources, or organizational structure, and find ways to mitigate them. Developmental Organizations use a variety of developmental strategies to support Strategies employee growth: Cognitive: These strategies aim to increase employees’ knowledge and expertise. Examples include formal education, lectures, and seminars. Behavioral: These strategies focus on changing behaviors, such as management style or interpersonal skills. Methods may include role-playing or behavior modeling. Environmental: These strategies provide employees with settings where they can develop new skills through  experiences. Examples include lateral transfers, temporary assignments, internal consulting, or international postings. Mentoring and Coaching: Whether through internal mentors, coaches, or external advisors, mentoring is an important strategy for development. Evaluation of training and development: 1. Reaction 2. knowledge/skill 3. Behaviour 4. Organizational results How Do Employees Employees may measure their career success in several ways, Measure Success? influenced by demographic and cultural factors. Common success metrics include: Advancement: Achieving promotions or moving into higher responsibility roles. Learning: Gaining new skills and knowledge that enhance their professional growth. Employability: Improving their ability to secure future job opportunities, either within or outside the organization. Positive Psychological Factors: Experiencing job satisfaction, self-fulfillment, and confidence in their career progression. WEEK 9 PERFORMANCE MANAGEMENT Reasons for Axing Some organizations opt to move away from traditional Performance Systems performance management systems for the following reasons: Ex. tesla fires as many as 700 workers after performance review, many unfairly cut a lot of women Improved Manager Conversations: Without the need to defend or justify ratings, managers can engage in more meaningful coaching and development conversations with employees. More Time for Informal Feedback: By reducing bureaucracy, managers can allocate more time for ongoing, informal feedback that feels more genuine and less structured. Differentiated Pay Decisions: With fewer rigid performance evaluations, organizations can have more discretion in pay decisions, tailoring compensation to individual contributions. Increased Employee Engagement: The elimination of ratings can reduce anxiety among employees, as the focus shifts from numerical assessments to broader development and goals. Subjectivity is Normal: Acknowledging that subjectivity in performance evaluation is inherent, many organizations find that it doesn't negatively affect motivation when approached with transparency and coaching. Despite these benefits, there are **consequences of axing performance management**: Unclear Performance Expectations: Without structured systems in place, employees may lack clarity about what is expected of them, which can lead to confusion and decreased productivity. Less Pay Differentiation: If performance ratings are removed, it can be harder to differentiate pay based on individual performance, leading to potential dissatisfaction and lower engagement. Decline in Conversation Quality: Performance conversations may lose their effectiveness without clear frameworks. Managers might struggle to provide concrete feedback, affecting employees’ development. Reduction in Informal Conversations: With fewer formal evaluations, employees and managers may not have regular, meaningful conversations about performance, leading to decreased engagement and less development. Overall Drop in Performance and Engagement: Organizations that remove performance management risk a decline in both employee performance and engagement. Regular performance  management is crucial for aligning employees with organizational goals and providing necessary feedback. Uses a process of The point of performance appraisal is for: performance appraisal 1. Administrative decisions (ex. Pay raises, promotions) 2. Feedback an performance improvement 3. Employee development and career planning 4. Criteria for test validation 5. Training program objectives 6. Job redesign Process: 1. Performance objectives 2. Measure performance 3. Communicate feedback 4. HR records and decisions The Importance of Feedback plays a critical role in performance management and Feedback employee development. Key aspects include: Appraisals for Administrative Decisions: Typically done annually, appraisals are used for decisions like promotions, pay raises, and bonuses. Appraisals for Developmental Purposes: Providing feedback after key incidents, whether positive or negative, ensures employees have clear insights into their performance. Regular feedback also helps in shaping continuous improvement. HR Effectiveness: Feedback helps evaluate the effectiveness of human resource management (HRM). If employees are consistently underperforming, it might indicate that the recruitment, selection, or training processes need to be re-evaluated.  Exclusion from Promotions: Employees who don’t receive proper feedback may miss out on advancement opportunities, especially if they’re not aware of the areas they need to improve. Selection Issues: Poor feedback could signal a weak selection process, where the wrong candidates are hired for the wrong roles. Feedback and Retention: Employees receiving low-quality feedback are **63% more likely** to leave their organizations. The quality of feedback influences employee retention and engagement, as employees who know what's expected of them are more likely to stay. In fact, **61% of employees who stay** report having a clear understanding of performance expectations. High Performers and Feedback: Interestingly, high performers often receive less quality feedback than their lower-performing peers. This discrepancy can hinder growth and morale, especially if feedback isn’t tailored to help high performers improve or advance. Setting Performance Performance objectives are the goals that employees work Objectives toward and are a critical part of the performance management process. Effective performance objectives should: Be Job-Related: They should align with the specific responsibilities and outcomes of the employee's role. Be Practical: Objectives need to be achievable and realistic within the context of the job and available resources. Be Measurable: Using performance standards such as quality, quantity, and time provides a benchmark for success and allows for clear evaluation. Performance objectives are based on **performance standards**, which act as measurable benchmarks that guide employee progress. These can relate to: 1. Quality: Ensuring that the output meets or exceeds the required standard. 2. Quantity: Aiming for a specific volume of work. 3. Time: Meeting deadlines or responding to situations in a timely manner. Additional When managing performance, it’s important to consider both Considerations in **tangible** and **intangible outputs**: Performance Management Tangible Output: This is measurable and directly observable, like sales figures, production numbers, or other quantifiable metrics. Intangible Output: This involves less direct measurement, like creativity, collaboration, or leadership qualities, which can be harder to quantify but are equally important. A useful perspective to keep in mind is that **90% of ideas never get tested**—so it’s important to look at all suggestions and innovations, even if they don’t immediately materialize. Over time, aim to reduce **ambiguity** and provide more **clarity** in performance management. Measuring Performance Direct: rather actually sees the employee’s performance Indirect: substitutes for direct (secondhand observations, complaints) Objectives: verficable by others, usually quantitative Subjective: not verficable by others, based on rater’s opinion Measuring Performance: Comparative evaluations rank employees against each other Comparative and are often used in performance management systems. Evaluations Common methods include: 1. Forced Distribution: Employees are sorted into predefined categories, often following a bell curve. A set proportion must fall into each category (e.g., top 20%, middle 70%, bottom 10%). This method forces differentiation, even if employees’ performances are similar, which can lead to unfair evaluations. 2. Ranking Method: Employees are ranked from best to worst based on their performance. Subject to biases such as **halo effect** (where one positive trait influences overall judgment) and **recency effect** (where recent performance, rather than the full review period, is weighted too heavily). Measuring Performance: Non-comparative evaluations focus on assessing each Non-Comparative employee’s performance independently, without directly Evaluations comparing them to others. 1. BARS (Behaviorally Anchored Rating Scales): Describes effective or ineffective performance using a scale with clear descriptions. Job-related, practical, and standardized, BARS focuses on behaviors that lead to success in the role. May include direct testing or skill demonstrations. 2. Rating Scales: Employees and supervisors work together to establish future performance goals. One of the oldest and most widely used methods, often subjective, where the rater’s opinion influences the evaluation. Responses are typically given numerical values to assess various aspects of performance. 3. MBO (Management by Objectives): A collaborative approach where both the employee and supervisor agree on performance objectives. Focuses on achieving specific, measurable goals, rather than purely qualitative assessments. 4. Tests and observations (like Self-Assessment): Employees rate their own performance, though **self-assessment bias** can occur—e.g., 93% of U.S. drivers think they are better than average (Svenson, 1981). Sources for performance ratings 1. Peers 2. Customers/clients 3. Self-appraisals 4.Supervisors 5. Direct Reports Why Performance Performance management can fail due to several common Management Fails biases: 1. Halo Effect: When a manager allows one positive trait or behavior to influence the overall evaluation, leading to an overly favorable rating. 2. Central Tendency: Raters may avoid giving extreme ratings (both high and low) and instead rate everyone as average, failing to differentiate performance levels. 3. Leniency or Strictness: Some raters may be overly lenient, inflating ratings, while others may be overly strict, giving everyone low scores. 4. Recency Effect: Raters place undue emphasis on recent performance, rather than evaluating the employee’s performance over the entire review period. 5. Similar-to-Me Bias: Raters may favor employees who are similar to them in background, values, or working style, leading to unfair evaluations. Ex. student evaluations cant be used to assess profs as research shows theyre biased against women, which makes them illegal to use Avoided with training, so everyone gets the same stick in the yard Importance of Training To mitigate these biases and ensure fairness, training and and Calibrating Raters calibrating raters is essential. This involves: Teaching raters to recognize and control for biases. Ensuring that raters are consistent in their evaluations. Providing guidelines for objectively assessing performance. Conducting When conducting performance reviews, ensure that the process Performance Reviews is clear, objective, and collaborative: 1. Be Direct and Specific: Use objective work data and avoid subjective judgments. Clearly state what was done well or needs improvement. 2. Do Not Get Personal: Keep the focus on the employee’s work and compare against established standards, not personal attributes. 3. Encourage Discussion: Ask open-ended questions and actively listen to the employee’s perspective. Make sure it’s a two-way conversation. 4. Develop an Action Plan: Collaboratively agree on future steps, goals, and development areas. Legal Considerations in Performance management is subject to legal guidelines to Performance Reviews ensure fairness and consistency: 1. Employee Entitlement: Employees are entitled to fair treatment, including the right to be heard. This means performance reviews should be transparent and justified. 2. Clear Policies and Guidelines: Discipline or termination should be based on clear, well-documented policies and job-related performance issues. Poor performance usually does not constitute "just cause" for immediate termination but should follow a progressive discipline process. 3. Performance Appraisal Forms as Legal Documents: These forms are legal documents and should only include performance criteria that are relevant to the job. They must also be used as part of a well-documented process, including feedback interviews and a reasonable timeline for improvement. 4. Documentation in Court: Courts favor well-documented performance issues, showing the employee received feedback and had an opportunity to improve before any further action was taken.  By considering these factors, organizations can improve the effectiveness and fairness of their performance management systems. WEEK 11 COMPENSATION AND BENEFITS Objectives of Effective compensation systems serve multiple purposes within an Compensation organization: 1. Legal Compliance: Ensure that compensation practices adhere to legal standards such as minimum wage, overtime pay, and non-discrimination laws. 2. Control Costs: Manage salary structures and benefits to stay within budgetary constraints while remaining competitive. 3. Retain Employees: Use compensation as a tool to retain valuable talent by offering competitive pay and benefits. 4. Acquire Personnel: Attract qualified employees through competitive compensation packages that align with market standards. 5. Reward Behavior: Incentivize desirable employee behaviors, such as productivity, performance, and company loyalty. Two key equity considerations in compensation are: Internal Equity: Pay is related to the relative worth of jobs within the organization. External Equity: Pay is aligned with what the market offers for similar jobs. Good management While compensation is crucial, it is not the sole motivator for over compensation employee engagement. **Good management** and leadership are often more influential in employee retention. Some challenges include: Pay is a hygiene factor: It may prevent dissatisfaction but isn't always a primary motivator. Rewards may rupture relationships: Overemphasis on financial rewards can sometimes disrupt collaboration. Rewards may undermine responsiveness: Over time, excessive focus on rewards can reduce employees’ intrinsic motivation. Total Compensation Total compensation includes a variety of components: Base wages: Regular salary or hourly pay. Variable pay: Performance-based incentives, bonuses, and commissions. Perks and on-site amenities: Benefits such as meals, transportation, gym access, etc. Status/recognition: Non-monetary rewards like awards and titles. Benefits: Health insurance, retirement plans, etc. A **total reward approach** leads to benefits such as: Easier recruitment of high-quality staff. Lower employee turnover. Improved employee performance. A stronger employer reputation. Vroom’s Expectancy Vroom’s Expectancy Theory helps explain employee motivation Theory based on three factors: Expectancy (E): effort will lead to better performance. This highlights the Instrumentality (I): better performance will lead to a importance of clear reward. compensation Valence (V): The value of the reward to the employee. management and understanding what The formula for motivation is: employees truly value to M = E * I * V* maximize motivation. Motivation lowest if (V) reward is not valued by employees If even one of these is low, the overall employee motivation is going to take a hit  Make sure employee can succeed, rewarded for good job, and that rewards actually mean something to them Not just throwing money at them or giving everyone the same reward, but tailoring the reward per employee Is it possible to make everyone happy with this? Not everyone reward is gonna resonate w every employee This is why understand their individual needs is so important Compensation (or reward) actually aligns with the employees values and needs Equity Theory Equity Theory is centered on perceptions of fairness in (Organizational compensation and rewards: Justice) 1. Distributive Justice (DJ): Concerns who gets what and whether the distribution is perceived as fair. (like pay raises, Employees motivated promotions etc, who gets recongized for what; ex. An when there is employee who does the same work as you is getting made fairness/equity in the more is low DJ, bad for moral) workplace 2. Procedural Justice (PJ): How the distribution decisions are made and whether the process is fair. (Abt systems and how you got there, not just abt results; are performance reviews transparent, are the criteria for promotion clear and fair, does everyone have chance to prove themselves; even if you dont get promotion, PJ is about making sure you feel like process is fair) 3. Interactional Justice (IJ): How decisions about DJ and PJ are communicated to employees. (On a personal level, like were you treated fair and with respect; ex. You dont get promotion, but manager sits you down kindly and is nice and respectful abt it abt it) The **worst combination** is low distributive (DJ) and procedural justice (PJ), which can lead to employee dissatisfaction and lower morale. Ex. not only did you not get what you thought was fairly yours and deserved, but that the whole process on deciding that was messed up Greenberg’s Theft A study by Greenberg (1990) illustrated the impact of procedural Study (1990) justice on employee behavior: Plant A: 15% pay cut with inadequate explanation → Resulted in a spike in theft.  Plant B: 15% pay cut with a good explanation → Resulted in an increase in positive behaviors. Plant C: Control group → Behavior remained stable. This study highlights the importance of communication and fairness in compensation decisions. Phases of Compensation Determining direct compensation: Management Phases of Compensation Management 1. Phase 1: Compensation Philosophy Organizations need to choose a compensation philosophy: Lead: Paying more than the market average. Match: Paying in line with the market. Lag: Paying less than the market. 2. Phase 2: Job Analysis This phase involves understanding the job and the skills required through: Job descriptions. Job specifications. Performance standards. 3. Phase 3: Pricing Jobs Job pricing involves determining the relative worth of jobs using methods such as: Job Evaluation: Internal assessment based on job importance and responsibilities.  Market-Pricing: Paying based on what competitors offer for similar positions. Skill-Based Pricing: Paying based on the skills and competencies required for the job. Phase 4: Matching Employees to Pay This phase focuses on establishing the pay level for each job and aligning it with the company’s pay policy. This creates a structured **compensation system** with clear job classes and rate ranges. Different pay types Merit pay: a compensation system that rewards employees for their performance, rather than their seniority, position, or hours worked, individual Severance pay: one week's pay per year of employment if you have worked five years or more Incentive pay: Compensation that is directly tied to an employee’s performance, productivity or both,individual or teams Pay Secrecy vs. Advantages of Pay Secrecy: Transparency Employees tend to prefer pay secrecy as it gives managers more freedom and reduces focus on salary alone, encouraging a focus on the bigger picture. Secrecy can give managers more flexibility in managing pay and performance. Disadvantages of Pay Secrecy: It may foster distrust in the pay system and obscure inequities. Ex. Game companies post abusrdly broad salary range, vieo game workers question public salary ranges (ex. $330,000-$1.8 million) Benefits and Corporate Strategy Benefits Societal Objectives: Solve social problems and provide security for interdependent wage earners Employers can deduct costs of benefits as a business expense Most benefits tax-free for workers Gives financial security against illness, disability, and retirement Organizational objectives: Must offer to recruit and retain Reduce fatigue and enhance productivity (breaks, vacations) Satisfy employee objectives Minimize cost (overtime, injuries, recruitment, etc.) Employee objectives: Lower costs, more availability Lower income taxes Partial protection from inflation Primary objective may be to obtain benefits and services (e.g., supplemental health and life insurance) Benefits and corporate strategy Legally required: CPP, employment insurance (EI), workers’ compensation, health insurance plans, holidays and vacations, materinity/paternity leaves Voluntary: Life and health insurance Disability insurance Salary continuation Retirement security (pension) Paid time-off Employee services Employment and Social Development Canada (EDSC): Federal department that provides programs and services for employers and present and potential employees Employee Insurance (EI): A program to help alleviate the financial problems of workers in Canada during the trasiiton from one job to another Employee Assistance Programs (EAPs): a confidential, short-term counseling service that helps employees and their families address personal and work-related issues Emerging services Challenges for Communication of benefits to workers (lack of awareness) HRM Increasingly complex packages (keep track + avoid duplication) Comply with all (and ever changing) legal requirements Control ballooning costs (pension crisis, sick leaves, etc.) Needs auditing (effective?) Ex. Why unlimited vacation isnt as great as it sounds WEEK 12 HEALTH AND SAFETY In the 1900s, the thinking and attitudes of employers and Health and employees toward accident prevention were quite different... Safety at the Workplace Assumption of risk was a legal expression used by the courts Workers accepted customary risks of the occupation Workers were instructed to protect themselves from hazards Scars were accepted as badges of Honour Workplace Injuries and Health Hazards ​ Workplace accidents and occupation related  illnesses: $8B annually in direct compensation More than $19B including indirect expenses Direct cost of injuries: Lost wages, medical treatment, rehabilitation, etc. Indirect costs: Lost production, recruiting, training, etc. 2.5 employees die each day from workplace accidents (US) Categories of Health 1. Physical Agents: Exposure to physical elements, e.g., Hazards Noise. 2. Biological Agents: Exposure to natural organisms, e.g., Viruses. 3. Ergonomic-Related: Caused by the work environment, e.g., Strain Commonly Affected Groups: Typically men and younger people. Trends and Demographics Economic Growth and Injury Rates: Injury rates increase with economic expansion. Ex: Stuntmen and crew member deaths, Tom Petty’s death from overuse of medication because of pain accrued from a lifetime on the road Basic Workers' Rights 1. Right to Know ○ Purpose: Identifying health and safety hazards. KUP ○ Tools & Regulations: WHMIS (Workplace Hazardous Materials Information System) Labels and Safety Data Sheets (SDS) (instead of cup its Training programs. kup- workers rights) ○ Employer Obligations: Assess all risks annually (including physical and non-physical hazards). 2. Right to Refuse Unsafe Work ○ Worker protections: Cannot be punished for refusal. ○ Limitations: Complaint unresolved or immediate danger.  Must act in good faith with reasonable belief. ○ Note: Not all professions have this right. 3. Right to Participate ○ Joint Health and Safety Committee (JHSC): Non-adversarial, management and labour collaboration. Shared responsibility for workplace safety. 2-12 members; at least half must be workers. SMEs (Small-Medium Enterprises): At least 1 lead member Implications for HRM 1. Policy Enforcement ○ Ensure consistent application of safety policies. 2. Due Diligence ○ Best legal defence against health and safety violations. 3. Regular Audits ○ Conduct frequent health and safety inspections. 4. Promote a Safety Climate ○ Leadership must lead by example. 5. During Organizational Changes (e.g., downsizing) ○ Maintain safety standards even during crunch periods. Reorganizations and Their Impact Workplace Stress Negative effects on mental health, turnover, and job performance. Leaders often underestimate these effects (Fahey, 2010). Individual Factors in Creative Industries (CI) High emotional investment compared to regular jobs Risk factors for work addiction: ○ Low self-esteem. ○ Doubts about work performance. ○ Women are more predisposed to work addiction than men. 1. Factors unique to the job: such as workload/pace, lack of Causes of workplace autonomy, physical environment, isolation stress 2. Role in the organization: role conflict/role ambiguity, level  of responsibility 3. Career development: includes under or over promotion, job security, overall job satisfaction 4. Relationships at work: includes supervisors/coworkers/subordinates, threat of violence or harassment 5. Organizational climate: participation (or not) in decision making, management style, communication patterns If leaders fully understood the effects of reorganizations on mental health, turnover and job performance, they would limit them or go about them in different ways Generative AI-nxiety: fear of AI replacing human talent Burnout High demand + low control _ young people = burnout Definition: Mental, emotional, and physical exhaustion from prolonged stress. Consequences: Anxiety disorders, depression, PTSD. Increased absenteeism or presenteeism (working despite being unwell). Prevention and Management: Proactive HR measures: ○ Supervisor training. ○ Counseling services. Integration of stress management into workplace culture. Stress Management Curative Methods Address outcomes of stress: ○ Paid time off. ○ Exercise facilities. ○ Counseling services. Preventive Measures Tackle root causes of stress: ○ Stress management training.  ○ Adjust job responsibilities. Stress Audits Identify causes of stress within the workplace. HR Actions to Reduce 1. Establish Policies: Clear guidelines for managing stress. Stress 2. Define Roles: Reduce confusion and conflicting responsibilities. 3. Job Design: Ensure work aligns with employee skills. 4. Compatible Workload: Prevent overload. 5. Provide Training: Equip employees to handle stress. 6. Flexible Work Schedules: Improve work-life balance. 7. Encourage Social Interaction: Build supportive networks. 8. Employee Participation: Involve workers in decision-making. ​Workplace Definition Harassment Offensive, unwelcome behavior with significant impact (intent irrelevant). Can be a single severe incident or repeated actions. Range of Behaviors Offensive remarks to violence. Importance of addressing minor issues early to prevent escalation. Legal Frameworks Human Rights laws address harassment. Criminal Code covers acts like violence, sexual assault, and stalking (MOL, Feinstein 2011). Prevalence of ​Statistics: Harassment 94% of women in U.S. film/TV report harassment. Most incidents occur during rehearsals, often by directors or performers. 91% of victims do not report incidents due to fear of retaliation. Awareness vs. Reporting Movements like #MeToo and #TimesUp increased awareness. Reporting remains low despite heightened awareness. Bill 168 Overview Previous Status (Ontario, 2009) Amendment of the Occupational Health and Safety Act (OHSA) implicitly required a “safe” duty; not explicit about harassment. Requires all workplaces/employers to have procedures in place if there is harassment in the workplace, or face stiff penalties if they do not Just Ontario Key Requirements Policies must include procedures for immediate assistance when harassment occurs or is likely to occur. Assess and control harassment risks. Show commitment to addressing workplace harassment. Policies need not be written if the workplace has fewer than six employees. Small and Medium Enterprises (SMEs) Employers must designate someone to handle harassment reports, potentially from outside the organization. Harassment Policy: Reporting Measures Key Elements Provide procedures for employees to report harassment to employers or supervisors. Investigation Process  Outline how incidents and complaints will be investigated and addressed. Clarity and Education Include prescribed behaviors and ensure staff understand what constitutes inappropriate conduct. Acknowledge prevention of every incident is impossible but stress the importance of awareness. Policy + zero tolerance + confidentiality Remote Work and Risks Harassment Increased isolation makes harassment more likely. Fewer witnesses can enable perpetrators. Policy Application Emphasize policies apply to all work settings, including: ○ Remote workspaces. ○ Social gatherings outside regular work hours or locations. Live Performance ​Findings Sector: Follow-Up Study Decrease in harassment, but: ○ Bullying (hostility) has increased. ○ Bystanding (ignoring incidents) has risen. Policy Challenges Implementation issues: ○ Processes, consequences, and follow-ups often falter. Victims’ response: ○ 62% handle situations themselves; only 9% succeed in resolution. Whistleblowing Perception Viewed both positively (heroes) and negatively (traitors). Barriers to Reporting Fear of retaliation.  Reluctance to be labeled a victim or overly sensitive. Belief the harasser will not face consequences. Limited awareness of rights. Cultural Influences Organizational/occupational culture and power dynamics discourage reporting. Whistleblowers face stigma, seen as complainers or finger-pointers. CAEA Survey (2018): Key Principles Policy Recommendations Zero Tolerance: Harassment is not acceptable in any form. Confidentiality: Protect the privacy of those involved in harassment cases. Challenges in Implementation Harassment policies need to extend beyond written rules to effective enforcement and follow-up.