Human Resource Management PDF

**[Human Resource Management]** **Human Resource Management** - process of acquiring, training, appraisal, and compensating employees, and of attending to their labor relations, health, and safety, and fairness concerns. **Organization** - group consisting of people with formally assigned roles...

**[Human Resource Management]** **Human Resource Management** - process of acquiring, training, appraisal, and compensating employees, and of attending to their labor relations, health, and safety, and fairness concerns. **Organization** - group consisting of people with formally assigned roles who work together to achieve the organization's goals. **[MANAGEMENT PROCESS]** MANAGING is to perform five Basic Functions: **1. Planning** a\. Establishing goals and standards b\. Developing rules and procedures c\. Developing plans and forecasts **2. Organizing** a\. Giving each subordinate a specific task b\. Establishing departments c\. Delegating authority d\. Establishing channels of authority and communication e\. Coordinating the work of subordinates **3. Staffing** a\. Determining what type of people should be hired b\. Recruiting prospective employees c\. Selecting employees d\. Setting performance Standards e\. Compensating employees f\. Evaluating performance g\. Counseling employees h\. Training and developing employees **4. Leading** a\. Getting others to get the job done b\. Maintaining morale c\. Motivating subordinates **5. Controlling** a\. Setting standards (quota sales, quality production) b\. Checking to see how actual performance compares with these standards c\. Taking corrective actions Conducting job analyses (determining the nature of each employee's job). 1. Planning labor needs and recruiting job candidates. 2. Selecting job candidates. 3. Orienting and training new employees. 4. Managing wages and salaries (compensating employees). 5. Providing incentives and benefits. 6. Appraising performance. 7. Communicating (interviewing, counseling, disciplining). 8. Training employees and developing managers. 9. Building employee relations and engagement. **[Human Resource Management (HRM) ]** - Is the utilization of employees to achieve organizational objectives. - It is the business function of managing employees. HRM professionals embrace the idea that employees are essential to the success of organizations, and as such, they view employees as assets or human capital. **\ Six (6) functional areas associated with effective HRM:** 1. **[Staffing]** - Is the process through which an organization ensures that it always has the proper number of employees with the appropriate skills in the right jobs, to achieve organizational objectives. Staffing involves: 1. **Job analysis** - the systematic process of determining the skills, duties, and knowledge required for performing jobs in an organization. It impacts virtually every aspect of HRM, including planning, recruitment, and selection. 1.  **Human resource planning** - is the systematic process of matching the internal and external supply of people with job openings anticipated in the organization over a specified period. 1. **Recruitment and Selection.** - Recruitment is the process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications to apply for jobs with an organization. Selection is the process of choosing the individual best suited for a particular position and the organization from a group of applicants.  2. **[Performance Management]** - Performance appraisal is a formal system of review and evaluation of individual or team task performance. **Types of Employee Appraisal Systems** - Trait focused PA - Competency focused PA - Goal focused PA - Task focused PA Training is designed to provide learners with the knowledge and skills needed for their present jobs. Development involves learning that goes beyond today's job and has a more long-term focus. **[Organization development (OD)]** is planned and systematic attempts to change the organization (corporate culture), typically to a more behavioral environment. OD applies to an entire system, such as a company or a plant. **[Career planning]** is an ongoing process whereby an individual sets career goals and identifies the means to achieve them. **[Career development]** is a formal approach used by the organization to ensure that people with the proper qualifications and experiences are  available when needed. Organizations should assist employees in career planning so the needs of both can be satisfied. **[Human Resource Development]** **Compensation** \- A well-thought-out compensation system provides employees with adequate and equitable rewards for their contributions to meeting organizational goals and the term compensation includes the total of all rewards provided to employees in return for their services. a\. **Direct Financial Compensation (Core Compensation)**: Pay that a person receives in the form of wages, salaries, commissions, and bonuses. b\. **Indirect Financial Compensation (Employee Benefits):** All financial rewards that are not included in direct compensation, such as paid vacations, sick leave, holidays, and medical insurance. c\. **Nonfinancial Compensation:** Satisfaction that a person receives from the job itself or from the psychological or physical environment in which the person works. **Safety and Health** \- Safety involves protecting employees from injuries caused by work-related accidents. Health refers to the employees' freedom from physical or emotional illness. **Employee and Labor Relations** \- When a labor union represents a firm's employees, the human resource activity is often referred to as labor relations, which handles the job of collective bargaining.  Internal employee relations comprise the HRM activities associated with the movement of employees within the organization such as promotions, demotion, termination, and resignation. **[Who performs HRM activities:]** 1. Human resource managers/human resource management professional 2. HR (Human Resources) outsourcing - Discrete services outsourcing involves one element of a business process or a single set of high-volume repetitive functions to be outsourced. - **[Business process outsourcing (BPO)]** is the transfer of the majority of HR services to a third party. **[HRM is the business function of managing employees]** to facilitate an organization's efforts to create value. **Capital** refers to the factors that enable companies to generate income, higher company stock prices, economic value, strong positive brand identity, and reputation. **Human Capital** refers to sets of collective skills, knowledge, and ability that employees can apply to create value for their employers. **\ IMPORTANCE OF HRM TO MANAGERS**\ 1. Avoid personnel mistakes 2\. Improve profits and performance 3\. May spend some time as an HR manager 4\. May end up as your own HR manager for small businesses [**Resource Management** **Authority** ]is the right to make decisions, to direct the work of others, and to give orders. Managers usually distinguish between line authority and staff authority. - Line Authority - Staff Authority  **Line authority** traditionally gives managers the right to issue orders to other managers or employees. Line authority therefore creates a superior (order giver)--subordinate (order receiver) relationship.  - Managing departments (like sales or production) that are crucial for the company's survival. **Staff authority** gives a manager the right to advise other managers or employees. It creates an advisory relationship. - Departments that are advisory or supportive, like purchasing and human resource management. Human resource managers are usually staff managers. They assist and advise line managers in areas like recruiting, hiring, and compensation. **[Line Managers' Human Resource Management Responsibilities:]** 1\. Placing the right person in the right job 2\. Starting new employees in the organization (orientation) 3\. Training employees for jobs that are new to them 4\. Improving the job performance of each person 5\. Gaining creative cooperation and developing smooth working relationships 6\. Interpreting the company's policies and procedures 7\. Controlling labor costs 8\. Developing the abilities of each person 9\. Creating and maintaining departmental morale 10\. Protecting employees' health and physical conditions **[Staff Managers' Human Resource Management Responsibilities:]** 1. Recruiters: Use various methods to search for qualified job applicants. 2. Equal employment opportunity (EEO) representatives or affirmative action coordinators: Investigate and resolve EEO grievances, examine organizational practices for potential violations, and compile and submit EEO reports. 3. Job analysts: Collect and examine detailed information about job duties to prepare job descriptions. 4. Compensation managers: Develop compensation plans and handle the employee benefits program. 5. Training specialists: Plan, organize, and direct training activities. 6. Labor relations specialists: Advise management on all aspects of union management relations. **[Decision Making ]** The **Vroom-Yetton Model** distinguishes between five different types, depending on the situation and the level of involvement: - **Autocratic Type 1 (AI):** Leader makes own decision using information that is readily available to him or her at the time. This type is completely autocratic. - **[Autocratic Type 2 (AII):]** Leader collects required information from followers, then makes decision alone. Problem or decision may or may not be informed to followers. Here, followers\' involvement is just providing information. - **[Consultative Type 1 (CI):]** Leader shares problem to relevant followers individually and seeks their ideas and suggestions and makes decision alone. Here followers do not meet each other and the leader's decision may or may not reflect the followers\' influence. So, here followers\' involvement is at the level of providing alternatives individually. - **Consultative Type 2 (CII)**: Leader shares problem to relevant followers as a group and seeks their ideas and suggestions and makes decision alone. Here followers meet each other, and through discussions they understand other alternatives. But the leader's decision may or may not reflect the followers\' influence. So, here followers involvement is at the level of helping as a group in decision-making. - **[Group-based Type 2 (GII)]**: Leader discusses problem and situation with followers as a group and seeks their ideas and suggestions through brainstorming. Leader accepts any decision and does not try to force his or her idea. Decision accepted by the group is the final one. **[NEW APPROACHES TO ORGANIZING HR]** - **"Reengineering"**- The fundamental rethinking and redesign of business processes to improve critical performance as measured by cost, quality, service, and speed; also called business process redesign. - **Corporate HR teams** - assist top management in top-level issues such as developing the personnel aspects of the company's long term strategic plan.  - **Embedded HR teams** - HR generalists that provide the employee selection and other assistance the department needs. - **Centers of expertise** - specialized HR consulting firms within the company. **\ IMPORTANT TRENDS OF HRM** **[1. WORKFORCE DEMOGRAPHIC AND DIVERSITY TRENDS]** - Workforce will continue to become more diverse with more women, minorities, and older workers in the workforce.  - Many employers call "the aging workforce" a big problem. **2. TRENDS IN JOBS PEOPLE DO** - Work has shifted from manufacturing to service. - Most on-demand workers are freelancers and independent contractors. - The acquisition and development of superior human capital appears essential to a firm\'s profitability and success. **3. GLOBALIZATION TRENDS** - Globalization - companies extending their sales, ownership, and/or manual facturing to new markets abroad. - Free trade areas - agreements that reduce tariffs and barriers among trading partners. - World class - to lower costs, to make employees more productive, and to do things better and less expensively. **4. ECONOMIC TRENDS** - Economic trends have moved up at present and hopefully will continue to do so **5. LABOR FORCE TRENDS** - The labor force participation rate, which is the percentage of the population that wants to work.  - Talent management, the acquisition, development, and retention of talent to fill companies' employment needs **6. TECHNOLOGICAL TRENDS** Several technologies in HRM: 1\. Social media tools 2\. Mobile applications 3\. Gaming features  4\. Cloud computing-based tools 5\. Data analytics 6\. Artificial Intelligence (AI) 7\. Augmented Reality (AR) **[6 PILLARS OF HRM]** - "Personnel management" is not new. - Employers must excel at managing employees' knowledge, skills, and expertise (human capital). **1. Distributed HR and the New HRM** - More human resource management tasks are being redistributed from a central HR department to the company's employees and line managers. - This gives many line managers more human resource management responsibilities. - And this means that many human resource managers can refocus their efforts from day-to-day activities like interviewing candidates to broader efforts, such as formulating strategies for boosting employee performance and engagement. **2. Strategic HRM** - Means formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims. - Today's human resource management is more involved in longer-term, strategic "big picture" issues.  - A strategic plan is the company's overall plan for how it will match its internal strengths and weaknesses with its external opportunities and threats in order to maintain a competitive position. - **Strategic management** is the process of identifying and executing the organization's strategic plan by matching the company's capabilities (strengths and weaknesses) with the demands of its environment (its competitors, customers, and suppliers, for instance).  - **Three-step sequence[:]** *Set the firm's strategic aims* → *Pinpoint the employee behaviors and skills we need to achieve these strategic aims* → *Decide what HR policies and practices will enable us to produce these necessary employee behaviors and skills.* **3. Performance and Human Resource Manager** - HR manager spearheads employee performance - improvement efforts. **[3 Levers]** 1\. **HR department lever** - ensures that the HRM function is delivering services efficiently. 2\. **Employee costs leve**r - advises top management about company's staffing levels, and in setting and controlling the firm's compensation, incentives, and benefits policies. 3\. **Strategic results lever** - puts in place the policies and practices that produce the human capital the company needs to achieve its strategic goals. **Evidence-Based HRM** - using the best-available evidence in making decisions about the HRM practices you are focusing on. **Types of evidences:** a\. **Actual measurements** (such as, how did the trainees like this program?) b\. **Existing data** (such as, what happened to company profits after we installed this training program?) c\. **Research studies** (such as, what does the research literature conclude about the best way to ensure that trainees remember what they learn?). **4. Sustainability** - Companies' efforts should be sustainable, by which they mean judged not just on profits, but also on their environmental and social performance as well. - **5. Employee Engagement** - Refers to being psychologically involved in, connected to and committed to getting one's jobs done. - Vital to employers today because it drives performance. 1. Leadership development programs 2. New employee recognition programs 3. Improved internal communications programs,  4. A new employee development program 5. Modifying its compensation and other policies. **6. Ethics** - Principles of conduct governing an individual or a group; specifically, the standards you use to decide what your conduct should be **[HUMAN RESOURCE MANAGER COMPETENCIES]** - The **Society for Human Resource Management (SHRM)** introduced a "competency model" (called the SHRM Body of Competency and KnowledgeTM); it itemizes the competencies, skills, and knowledge and expertise human resource managers need. **[8 Competencies]** **1. Leadership and Navigation**- The ability to direct and contribute to initiatives and processes within the organization. **2. Ethical Practice-** The ability to integrate core values, integrity, and accountability throughout all organizational and business practices **3. Business Acumen**- The ability to understand and apply information with which to contribute to the organization's strategic plan. **4. Relationship Management**- The ability to manage interactions to provide service and to support the organization **5. Consultation**- The ability to provide guidance to organizational stakeholders **6. Critical Evaluation**- The ability to interpret information with which to make business decisions and recommendations. **7. Global and Cultural Effectiveness**- The ability to value and consider the perspectives and backgrounds of all parties. **8. Communication**- The ability to effectively exchange information with stakeholders. *The basic knowledge of each function's principles and practices they need here include, according to SHRM:*  **Manager** -- someone who is responsible for accomplishing the organization's goals, and who does so by managing the efforts of the organization's people. **Strategic Planning** -- the process by which top management determines overall organizational purposes and objectives and how they are achieved. **Manpower Planning/HR Planning/Workforce Planning** -- primary source for any company, process of estimating the optimum number of people required for completing a project, task or goal within time. **Staffing** -- determining how many and what type of people should be hired, recruiting prospective employees, selecting employees, setting performance standards, compensating employees, evaluating performance, counseling, training, and developing employees. - Execution of the plans from Manpower Planning - **Markov Analysis:** forecast availability of internal job candidates. -**Predictive Workforce Monitoring**: paying continuous attention to workforce planning issues **Recruitment** -- attracting people with right qualifications to apply for the job. ▪ **Internal**: within the org, enhance employee morale and motivation ▪ Done thru **Job Postings** or **rehiring a employee** who already left the organization ▪ **External**: outside the organization Through: 1. **Media Advertisement** 2. **Employee Agencies and Search Firms** - **Employee Agencies:** outsourced agencies that helps the company for recruitment - **Executing Search Firms**: the jobs they represent tend to be higher-paying, non-entry level positions  - **Public Employment Agencies:** designed primarily to help the unemployed find work, but they often offer services such as career advisement and resume preparation 3\. **Employee Referrals** - current employees recommend someone for hiring 4\. **Direct Mail** -- an employer obtains a mailing list and send help-wanted letters or brochures to people through the mail 5\. **Internet** -- employer-based websites, internet recruiters. 6\. **Job Fairs** -- designed to provide information in a personal fashion to as many applicants as possible. 7\. **Nontraditional Population** -- developing recruitment strategies for minorities, inmates, PWDS etc. 8\. **Passive Applicants** -- recruiters try to find ways to identify hidden talent and convince them to apply for a job with their company. **Interviews** -- most commonly used method to select  employees. **Clarifiers**: allow the interviewer to clarify information in the resume, cover letter, and application, fill in gaps, and obtain necessary information. **Disqualifiers**: questions that must be answered a particular way or the applicant is disqualified. **Skill-Level Determiners:** tap an interviewee's level of expertise. **Future-Focused Questions/Situational Questions:** ask what they would do in a particular situation **Past-Focused Questions/Patterned Behavior Description Interviews/Behavioral Questions:** focused on previous behavior **Organizational-Fit Questions:** tap the extent to which the applicant will fit into the culture of an organization or with the leadership of a particular supervisor. **[Structure]** **1. Structured** -- source is job analysis, all participants are asked with the same questions and there is a standardized scoring key \- more reliable and valid **2. Unstructured** -- freely asking anything they want \- **Primacy Effects**: first impression affected the evaluation \- **Contrast Effects**: the interview performance of one applicant may affect the interview score given to the next applicant \- **Negative-Information Bias:** negative information apparently weighs more heavily that positive information \- **Interviewer-Interviewee Similarity:** interviewee will receive a higher score if she is similar to the interviewer in terms of personality, attitude, gender, or race **[Style]** 1\. **One-on-One** -- one interviewer, one applicant 2.**  Serial** - series of single interviews \- e.g., first interview with recruitment manager, then HR head, to immediate supervisor, then CEO 3\. **Return** -- similar to serial interviews with difference being a passing of time between the first and subsequent interviews \- e.g., returning the next day for another interview 4\. **Panel** -- multiple interviewers, one applicant 5\. **Group** -- multiple applicants were interviewed at the same time 6\. **Serial-Panel-Group** -- series of panel and group interviews **[Medium]** 1\. **Face-to-Face** - both the applicant and interviewer are at the same room 2\. **Telephone** -- often used to screen applicants but do not allow the use of visual cues 3\. **Videoconference** -- the applicant and the interviewer can hear and see each other, but the interview is remote 4\. **Written** -- involve the applicant answering a series of written questions **Resume** -- summaries of an applicant's professional and educational background; views as a history of your life or an advertisement of your skills. 1.  **Chronological** -- lists previous jobs in order from the most to least recent. 2\. **Functional** -- organizes jobs based on skills required to perform them rather than the order they were worked. 3\. **Psychological** -- contains the strengths of both chronological and functional styles **Taylor-Russell Tables** -- designed to estimate the percentage of future employees who will be successful in the job if an organization uses a particular test. - Taylor & Russell (1939)  showed that a selection test is most useful  when validity is high and selection ratio is low. **Lawshe Tables** -- probability that a particular applicant will be successful; uses the base rate, test validity, and applicant percentile on a test to determine the probability of future success for that applicant. **Brogden-Cronbach-Gleser Utility Formula** -- computing the amount of money an organization would save if it used the test to select employees. -used to calculate the dollar amount of a utility gain from the use of a particular selection instrument under specified conditions. - (n)(t)(r)(SDy)(m) - cost of testing. savings = savings. (n)(t)(r)(SDy)(m) - cost of testing = number of employees hired per year. n = average tenure. t = test validity. r = standard deviation of performance in dollars. SDy = mean standardized predictor score of selected applicants. m = SDy. **Proportion of Correct Decisions** -- the only info needed is employee test scores and scores on criterion ▪ Type 1 Error: False Positive ▪ Type II Error: false negative  ▪ True Positive ▪ True Negative 1\. **Top-Down Selection** -- applicants are rank-ordered on the basis of their test scores 2\. **Rule of Three** -- the names of top three scorers are given to the person making the hiring decision 3\. **Passing Scores** -- determines the lowest score on a test that is associated with acceptable performance on the job 4\. **Multiple-Cutoff Approach** -- the applicants would be administered all of the test at one time 5\. **Multiple-Hurdle Approach** -- applicant is administered one test at a time 6\. **Banding** -- attempts to hire the top scorers while allowing some flexibility for affirmative action. **[Human Resource Development]** **Employee orientation (onboarding)** - procedure for providing new employees with basic background information about the firm, company, the job, and the work group \- it also familiarizes them with the corporate culture and helps them to quickly become productive \- Employee Handbook **Need to accomplish during orientation / onboarding:**  **Directly after orientation,** **TRAINING should begin.** - **Training** - the process of teaching new or current employees the basic skills they need to perform their jobs. - **Negligent Training**- where an employer fails to train adequately and an employee subsequently does harm to third parties, the court will find the employer liable." **Training and Development (T&D)** - Heart of a continuous effort designed to improve employee  competency and organizational performance. - Includes training, career development, organizational  development, and organizational learning. **Training** -- provides learners with knowledge and skills needed for their present job. **Development** -- involves learning that goes beyond today's job and has a more long-term focus.  - Prepares employees to keep pace with the organization as it changes and grows **[ADDIE]** The gold standard here is still the basic analysis-design-develop-implement-evaluate (ADDIE) training process. 1. **Analyze the training needs.** - The training needs analysis may address the employer's strategic/longer-term training needs and/or its current training needs. - Most training efforts aim to improve current performance---specifically training new employees, and those whose performance is deficient. - Task analysis to identify new employees' training needs (specific skills required), and Performance analysis to identify current employees' training needs (performance deficiency). - Job specifications and job description. **Organizational Analysis** - Determine those organization factors that either facilitate or inhibit training effectiveness - Training will only be effective if the org is willing to provide supportive climate for training, it can afford an effective program, employees want to learn, and the goals of a program are consistent with those of the organization. **Task Analysis** - Use of the job analysis to identify the tasks performed by each employee, the condition under which these tasks are performed, and the competencies needed to perform the tasks under identified conditions. **Person Analysis** - Determining which employees needs training and which areas not every employee needs further training for every task performed. - Based on performance appraisal scores, surveys, interviews, skill and knowledge tests, and critical incidents. 2. **Design the overall training program**. - Planning the overall training program, setting learning objectives and it should address performance deficiencies - Must be practical (consider financial constraints) - Creating a motivational learning, make it meaningful, make transfer easy, reinforce learning and make sure the transfer of knowledge. 3. **Develop the course (actually assembling/creating the training materials).** - Assembling the program's training content and materials/ training equipments 4. **Implement training**, by actually training the targeted employee group using methods such as on-the-job or online training. a\. **On the Job Training** - training a person to learn a job while working on it **Types of OJT** 1\. **Coaching / understudy** - experienced worker or supervisor trains the employee. 2\. **Job rotation** - moves from job to job at planned intervals. 3**. Special assignments** - give lower level executives first hand experience in working on actual problem. 4\. **Peer to peer training**- the employer selects several employees who spend several days per week over several months learning what the technology is then spread the new skills and values to their colleagues back on the job. b\. **Apprenticeship training** - structured process by which people become skilled workers through a combination of classroom instruction and on-the-job training. c\. **Informal training** - Training experts use the notation "70/20/10" to show that as a rule, 70% of job learning occurs informally on or off the job, 20% reflects social interactions, and only 10% is actual formal training. d\. **Job instruction training** - listing each job's basic tasks, along with key points, in order to provide step - by step training for employees. e\. **Lectures** - quick and simple way to present knowledge to large groups f\. **Programmed learning** - step by step, self learning method that is composed of three parts: 1\. Presenting questions, facts, or problems to the learner 2\. Allowing the person to respond 3\. Providing feedback on the accuracy of answers, with instructions on what to do next - Reduces training time, learning at own pace and getting immediate feedback. - Also reduce risk of error **g. Behavior Modeling** - training technique in which trainees are first shown good management techniques in a film, are asked to play roles in a simulated situation, and are then given feedback and praise by their supervisor 1\. Modeling 2\. Role playing 3\. Social reinforcement 4\. Transfer of training **h. Audiovisual-Based Training-** techniques like DVDs, films, PowerPoint, and audiotapes are still used. **i. vestibule training**- trainees learn on the actual or simulated equipment but are trained off the job (perhaps in a separate room or vestibule). **j. electronic performance support systems (EPSS)**- Sets of computerized tools and displays that automate training, documentation, and phone support.  - Performance support systems are modern job aids (instructions, diagrams, or similar methods available at the job site to guide the worker. **k. Videoconferencing-** Computer based training (CBT) - training methods that use interactive computer based systems to increase knowledge or skills. - Virtual reality (VR) puts the trainee in an artificial three-dimensional environment that simulates events and situations experienced on the job. - Simulated Learning and Gaming **l. Lifelong and Literacy Training Techniques** - providing employees with continuing learning experience over their tenure with the firm, with the aim of ensuring they have the opportunity to learn **m. Team training**- Teamwork does not always come naturally. Focuses on technical, interpersonal, and team management issues - **Cross training** - employees do different tasks or jobs than their own ; facilitates flexibility and job rotation. **n. Internet based training** - **Learning portal** - offers online access to training courses - **Learning Management Systems** ex: Blackboard, Canvas - **Blended learning** - use of multiple delivery methods - **Virtual classroom** - uses collaboration softwares to enable multiple remote learners to participate in live audio and visual discussions, communicate via written text, and learn via content such as PPT slides. 5. **Evaluate the course's effectiveness.** Check if there's transfer of learning - **Reactions** -- the extent to which the trainees liked the training program related to its usefulness, and quality of conduct - **Learning** -- the extent to which the principles, facts and techniques were understood and retained in memory by the employee. - **Behavior Change** -- changes in job-related behaviors or performance that can be attributed to training - **Transfer of Training**-  the extent to which an employee generalizes knowledge and skill learned in training to the workplace, as well as maintains the level of skill proficiency or knowledge learned in training - **Organizational Results** -- refer to such outcomes as enhanced productivity, lower costs, and higher product or service quality. \-  **ROI is an important results criterion** \- **Benchmarking:** process of monitoring and measuring a firm's internal processes, such as operations, and then compare the data with information from companies that excel in those areas **[Management Development]** - Management development is any attempt to improve managerial performance by imparting knowledge, changing attitudes, or increasing skills. - Any attempt to improve current or future management performance by imparting knowledge, changing attitudes, or increasing skills. **Succession planning** involves developing workforce plans for the company's top positions. Succession planning is the ongoing process of systematically identifying, assessing, and developing organizational leadership to enhance performance. **It entails three main steps:** 1. Identify key position needs, 2. Develop inside candidates, and 3. Assess and choose inside (or outside) candidates who will fill the key positions. **Managerial on-the-job training methods** 1. **Job rotation**- Job rotation means moving managers from department to department to broaden their understanding of the business and to test their abilities. 2. **The coaching/under study approach**-  the trainee works directly with a senior manager or with the person he or she is to replace. 3. **Action learning**- A training technique by which management trainees are allowed to work full-time analyzing and solving problems in other departments. **[Off-the-Job Management Training and Development Techniques]** **Case study method**- A development method in which the manager is presented with a written description of an organizational problem to diagnose and solve. **Management game**- A development technique in which teams of managers compete by making computerized decisions regarding realistic but simulated situations. **Role playing**- A training technique in which trainees act out parts in a realistic management situation I**n-house development center**- A company-based method for exposing prospective managers to realistic exercises to develop improved management skills. **Executive coach**- An outside consultant who questions the executive's associates in order to identify the executive's strengths and weaknesses, and then counsels the executive so he or she can capitalize on those strengths and overcome the weaknesses.. **[Characteristics of Effective Leadership Development Programs]** - The best programs begin with a thorough needs analysis to determine tangible program goals;  - Mandatory participation in the program is as effective as voluntary participation;  - Self-administered programs are less effective than trainer-based programs;  - Practice-based programs are more effective than information-based programs. - Providing feedback to trainees boosts the program's effectiveness; - On-site programs (at the company's facilities) are generally more effective than off-site training programs;  - Face-to-face leadership training programs are more effective than virtually based programs; - Leadership training is as effective for senior-level leader as for lower-level ones. **[Managing Organizational Change Programs]** **Lewin's Change Process**- all behavior in organizations was a product of two kinds of forces:  1. Those striving to maintain the status quo and  2. Those pushing for change **3 Steps to the change process:** 1\. **Unfreezing**: reducing the forces that are striving to maintain the status quo a\. Can be through presenting provocative problem or behavior for people to recognize the need to change 2\. **Moving**: developing new behaviors, values, and attitude a\. May be accomplished through org structure changes, conventional trainings, and development activities 3\. **Refreezing**: building the reinforcement to make sure the org doesn't slide or go back to its former ways of doing things **To bring about a desired organizational change at work:** 1\. Establish sense of urgency 2\. Mobilize commitment (through joint diagnosis of problems) 3\. Create a guiding coalition 4\. Develop and communicate a shared vision  5\. Help employees make the change 6\. Aim first for attainable short term accomplishments 7\. Reinforce the new ways of doing things 8\. Monitor and assess progress **[Organizational Development]** - A special approach to organizational change in which employees themselves formulate and implement the change that's required. 1\. Usually involves action research. 2\. Applies behavioral science knowledge to improve organization's effectiveness. 3\. Changes the organization in a particular direction -- toward empowerment, improved problem solving, responsiveness, quality of work, and effectiveness **Evaluating the Training Effort** - There are several things you can measure: participants' reactions to the program, what (if anything) the trainees learned from the program, and to what extent their on-the-job behavior or results changed as a result of the program. **Training Effects to Measure** 1\. Reaction 2\. Learning 3\. Behavior 4\. Results **Performance Appraisal** - Evaluating an employee's current and/or past performance relative to his or her performance standards. - compare *"what should be" with "what is."* - means evaluating an employee's current and/or past performance relative to his or her performance standards **3 steps in conducting PA:** 1\. Setting work standards 2\. Assessing actual performance relative to the standards 3\. Providing feedback with the aim of helping him or her to eliminate performance deficiencies or to continue to perform above par. Defining the job means making sure that you and your subordinate agree on his orher duties and job standards and on the appraisal method you will use **Reasons for Performance Appraisal:** 1. Base pay, promotion, and retention decisions 2. PA plays a central role in performance management 3. To correct any deficiencies, and reinforce subordinate's strengths 4. Provide opportunity to review employee's career plans based on his/her strengths and weaknesses 5. Enable supervisor to identify if training is needed **Defining the Employee's Goals and Performance Standards** 1. Goals 2. Job dimensions or traits 3. Behaviors or competencies **[Who will do the appraisal?]** 1\. **Supervisors** -- most common type of performance appraisal 2\. **Peers** -- often see the actual behavior since they work directly with the employee \- employees tends to react worst to negative peer evaluation 3\. **Subordinates** -- also called upward feedback 4\. **Customers/Clients** -- provide feedback on employee performance by filling complaints or complimenting the manager about one of her employees - **Secret Shoppers:** current customers who have been enlisted by a company to periodically evaluate the service their receive 5\. **Self-Appraisal** -- allowing an employee to evaluate her own behavior and performance 6\. **Rating Committees** -- consists of employee's immediate supervisor and three or four other supervisors. - help cancel out problems such as biases and provide a way to include in the appraisal the different facets of an employee's performance observed by different appraisers. 7\. **360-Degree Feedback**- employer collects performance information all around an employee  - from his or her supervisors, subordinates, peers, and internal or external customers.  **[Performance Appraisal Techniques]** 1\. **Graphic Scale Method** - A scale that lists a number of traits and a range of performance for each. The employee is then rated by identifying the score that best describes his or her level of performance for each trait.  **2. Alternation Ranking Method** - Ranking employees from best to worst on a particular trait, choosing highest, then lowest, until all are ranked 3\. **Paired Comparison Method** - Ranking employees by making a chart of all possible pairs of the employees for each trait and indicating which is the better employee of the pair.  4\. **Forced Distribution Method** - Similar to grading on a curve; predetermined percentages of ratees are placed in various performance categories 5\. **Critical Incident Method** - Keeping a record of uncommonly good or undesirable examples of an employee's work-related behavior and reviewing it with the employee at predetermined times. a\. Not for pay raise purposes. 6\. **Narrative Forms** - supervisor assesses the employee's past performance and required areas of improvement 7\. **Behaviorally anchored rating scales (BARS)** - An appraisal method that aims at combining the benefits of narrative critical incidents and quantified ratings by anchoring a quantified scale with specific narrative examples of good and poor performance **5 steps in developing BARS:** 1\. Write critical incidents 2\. Develop performance dimensions 3\. Reallocate incidents 4\. Scale the incidents 5\. Develop a final instrument **8. Management by Objectives (MBO)** - multistep company wide goal setting and appraisal program **a. Steps in doing MBO:** 1\. Set the organization's goal 2\. Set departmental goals 3\. Discuss departmental goals 4\. Define expected results (set individual goals) 5\. Conduct performance reviews 6\. Provide feedback **9. ** **10. Electronic performance monitoring (EPM)-** Having supervisors electronically monitor the amount of computerized data an employee is processing per day, and thereby his or her performance. **11. Conversation Days** -- no explicit performance ratings, just manager-employee conversations about improvement and growth **Dealing with Rater Error Appraisal Problems** **Potential Rating Errors** 1\. **Unclear Standards**- might result in unfair appraisals, because the traits and degrees of merits are ambiguous 2\. **Halo effect**- influence of a rater's general impression on ratings of specific ratee qualities 3\. **Central tendency-** rating all employee average 4\. **Strictness / Leniency**- rater is very strict/lenient and gave the employees lower/ higher scores, rates at the lower/higher end of the scale 5\. **Recency effects**- rating the employee based on their recent performance rather than their overall performance over the year **Managing the Appraisal Interview** **Appraisal interview** - An interview in which the supervisor and subordinate review the appraisal and make plans to remedy deficiencies and reinforce strengths ; often uncomfortable **4 types of situation:** 1\. **Satisfactory---Promotable is the easiest interview:** The person's performance is satisfactory and promotion looms. a\. objective : develop specific development plans. 2\. **Satisfactory---Not promotable** - performance is satisfactory but for whom promotion is NOT possible 3\. **When the performance is unsatisfactory BUT correctable.** 4\. **Finally, the interview where the employee is unsatisfactory and the situation is uncorrectable may be particularly tense.** a\. Dismissal is often the preferred option. **Performance Management** **Total Quality Management** - organization wide programs that integrate all functions and processes of the business such that all aspects of the business including design, planning, production, distribution, and field service are aimed at maximizing customer satisfaction through continuous improvements **Performance Management** - The continuous process of identifying, measuring, and developing the performance of individuals and teams and aligning their performance with the organization's goals. **6 basic elements of Performance Management:** 1. **Direction sharing** means communicating the company's goals to all employees and then translating these into doable departmental, team, and individual goals.  2. **Goal alignment** means having a method that enables managers and employees to see the link between the employees' goals and those of their department and company. 3. **Ongoing performance monitoring** usually means computerized systems to measure the team's and/or employee's progress toward meeting performance goals. 4. **Ongoing feedback** means providing face-to-face and computerized continuous feedback regarding progress toward goals. 5. **Coaching and developmental support** should be part of the feedback process. 6. **Recognition and rewards** should provide the incentives to keep the employee's goal-directed performance on track. **Basics of Career Management** 1. **Career management** - The process for enabling employees to better understand and develop their career skills and interests, and to use these skills and interests more effectively. 2. **Career development** - The lifelong series of activities that contribute to a person's career exploration, establishment, success, and fulfillment. 3. **Career planning** - The deliberate process through which someone becomes aware of personal skills, interests, knowledge, motivations, and other characteristics; and establishes action plans to attain specific goals **Roles in Career Management** 1. **The Manager** - Provide timely and objective performance feedback. - Provide developmental assignments and support. - Participate in career development discussions.  - Act as coach, appraiser, advisor, and mentor who listen to and clarify employee's career plans - Provide career oriented training, development, and promotional opportunities 2. **The Individual/Employee** - Accept responsibility for own career. - Assess interests, skills, and values. - Seek out career information and resources. - Establish goals and career plans. - Matching strengths and weaknesses with occupational opportunities. - Follow through on realistic career plans - Ideal future self to strive for 3. **The Employer** - \[before hiring\] realistic job interviews can help prospective employees gauge whether the job is a good fit for them. - Especially for newly graduates, since first job can be crucial for building confidence and more realistic picture of what he or she cannot do **Reality shock** - Results of a period when the new employee's high job expectations confront the reality of a boring or  otherwise unattractive work situation **Job rotation** - help the person develop a more realistic picture of what he or she is good at, and thus the career moves that might be best. **Mentoring ** - advising, counseling, and guiding.  - May be formal or informal - Focus on relatively hard to reverse longer term career issues and often touches the person's psychology **Coaching ** - educating, instructing, and training subordinates - Focuses on daily tasks that can be easily relearned **Reverse Mentoring: ** - process in which older employees learn from younger ones **Career Management** - Process of enabling employees to better understand and develop their career skills and interests, and to use these skills and interests more effectively - After appraising performance, it is often necessary to address career related issue and to discuss these issues with subordinates. **Career** - The occupational positions a person has had over many years; general course that a person chooses to pursue throughout his working life. **Career Path:** a flexible line of movement through which a person may travel during his or her work life **Career Development** - Formal approach used by the organization to ensure that people with proper qualifications and experiences are available when needed - Lifelong series of activities that contribute to a person's career exploration, establishment, success, and fulfillment - Must be closely parallel individual career planning if a firm is to retain its best and brightest workers. 1. **Traditional Career Path** -- employee progresses vertically upward in the organization 2. **Network Career Path** -- contains both vertical sequence of jobs and series of horizontal opportunities. Recognizes the interchangeability of experience at certain levels and the need to broaden experience at one level before promotion to a higher level 3. **Lateral Skill Path** -- allows for lateral moves within the firm, taken to permit an employee to become revitalized and find new challenges learning a different job, an employee can increase his or her value to the organization and also become rejuvenated and re-energized.  * * - *job enlargement, job enrichment* 4\. **Dual-Career Path** -- recognizes that technical specialists can and should be allowed to contribute their expertise to a company without having to become managers. \- advises without entering the management due to specialization to a certain knowledge. (advancement w/out managament) 5**. Demotion** -- process of moving a worker to a lower level of duties and responsibilities, typically involves a reduction in pay. 6\. **Free Agents** -- people who take change of all or part of their careers by being their own bosses or by working for others in ways that fit their particular needs or wants. Manager should understand that retaining employees is a talent management issue and the best retention strategies are multifunctional. **Talent Management** -- the system or strategy used by an organization to effectively recruit, hire, develop, and retain employees; refers to the attraction, selection, and retention of employees **Job withdrawal** - actions intended to place physical or psychological distance between employees and their work environments **Examples or types of job withdrawals:** ○ Absences ○ Voluntary turnovers ○ Taking undeserved work breaks ○ Spending time in idle conversations ○ Neglecting job responsibilities ○ Psychological withdrawal (ex: daydreaming) **Turnover**  - the rate at which employees leave the firm -- varies among industries - turnovers usually only reflect those who leave voluntarily **Promotions** - advancement to a position of increased responsibility. **Transfer** - reassignments to similar positions in other parts of the firm, usually with NO salary or grade change. **Dismissal** - Involuntary termination of an employee's employment with the firm, many dismissals  ARE avoidable - Unsatisfactory performance - Misconduct; Insubordination - Lack of qualifications for a job - Changed requirements of the job - Terminate at will *\*Wrongful discharge* **Termination interview** - The interview in which an  employee is informed of the fact that he or she has been dismissed. **Outplacement counseling** - A formal process by which a terminated person is trained and counseled in the techniques of self-appraisal and securing a new position. **Exit interview** - Interviews with employees who are leaving the firm, conducted for obtaining information about the job or related matters, to give the employer insight about the company. **Layoff** - An employer sending employees home due to a lack of work; this is typically a temporary situation. **Downsizing** - The process of reducing, usually dramatically, the number of people employed by a firm. Also called "productivity transformation programs **Occupational Orientation (HOLLAND) - RIASEC** 1\. **Realistic orientation.** These people are attracted to occupations that involve physical activities requiring skill, strength, and coordination. a\. forestry, farming, and agriculture 2\. **Investigative orientation.** Investigative people are attracted to careers that involve cognitive activities (thinking, organizing, understanding) rather than affective activities (feeling, acting, or interpersonal and emotional tasks). a\. biologist, chemist, and college professor 3\. **Artistic orientation.** People here are attracted to careers that involve self-expression, artistic creation, expression of emotions, and individualistic activities. a\. artists, advertising executives, and musicians 4\. **Social orientation.** These people are attracted to careers that involve interpersonal rather than intellectual or physical activities. a\. clinical psychology, foreign service, and social work 5\. **Enterprising orientation.** Verbal activities aimed at influencing others characterize enterprising personalities. a\. managers, lawyers, and public relations executives 6\. **Conventional orientation.** A conventional orientation favors careers that involve structured, rule regulated activities, as well as careers in which it is expected that the employee subordinate his or her personal needs to those of the organization. a\. accountants and bankers