HRM Merge PDF

HUMAN RESOURCE MANAGEMENT Chapter 1 – Introduction to Human Resource Management (HRM) Intended Learning Outcomes: At the end of this chapter, the students are expected to: 1. define HRM and other key terms; 2. explain the roles of HRM; 3. apply information technology (IT) in HR; 4. describe human resource information system (HRIS); and 5. discuss labor relations and other terms. Every organization utilizes different capital in order to function. For example, a business process outsourcing firm would need computers, internet and software. While capital is important, these would be useless without human labor. All organizations would need human labor – including their physical and mental abilities, skills, talent, etc. – to make these capital work. Thus, human resources are the greatest assets of the company. The management of human resources will be our focus of this course. 1.1 What is Human Resource Management? Human resource management (HRM) is the process of employing people, training them, compensating them, developing policies relating to them, and developing strategies to retain them. Over the years, the role of human resources has evolved from merely doing administrative tasks to being part of the strategic team. It is necessary to point out that every manager has some roles relating to human resource management. Just because managers do not have the title of HR manager does not mean they will not perform all or at least some of the HRM tasks. For example, most managers deal with compensation, motivation, and retention of employees – making these aspects not only part of HRM but also part of management. Human capital in reference to workers now takes the place of human resources. Human capital refers to the attributes gained by a worker through education and experience. These can help the worker develop competencies, knowledge, and personality attributes that in turn could help him/her perform and produce economic value for his/her employer. 1.2 Roles of HRM The primary roles of HRM include: job analysis and staffing, organization and utilization of work force, measurement and appraisal of work force performance, and implementation of reward systems for employees. 1.3 Applications of Information Technology (IT) in HR The Philippines has all the potential to be an active player in the digital domain. At present, joint government and private sector groups are unified in pushing for the development of e-commerce in the Philippines. It is seen as an important driving force that could fuel the country’s economic growth and development. Moreover, the government is positioning the country to serve as host to various-oriented businesses particularly in the IT and related industries. This only implies that HR should not be left behind. The HR plan should be aligned with the business plan of the organizations. It is then critical for HR people to understand and initiate useful IT applications in HR aligned with the company goal of efficiency and profitability. Some of these are the following: 1. Use of job boards and other similar web-based recruitment (e-recruitment) – provides accessibility to a wider range of applicants for the job and usually communicates job vacancies and application procedures. Web recruitments include resume submission, quick interactive screenings methodologies, and in some cases, online testing and experience profiling. Applicants get instant feedback on their employment application. 2. E-selection uses technology to help organizations more efficiently manage the process of identifying the best job candidates – those who have the right knowledge, skills, and abilities for each job and who may best fit the organization. This technology can reduce the time and effort involved in selecting the most qualified applicant for the job including the use and interpretation of test results. 3. Employment kiosk provides updates on employee status and other pertinent information initiated and made by the employees themselves. This employee self-service delivery system ensures that the employee self-service application is the use of interactive voice response (IVS) systems. 4. E-learning facilitates the learning process by providing just-in-time learning opportunities. The use of a Learning Management System (LMS) will allow HRD managers to focus on the more important aspects of their job rather than being concerned with course registration and following up attendance to training programs. Online multi-rater assessment tools can help managers provide immediate feedback to their members and link feedback to development opportunities. 5. Electronic Performance Support System (EPSS) provides online coaching and mentoring services. Managers and employees can access organizational information through an EPSS application. Online performance management systems also provide managers a very effective tool to communicate and establish key result areas (KRAs), objectives and required competencies for employees. This can make performance appraisals (PA) more objective and less biased. 6. Salary and payroll administration, for most companies, is now linked to performance management systems, time and attendance, and other employee benefits, and pay systems. This ensures timely release of salaries, wages, bonuses, and other similar compensation. 7. Growth of social networking sits like Facebook and Twitter. One of the challenges for HR executives is learning to integrate information from social networking sites. HRM is evolving into a more technology-based profession. Technology has transformed the way in which HR offices manage and communicate with employees. Employees see the face of HR as a portal rather than a person. Employees can even work virtually and with teams all over the world simultaneously. 8. Use of email or electronic mail has emerged as the heart and soul of corporate communication. With this development, HR department with the help of their IT experts should develop unified messaging that will allow workers to check and store emails related to work in one single inbox. 9. Use of IT to foster customer involvement. With this development, HR departments should start thinking how to use these social media to improve and enhance employee services and employee relations. 10. Telecommuting/Teleworking is any form of substituting information technologies (telecommunications and/or computers) to establish remote or virtual office – the act of moving the work to the workers instead of moving the workers to work. It allows employees to work in a place with access to the internet. Teleworking closes the gap between “where people live and work.” It provides jobs near homes or transforms homes into virtual office extensions. Benefits of Teleworking/Telecommuting 1. Employer Benefits a. Increased productivity, stimulated by lower absenteeism, higher employees’ concentration on work, and fewer distractions b. Less travel time and better use of employee’s peak efficiency time c. Decreased turnover because employee moral is higher and more work options such as job or office sharing become possible once long commutes are eliminated d. Hiring incentive to new employees e. An opportunity to tap new labor pools such as parents with young children, persons with disabilities, and the like 2. Employee benefits a. They save money on fuel, car maintenance, and insurance b. A large reduction of stress c. More time for their families; more participation in their communities d. Fewer distractions on the job, greater work autonomy, and more relaxed work environment e. Closer to their workplaces and thus can save hours each day on their commute to work 1.4 Human Resource Information System (HRIS) HRIS is a database system that keeps important information about employees in a central and accessible location, DeCenzo and Robins (2005). It merges HRM as a discipline and, in particular, its basic HR activities and processes with the IT field. It is an integrated system designed to provide information used in HR decision making. It is a system for gathering and maintaining data that describe the HR; transforming data into information; and reporting the information to users. Purposes of HRIS a. To improve the efficiency with which data on employees and HR activities are compiled b. To provide HR information more rapidly and more easily to be used in management’s decision making Some of the Benefits of HRIS Solutions 1. Salary and Payroll Administration Payroll management is often a tedious process that requires a high level of accuracy, timeliness, and effective financial controls. Aligned with local statutory standards and regulatory specifications, HRIS can help keep work flow costs in check and ensure that all employees are paid on time in any circumstances. 2. HR Training It provides control of internal organizational training from delegating participants to projecting training project, course scheduling and enrolment, to training assessments and individual performance appraisals. 3. Self-service Benefits Transactions Employees can gain online access to their benefits package at their own leisure so they can focus on more demanding tasks at hand during office hours. They can easily understand entitlements because all back pay and auto-prorated amount concerning overtime, salary, and other financial matters are clearly stated for easy reference. Chapter 2 Job Analysis Intended Learning Outcomes: At the end of this chapter, the students must be able to: 1. Explain job analysis and its importance 2. Distinguish job terms 3. Discuss the specific information provided by job analysis and its uses 4. Compare and contrast the methods and steps in the conduct of job analysis 5. Differentiate job description and job specifications 2.1 Job Analysis and Its Importance Job analysis is the process of studying a job to determine which activities and responsibilities it includes, its relative importance to other jobs, the qualifications necessary for performance of the job and the conditions under which the work is performed. Job analysis also known as work analysis is a family of procedures to identify the content of a job in terms of the activities it involves in addition to the attributes or requirements necessary to perform those activities. Job analysis provides information to organizations that helps them determine which employees are best fit for specific jobs. Successful Human Resource Management (HRM) practices can lead to outcomes that create competitive advantage. When properly performed, job analyses can enhance the success of HRM practices by laying the required foundation. 2.2 Different Job Terms a. Job – group of positions that are similar in their duties. In some instances, only one position may be involved, simply because no other similar position exists. For example, the position of the chief accountant also constitutes a job since there is only one chief accountant in the organization. b. Job Analysis – the procedure used for determining/collecting information relating to the operations and responsibility of a specific job. The end results are job description and job specifications. c. Job Description – organized, factual statements of the duties and responsibilities of a specific job. It tells what is to be done, how it is done, and why. It is a list of job duties, responsibilities, reporting relationships, working conditions and supervisory responsibilities. d. Job Specifications – a written explanation of the minimum acceptable human qualities necessary for effective performance of a given job. It designates the qualities required for acceptable performance, which are requisite education, skills, personality, and so on. e. Job Classification – grouping on jobs on some specified basis such as kind of work or pay. It can refer to a grouping by any selected characteristics but preferably used most often in connection with pay and job evaluation. f. Job Evaluation – systematic and orderly process of determining the worth of a job in relation to other jobs. The objective is to determine the correct rate of pay. g. Occupation – group of jobs that are similar as to kind of work and are found throughout an industry. An occupation is a category of work found in many firms. h. Position – consists of the responsibility and duties performed by an individual. There are as many positions in a firm as there are employees. i. Tasks – coordinated and aggregated series of work elements used to produce an output. Job analysis provides information in several cases including the following: 1. How much time is taken to complete basic tasks? 2. How are tasks grouped together into a job? 3. How can a job be designated so that the employee performance can be improved? 4. What kind of skills is needed to perform a given job? 5. What kind of persons is best suited to perform a certain type of job? All these information provides a foundation for other HR activities. 2.3 Specific Information Provided by Job Analysis and Its Uses Specific Information 1. Job title and location 2. Organizational relationship – brief explanation of the number of persons supervised (if applicable) and job title of the position supervised. It also reflects supervision received. 3. Relation to other jobs – describes and outlines the coordination required by the job. 4. Job summary – condensed explanation of the context of the job. 5. Information concerning job requirements – usually provides information about machines, tools, materials, mental complexity and attention required, physical demands, and working conditions. It varies from job to job. Uses 1. Preparing the job description and writing the job specifications As a result of job analysis, it provides a complete description that contains the job summary, job duties and responsibilities, machine and equipment used, and some indications of the working conditions. It also used to describe individual traits and characteristics required in performing the job well. 2. Recruitment and selection Job analysis information is useful when searching for the right person to fill the job. It helps to seek and find the type of people that will contribute to and suit the needs of the organization. 3. Determining the rate of compensation Job analysis information is also essential for estimating the value of and appropriate compensation for each job. This is because compensation usually depends on the job’s required skill and educational level, safety hazards, degree of responsibility, and so on, all of which are assessed through job analysis. 4. Performance appraisal It involves comparison of actual versus planned output. Job analysis information is used to identify the standards and performance objectives and specific activities to be performed against which employees are evaluated. It is used to acquire an idea of acceptable level of performance for a job. 5. Training Job analysis information is used to design training and development programs because the analysis and resulting job description show the skills and therefore the kind of training that is required. Training and development are conducted to satisfy these skills and competency requirements. 6. Career planning and development The movement of individuals into and out of positions, jobs, and occupation is a common procedure in organizations. Job analysis provides clear and detailed information to employees on career movement. 7. Safety The safety of a job depends on the proper layout, standards, equipment, and other physical conditions. What a job entails, and the type of people needed contribute information to establish safe procedures so that the unsafe practices can either be changed or discontinues. 8. Labor relations An attempt of an employee to add or subtract from the duties listed, as a result of job analysis, is already a violation of this standard. The labor union as well as the management is interested in this matter. Controversies often result and a written record of the standard job jurisdiction is valuable in resolving such disputes. 2.4 Methods Used and Steps in the Conduct of Job Analysis Methods Used in Job Analysis 1. Interview Job analysis information can be obtained by interviewing the job incumbent or by group interviews with group of employees doing the same job or by interviewing the supervisor who is knowledgeable about the job. Interview information is particularly valuable for professional and technical jobs that mainly involve thinking and problem solving. 2. Observation Direct observation is especially useful when jobs consist mainly of observable. physical activity. Jobs like those of a janitor, production workers, and drivers are examples of these. On the other hand, observation is usually not appropriate when the job entails significant amount of mental activity, such as the work of the lawyer, financial analyst, and the like. 3. Questionnaires The use of questionnaires is usually the least costly method for collecting large amount of information in a short period of time. Advantages of using the questionnaire method include the information gathered is quantitative in nature and can be easily updated as the job changes. It usually includes. questions asking the worker to describe the kinds of experiences, qualifications, and attitudes needed to perform the job. It also includes a detailed list of activities performed and the importance of each activity or the percentage of time spent in performing it. 4. Employee recording/use of logbook This is a recording by job incumbents of job duties, frequency of the duties, and when the duties are accomplished. This can produce a complete picture of the job, especially when supplemented with subsequent interviews with the worker and the supervisor. Steps in the Conduct of Job Analysis Step 1 – Examine the total organization and the fit if each job. Provide a broad view of how each job fits into the total fabric of the organization. This is to determine how the data will be used in HRM planning. HR managers should decide what data needs to be collected, the best method of collection, and the uses of the information in a comprehensive HRM strategy. Step 2 – Determine the purpose of Job Analysis Identify the use to which the information will be put, since this will determine the type of data to be collected and how to collect data. This requires studying the organization charts, job descriptions, and work process charts. Step 3 – Select job to be analyzed Since it is usually too costly and time consuming to analyze every job, a representative sample of jobs needs to be selected. Review relevant background information such as organization charts, process charts, and existing job descriptions. Organization chart shows how the job in question relates to other jobs and where it fits in the overall organization. It should identify the title of each position and, by means of interconnecting lines, show who reports to whom in the hierarchy. Process charts show the flow of inputs to and outputs from the job under study. Existing job description can provide a starting point for building the revised job description. Step 4 – Collect data by using acceptable job analysis techniques This involves the actual analysis of job by collecting data on job activities, required employee behavior, education, training, experience requirements, working hours, equipment used, required job duties, process workflow, working conditions, and human traits and abilities needed to perform the job. This is done using acceptable job analysis techniques. The information collected in Step 4 is. then used in Step 5 and Step 6 to develop the job description and job specifications. A job description and a job specification are usually two concrete products of the job analysis. 2.5 Writing Job Description and Job Specifications Job Description The original purpose of job description is to establish the level of difficulty of a specific position for the purpose of establishing pay levels. Over the years, new directions in management thinking point to a move from duty-oriented job description to role and competency-oriented descriptions. This does not become outdated as quickly and provides both supervisor and employees clarity on what, how, and even why of the position. In addition, it is easier to alter as the technologies, strategies, or customers' needs change. One way to begin creating role and competency description statement is to cluster related skills like customer service competency, which may include the following entries: anticipate customer needs; deliver on time; show care and concern; and help customer evaluate needs. Converted into behavioral statements for job description, it may be stated as: "Deliver commitments or service to meet or exceed customer satisfaction" or "Show care and concern to demonstrate customer importance and value." The value of utilizing the role and competency model is that these behaviors seldom change, even as the means of executing them evolve with modern technology or company strategy. In addition, if an employee has an objective standard to measure the performance of the job, it will be known whether the standards are being met. The first and immediate product of job analysis is the job description. As indicated, this is basically descriptive and constitutes a record of existing and pertinent job facts. These facts must be organized in some fashion in order to be usable. Suggested contents are given as follows: 1. Date written 2. Job status – full-time/part-time including salary 3. Job identification – The identification selection includes such information as job title, department, division, plant and code number of the job. 4. Job summary – a brief one or two sentence statement describing the purpose of the job and what outputs are expected from job incumbents. 5. Working relationship, responsibilities, and duties performed – Relationship statement shows the jobholder’s relationship with others inside and outside the organization. These include supervision received (to whom the job incumbent reports) and supervision exercised (who reports to the employee). Below is an example of a job description Job title: HR Manager Reports to: Vice President of HR Supervises: HR Assistant, Compensation, Analyst, and Benefits Clerk Coordinates with: All department managers and executive management Outside the company: Recruitment agencies, DOLE, union representative Responsibilities and duties should be presented in clear and precise statements and should include essential functions and major tasks, duties and responsibilities performed. The function of each job should be identified and explained for the benefit of the job holder. 6. Authority of incumbent – defines the limit of the jobholder’s authority, including his/her decision-making authority, direct supervision of other personnel, and budgetary limitation. 7. Competency requirements – education and experience including special skills required to perform a given job. 8. Working conditions – a list of the general working conditions involved with the job, location of the job, and other relevant characteristics of the immediate work environment such as hazards and noise levels. Below is an example of job specification: Position Title: Chief Accountant Division/Department: Accounting Department Reports to: General Manager Coordinates with: All Department Heads Supervises: All Accounting Personnel Job Specifications The job specification uses the job description to define the kind of human traits and experience required to do a specific job well. It shows what kind of person to recruit and for what qualities that person should be tested. Job specifications identify the minimum acceptable qualifications required for an employee to perform the job adequately. The job specification may be a separate section on the job description, a separate document entirely, or at the concluding part of the job description. The information contained in a job specification usually includes the following basic criteria: 1. knowledge – body information one needs to perform the job; 2. skills – the capability to perform a learned motor task such as word processing skills; 3. ability – the capability needed to perform non-motor tasks such as communication abilities; 4. personal characteristics – an individual’s traits such as tact, assertiveness, concern for others, etc.; 5. credentials – proof of documentation that an individual possesses certain competencies; 6. technical requirements – include criteria such as educational background, related work experience and training. Chapter 3 Recruitment and Selection of Employees Intended Learning Outcomes: At the end of this chapter, the students must be able to: 1. Describe recruitment 2. Analyze the tips to job applicants to avoid illegal recruitment 3. Compare and contrast recruitment process and plan 4. Analyze the sources of applicant and how to write a resume 5. Describe the selection process and its importance Recruitment Once there is an approved request to fill up a position, the HR will now develop an applicant pool using either internal or external recruiting. An organization needs to hire the most qualified people at the most competitive price. Qualified applicants can be in the established applicant pool. Effective employee selection procedure is limited by the effectiveness of the recruitment process. Outstanding job candidates cannot be selected if they are not included in the applicant pool. One of the major responsibilities of the HR manager in recruitment is to attract qualified people to be effective and efficient in the organization. 3.1 Recruitment on the Internet Using the internet is the fastest, simplest and most convenient or most cost-effective way to reach qualified candidates. Responses occur instantly and the results are measurable. Different recruitment sites can provide you with statistics such as how many people looked at your job posting, how many people submitted their resumes, as well as where your job ranked with other organizations recruiting for the same position. Jobseekers have always wanted detailed job descriptions. They want to know what the job entails, the qualifications for the job that are more important and what you can offer them as an organization. Recruitment sites can provide job seekers with detailed information on the qualifications you are looking for in a candidate. You can even create a customized response form to help filter your applicants further. Picking Employment Sites Job-Hunt.Org can be a big help to recruiters. Considering there are literally thousands of Web employment sites having information overload, as employer, where should you post your jobs? Job-Hunt.Org provides a list of employment sites with different categories. a. Job Sites by location – job sites with geographical focus to help you find an appropriate local resources for your posting. b. Employment Super Sites – sites that provide visibility in all kinds of media. c. Specialty Employment Sites- sites that provide category listings depending on the vacant position. 3.2 Tips to Applicants to Avoid Illegal Recruitment 1. Do not apply at recruitment agencies not licensed by POEA or the Philippines Overseas Employment Administration. 2. Do not deal with licensed agencies without job orders. 3. Do not deal with any person who is not an authorized representative of a licensed agency. 4. Do not transact business outside the registered address of the agency. If recruitment is conducted in the province, check if the agency has a provincial recruitment authority. 5. Do not pay more than the allowed placement fee. It should be equivalent to one- month salary, exclusive of documentation and processing costs. 6. Do not pay any placement fee unless you have a valid employment contract and an official receipt. 7. Do not be enticed by ads or brochures requiring you to reply to a post office (P.O.) box, and to enclose payment for processing of papers. 8. Do not deal with training centers and travel agencies, which promise overseas 9. Do not accept a tourist visa. 10. Do not deal with fixers. 3.3 Recruitment Process/Recruitment Plan This plan is an effort to quickly fill the HR request with an individual who first satisfies the job specifications. 1. Formulating a recruiting strategy This is a choice between internal and external recruiting strategy. Comparison of Promotion from Within (Internal Hiring) versus External Hiring Promotion from Within Advantages Disadvantages Provides greater motivation for Promotes inbreeding (narrowing of good performance thinking and stale ideas Provides greater promotion Creates political in-fighting and opportunities for present pressures to compete employees Improves morale and Requires a strong management organizational loyalty development program Enables employee to perform the Creates a homogeneous workforce new job with little loss of time Familiar with the organization on how it operates External Hiring Advantages Disadvantages Provides new ideas and new Loss of time due to adjustment insights Allows employees to make changes Destroys incentive of present without having to please employees to strive for promotions constituent groups No information is available if the Does not change the present applicant can blend with the rest of the organizational hierarchy group. 2. Searching for job applicants The applicant search may involve traditional recruiting methods or using e- recruitment. 3. Screening Applicants - Applicants should be screened to eliminate individuals who are obviously unqualified. 4. Maintaining an applicant pool - Applicant pool consists of individuals who have expressed an interest in pursuing a job opening and who might be feasible candidates for the position. 3.4 Sources of Applicants and Writing a Resume Sources A. Internal Sources – Companies use job posting and job bidding to inform employees of job vacancies. For companies using IT, they have portals which are accessible to all employees. Although the use of portals may not be applicable for small organizations, one must always take note that to fill an opening, it is better to look at the current employees first. B. Referrals – present employees are asked to encourage friends and relatives to apply. This is the most often used recruiting tool in small organizations. C. External Sources 1. Job advertisement – placement of help-wanted advertisements in newspapers, trade and professional publications, or on radio and television. 2. Employment centers or agencies – agencies that charge a fee for each applicant they place. 3. Campus recruitment – a primary source for entry-level job candidates. This is usually coordinated with the university or college placement center. 4. Internships – for students with practicum or on-the-job training, this can help them in honing their business skills, check out potential employers, and learn more about their likes and dislikes when it comes to choosing a career. For employers, they can use their interns to make useful contribution while they are being evaluated as possible full-time employees. 5. Job fairs/special events recruiting – joining or sponsoring employment fairs. 6. Online recruitment/e-recruitment Alternatives to Recruiting 1. Subcontracting/outsourcing – subcontract work to another organization wherein the organization loses some of its control over work that is outsourced. The company takes full responsibility for performing that function rather than just supplying the personnel. 2. Overtime – used to avoid the incremental costs of recruiting and hiring additional employees for a short period of time. 3. Temporary Help - when the company is downsizing, temporary employees create a flexible staff that can be laid off easily and recalled when necessary. 4. Employee Leasing – like temporary help agency, but employees are not temporary. Leasing companies issue the workers’ paychecks, take care of personnel matters, ensure compliance with workplace regulations, and provide the required employee benefits. Writing a Resume A curriculum vitae is a document that describes your qualifications, including but not limited to your profile, goals, skills, education, and professional experience. An employer mostly sees a preview of how you can contribute to their company. A brief resume gives your employer what you can offer them if they hire you. For employers, the resume is a screening device. So, you must get their attention and show them that your resume is worth a second look. Resume writing is a critical task. People are always confused about resume writing. They don’t know what to write and what not to write in a resume. You need to use words that would highlight what you do best since your resume is the first step in “marketing” yourself to your prospective employer. In terms of style and format, keep in mind the position and the company where you are applying. Different Parts of Your Resume 1. Name, Address, and Telephone Number – these should be on top for companies to remember your name. If possible, use a font size larger than what is used on the rest of your resume. Example: DR. CHRISTINE REYES CORPUZ Perez St. Kidapawan City 09569899901 [email protected] 2. Job Objective – it informs the employer if there is a match between the job vacancy and what you can offer. If you can offer what the employer is looking for, he/she will read on. Example: Seek a position as an HR manager using my PhD in HRM and proven track record in human resource management in both industry and the academe. Seek a position as an advertising sales representative using my academic background, proven sales skills, and retail experience. 3. Education – List your educational experience in reverse chronological order. Include a high GPA and any honors and awards received. List the key courses relevant to the job you are seeking. Example: University of Santo Tomas PhD in HRM GPA : 1.25 MS in HRM GPA: 1.5 Coursework: Compensation and Benefits Administration, Training and Development, Performance Appraisal, Labor Relation, Career Development, Management Research, Cooperative Management Honors and Awards Received: Magna Cum Laude (PhD HRM, UST) College and Deans List Scholar (UP Baguio) Regional Finalist, Metrobank Outstanding Teacher CHIMES Awardee, De La Salle University-Dasmarinas 4. Skills – Employers want to know what skills you have. Highlight the main skills required of the position you are seeking. By doing so, you are increasing your chances of creating a match in the employer’s mind. Use STAR – Situation, Technique, Action, Results – as a guide and template. Positive results create positive reactions. If you can quantify your results, you are talking in a language employers understand. Example: Prepared the Personnel Policy Manual of Caffmaco and the Personnel Policy Manual for Silang Municipal Employees. Prepared a textbook in Human Resource Management (1st, 2nd and 3rd edition) and the Human Resource Manual for Cooperatives. Organizational Ability: Actively involved in arranging and initiating leadership and research conferences; responsibilities include massive information campaign to ensure maximum attendance, preparing and coordinating the different activities involved. 5. Work Experience – List in reverse chronological order. Play up your work if it is career-related or requires skills you want to emphasis. Whenever possible, use job descriptions that are result-oriented. Example: Employment Background: Caffmaco Inc. Personnel Officer Duties: Prepared the personnel policy manual Updated the company’s job description Initiated training programs to enhance the skills of the employees Revised and updated the performance appraisal methods and the Salary scale by means of conducting wage and salary survey. 6. Communication Skills Example: Reinforced and interpreted company procedures and policies to newly hired employees during orientation. 7. References – Choose them carefully. The trend is not to include the references on the resume. It is better to use every precious inch of space to promote yourself. Initially, you can just place there that references are available upon request. 3.5 Selection Process and Its Importance Job analysis, human resource planning, recruitment are necessary prerequisites to the selection process. The selection process begins when recruiting programs have developed several applicants for available job openings. Before the selection process begins, a profile of characteristics required for successful performance should be developed for the job specification. These include the technical, interpersonal, and personal requirements of the job. Why Selection Process is Important? 1. Performance always depends in part on employees. Those who do not have the right skills will not perform effectively and the overall performance in turn will suffer. The time to screen out undesirable performers is before they become part of the organization, not after. 2. It is costly to recruit and hire employees. 3. Company objectives are better achieved by workers who have been properly selected based on their qualifications. 4. An incompetent worker is a liability to the company causing direct losses in terms of substandard performance and low productivity, and sometimes a potential source of problems to management, his/her coworkers, and customers. 5. Applicants have varying degree of intelligence, aptitudes, and abilities. 6. Labor laws protect employees making it difficult to terminate or dismiss an incompetent employee. Selection Process 1. Define the job before hiring an employee. This is where job analysis will come in handy. This will help you prepare the job description and job specifications which in turn will define the recruitment strategy. 2. Review application form and credentials carefully. This provides basic employment information that can be used to screen out unqualified applicants. Screen all applicants against a list of qualifications, skills, experience, and characteristics required by the job. Take note of the following information during your review of application form: a. Employment gaps. These gaps include dates of employment listed only in years so that the actual day and moth of employment ending are masked. b. Spelling, grammar, and punctuation. Attention to details such as appropriate grammar, spelling, and punctuation do set a candidate above the pack. Failure to shine in these details on their resume and application should be noted by the employer. c. Evidence that a career has gone backwards or plateaued. In a career that is progressing successfully, an applicant’s resume should show evidence that job titles and job description have improved as the year progresses. d. Failure to follow directions. Failure to follow directions is not just a waste of time but it can be harmful especially to job applicants because the employer might think the applicant does not have the ability to work in an organized and effective manner. e. Failing to include a cover letter. Submitting a high-quality cover letter with your resume can spell the difference. Failing to include one would entail to demonstrate how you stand out from the rest of the applicants. 3. Employment interview. This provides the hiring supervisor the opportunity to review candidates’ qualifications and determine their suitability for the position. It also provides candidates with the chance to learn about the position and its requirements and present information on their skills and experience. Preparation for the Interview Supervisors and other personnel in the departments who are involved in the interview should prepare in advance for the interview by: developing a list of core questions which will be asked of all candidates interviewed; reviewing the requirements for the position and comparing them with the applications and resumes of candidates; and taking note of areas in the person’s job history where clarification is needed. Interview Format The interview format should be the same for all candidates. The same basic questions relating to the job should be asked. Candidates should be allowed to see the workplace if that is relevant. The essential functions and other requirements for the position should be described to each candidate, candidates should be asked if they can perform those functions. If possible, all candidates should be interviewed by the same people. 4. Employment testing. Employers often use tests and other selection procedures to screen applicants for hiring and employees for promotion. There are many different types of tests and selection procedures, including cognitive tests, personality tests, medical examinations, credit checks, and criminal background checks. The use of tests and other selection procedures are very effective means of determining which applicants or employees are most qualified for a particular job. Cognitive tests assess reasoning, memory, perceptual speed and accuracy, and skills in arithmetic and reading comprehension, as well as knowledge of a particular function or job. Physical ability tests/test of motor and physical abilities measure the physical ability to perform a particular task or the strength of specific muscle groups, as well as strength and stamina in general. Sample job tasks (e.g., performance tests, simulations, work samples, and realistic previews) assess performance and aptitude or tasks. Medical inquiries and physical examinations, including psychological tests, assess physical or mental health. Personality tests and integrity tests assess the degree to which a person has certain traits or dispositions (e.g., dependability, cooperativeness, safety) or aim to predict the likelihood that a person will engage in certain conduct (e.g., theft, absenteeism). English proficiency tests determine English fluency. 5. Background investigation/reference checking. This is done to verify the accuracy of information previously provided by the applicant to uncover damaging background information such as criminal records and violent behavior. More employers get this information from the following: a. Personal references b. School records c. Previous employment records The verification of the information provided by the applicant is important because in some cases, information supplied on the application form may be false or misleading. 6. Final interview 7. Selection decision 8. Physical examination. It determines if the applicant qualifies for the physical requirements of the position and to discover any medical limitations that should be considered in placing the applicant. 9. Final employment decision/placement on the job. This is the decision to accept or reject the applicant based on the results of the physical examination and a value judgment based on all the information gathered in the previous steps. Chapter 4 – Training and Development of Employees Intended Learning Outcomes: At the end of this chapter, the students must be able to: 1. Discuss the employee orientation 2. Explain training and its uses to deal with competitive challenges 3. Describe the training process, options and outsourcing of the training o employees and training methods 4.1 Employee Orientation Employees today receive their first training during their first day on the job. This is the orientation of employees for them to become familiar with assigned tasks, the organization’s practices, policies, and procedures. This is the procedure for providing new employees with some basic background information about the firm, its culture, and the job. It is like what sociologists refer to as socialization. Socialization is a process when a new employee learns the norms, values, goals, work procedures, and patterns of behavior that are expected by the organization. The initial period in an organization is also a critical point in determining whether a new employee will become a high performer or simply perform at a minimum or mediocre level. Orientation should be conducted at two levels regardless of the type of organization: 1. Organizational/overview orientation – topics discussed include overview of the company, key policies and procedures, compensation, benefits, safety and accident prevention, employees and union relation if there is any, physical facilities, and the like. 2. Departmental and job orientation – topics about the department function and the duties and responsibilities of the newly hired employee, policies, procedures, rules and regulations, tour of the department, and introduction to department employees. The HR department and the new employee’s immediate supervisor normally share the responsibility for the orientation. 4.2 Training Definition and Its Uses to Deal with Competitive Challenges Training is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviors to enhance the performance of employees. Objectives of Training and Development 1. Improve productivity and the quality and quantity of output. This can lead to an increase in an individual’s skills in one or more areas of expertise. 2. Effectiveness in the present job. This involves increasing an individual’s motivation to perform his/her job well. 3. Create more favorable attitudes such as loyalty and cooperation. 4. Help employees in their personal development and advancement by helping them acquire additional qualifications for a better job. 5. Help organization respond to dynamic market conditions and changing customer demands. 6. Satisfy human resource planning requirements. Using Training to Deal with Competitive Challenges 1. Global challenge – in the advent of a borderless society, cross-cultural training is important to prepare employees and their families for possible overseas assignments. 2. Quality challenge – the emphasis on quality is seen in the establishment of the Malcolm Baldrige Quality Award and the ISO quality standards. As a result of these, the quality challenge has forced employers to train their employees to create high-quality products and services. 3. High performance work system challenge – new technology causes changes in skill requirements and work roles, and often results in redesigning work structures. Through new technology, the information needed to improve customer service and product quality becomes more accessible to employees. Employees need job-specific knowledge and basic skills to work with the equipment created with the new technology. Because technology is often used to achieve product diversification and customization, employees must have the ability to listen and communicate with customers. 4.3 The Training Process, Options and Outsourcing of the Training of Employees and Training Methods 4.3.1 The Training Process 1. Training Needs Analysis/Needs Assessment This refers to the process used to determine if training is necessary. It identifies specific job performance deficiencies and increases productivity. Training is needed when significant differences exist between actual performance and prescribed standards. It refers to a systematic, objective identification of training needs. Consulting the supervisor can determine areas of need, revealed through performance appraisal, as well as the manager’s concerns for specific training needs to improve bottom-line performance which can lead to an increase in employee efficiency. Five Methods Used to Gather Needs Assessment Information a. Interviews – can be used to take note of the problem of the employee in relation to the job, additional skills or knowledge the employee needs to better perform the job, and what training the employee believes is needed. b. Survey questionnaire – involves developing a list of skills required to perform jobs effectively and asking employees to check skills in which they believe they need training on. c. Observation – specialists in the HR department who have been trained to conduct job analysis are usually adept at observing to identify training needs. d. Focus groups – employees from various departments who conduct focus group sessions to determine skills and knowledge needed by employees for the organization to stay competitive and identify problems of the organization that can be solved by training. e. Documentation examination – this involves examining records like absenteeism, turnover, accident rates, and performance appraisal information to determine if problem exists and whether any problems identified can be addressed through training. Regardless of the methodology employed, a systematic and accurate need assessment should be undertaken before any training is conducted. Needs Assessment Process a. Organizational analysis – involves determining the appropriateness of training, given the company’s business strategy, its resources available for training, and support by managers and peers for training activities. b. Person/performance analysis – determining the training needs of current employees. This means verifying that there is a significant performance deficiency and whether that deficiency should be rectified through training. It involves determining whether performance deficiencies result from lack of knowledge, skill, ability, or from a motivational or work design problem. It also involves identifying who needs training and determining employees’ readiness for training. c. Task analysis – assessing training needs of new employees. This is a detailed study of the job to determine what specific skills are required. It includes identifying the important tasks and knowledge, skills, and behaviors that need to be emphasized in training for employees to develop the skills and knowledge required for effective performance and for the employees to complete their tasks. 2. Designing the Training Programs/Training Objectives After determining training needs, objectives must be established to meet those needs. Effective training objectives should state the benefit to the different stakeholders in the organization. The outcome of the training or learning objectives can be categorized as follows: a. Instructional objectives – what principles, facts, and concepts should be learned in the training program taking into consideration the positions of the participants? b. Organizational and departmental objectives – what impact will the training have on organizational and departmental outcomes such as absenteeism, turnover, reduced costs, improved productivity, accident rate and the like? c. Individual and growth objectives – what impact will the training have on the behavioral and attitudinal outcomes of the individual trainee and on the personal growth of the trainee? Training objectives: focus specifically on needs help in increasing the probability that the participants will be successful in training an important tool to judge the performance of participants Training Design The design of the training program can be undertaken only when a clear training objective has been produced. The training objective clarifies what goal must be achieved by the end of the training program, i.e., what the trainees are expected to do at the end of their training. Training objectives assist trainers to design the training program. A good training design requires scrutiny of the trainees and their profiles. Age, experience, needs, and expectations of the trainees are some of the important factors that affect the training design. 3. Validation. Introduce and validate the training before a representative audience. Base final revisions on pilot results to ensure training effectiveness. When clearly defined objectives are lacking, it is impossible to evaluate a training program efficiently. 4. Implementation of the Training Program. The training is implemented once the staff, course, content, equipment, and topics are ready. Completing the training design does not mean that the work is done because implementation phase requires continual adjusting, redesigning, and refining. Preparation is the most important factor to guarantee success. Therefore, the following are factors that should be kept in mind while implementing a training program: a. The trainer – needs to be prepared mentally before the delivery of content. The trainer prepares materials and activities well in advance. The trainer also set grounds before meeting with participants by making sure that he/she is comfortable with course content and is flexible in his/her approach. b. Physical setup – good physical setup is a prerequisite for effective and successful training program because it makes the first impression on participants. A right amount of space should be allocated to every participant. c. Establishing rapport with participants – a trainer can establish good rapport with trainees by: Greeting participants which is the simplest way to ease those initial tense moments; encouraging informal conversation; remembering their first names; pairing up the learners and have them get familiarized with one another; listening carefully to trainees’ comments and opinions; telling the learners by what name the trainer wants to be addressed; getting to class before the arrival of learners; starting the class promptly at the scheduled time; using familiar examples; varying the instructional techniques; and using the alternate approach if one seems to bog down. d. Reviewing the agenda – at the beginning of the program, it is very important to review the program objective. The trainer must tell the participants the goal of the program, what is expected of the trainers, the flow of the program, and how the program will run. The following information needs to be included: Kinds of training activities Schedule Setting group norms Housekeeping arrangements Flow of the program Handling problematic situations 5. Training Evaluation This will help check whether training has had the desired effect. Training evaluation ensures that candidates can implement their learning in their respective workplaces, or to the regular work routines. Purposes of Training Evaluation a. Feedback. Giving feedback helps the candidates define the objectives and link them to learning outcomes. b. Research. It helps in ascertaining the relationship between acquired knowledge, transfer of knowledge at the workplace, and training. Process of Training Evaluation Before the Training The learner’s skills and knowledge are assessed before the training because this can help determine whether the actual outcomes are aligned with the expected outcomes of training. During the Training This is the phase at which instruction is started. This usually consists of short tests at regular intervals. After the Training This phase is designed to determine whether training given had the desired effect at individual departments and organizational levels. Observation, questionnaire, and interview are some of the techniques used for evaluation. 4.3.2 Training Options There are 4 training options that an organization can consider before providing training to their employees: 1. Outsourcing: this allows organizations to concentrate on their core business. One approach is to tie up with some reputed training or educational institutes and send employees for training. This way, a company gets to avail the required expertise and high- quality training programs and saves money on content development, recruiting, and maintaining training team. The only issue in outsourcing training is that the quality of training must be frequently tracked to ensure the trainer’s performance and training effectiveness. 2. Internal Training: This alternative is generally for the new employees who are given the fundamental or job-related training in-house and then send outside for higher training. 3. Product-related Training: The dealer who delivers the apparatus or installs the system offers the initial training. The user may negotiate with the dealer for regular updates and upgrades of product-related know-how or expertise in place of a one-time training. 4. Independent Professionals: The responsibility of training is entirely on the individual and a better-trained professional will always have better market worth than others. Professionals need to keep themselves updated of the developments. 4.3.3. Outsourcing the Training of Employees Organizations go for outsourcing to save training costs, gain access to practical and technical proficiency, concentrate on core competencies, and offer and overall enhanced training to their employees. Outsourcing allows companies to deliver the best training to their employees so they can get the clients to the best of their abilities. With the rapid globalization, increase in competition, technological innovation, increase in access to information, and improved customer services, the customer loyalty program have become and integral part of organizations. Outsourcing is a competent tool that ensures and offers convincing return on investment (ROI). Outsourcing subtracts the risk in setting up a complicated function that is not a core competency. Outsourcing leads to customer retention, customer loyalty, customer satisfaction, and greater efficiencies on the part of employees. 4.3.4 Training Methods There are various methods of training, which can be divided into cognitive and behavioral methods. Trainers need to understand the pros and cons of each method and its impact on trainees keeping their background and skills in mind before giving the training. A. Cognitive methods dwell on giving theoretical training to the trainees. The various methods under cognitive approach provide the rules on how to do specific tasks such as written or verbal information and demonstrate relationships among concepts. These methods are associated with changes in knowledge and attitude by simulating learning. The various methods that come under cognitive approach are: 1. Lecture/Discussion Approach It involves transmitting large amount of information to many people at a given time. It is the traditional method of teaching, and it is used in many training programs. It is primarily one way – from the trainer to the audience. A good lecture consists of introduction of the topic, purpose of the lecture, and priorities and preferences or the order in which the topic will be covered. 2. Demonstrations/Hands-on Method This requires the trainee to be actively in learning. This is ideal for developing specific skills, understanding how skills can be transferred to the job, and experiencing all aspects of completing a task. This method is a visual display of how something works or how to do something. As an example, a trainer shows the trainees how to perform or how to do the tasks of the job. In order to be more effective, demonstration method should be accompanied by discussion or lecture method. 3. Computer-based Training (CBT) This is an interactive training experience in which the computer provides the learning stimulus where the trainee must respond. The computer analyzes the responses and provides feedback to the trainee. CBT was one of the first new technologies to be used in training. 4. Virtual Reality – is a training method that puts the participant in a 3-D environment. The three-dimensional environment simulates situation and events that are experienced in the job. This type of environment is created to give the trainee an impression of physical involvement in an environment. To experience virtual reality, the trainee uses devices like headset, gloves, and treadmills. One advantage of virtual reality is that it allows the trainee to practice dangerous tasks without putting himself/herself or others in danger. The virtual reality environment can be identical to the actual work environment. B. Behavioral methods are more of giving practical training to the trainees. These methods are best used for skills development. The various methods that come under behavioral approach are: 1. Games and Simulations – this method stimulates learning because participants are actively involved, and they mimic the competitive nature of business. The decisions that participants make in games include all aspects of management practice: labor relations (agreement in contract negotiation), marketing (the price to charge for a new product), and finance (financing the purchase of new technology). A training game is defined as an activity or exercise in which trainees compete according to the defined set of rules. Simulation is creating computer versions of real- life games. It is about imitating or making judgment or opining how events might occur in a real situation. 2. Case Studies and Role Playing – in this type of training, participants assume specific characterizations and act out a particular situation or problem. Rather than simply talking about what the solution should be, the participants attempt to solve the situation as if they were the real individuals involved. This is an effective training technique for reducing role conflict between a supervisor and a union steward. A good training activity can have them reverse roles and allow them to resolve their differences. 3. On-the-Job Training (OJT) – involves having a person learn a job by performing it. The employee is shown how to perform the job and is allowed to do it under the trainer’s supervision. Although OJT is simpler and less costly, if it is not handled properly, the costs can be high in terms of possible damage to machinery, unsatisfied customers, misfiled forms, and poorly taught workers. It is then a must to carefully select and train the trainer to use the most effective technique. Advantages of OJT a. No special space or equipment required b. Provides immediate transfer of training c. Allows employee to practice what they are expected to do after the training ends Chapter 5 - Performance Review and Appraisal Intended Learning Outcomes: At the end of this chapter, the students must be able to: 1. Discuss on how to measure performance and the approaches and objectives of performance appraisal. 2. Differentiate performance criteria and evaluation of performance. 3. Compare and contrast performance appraisal methods, problems, and solutions. One of the most important activities of an HR manager is maintaining and enhancing the workforce. With all the efforts and costs that recruiting and selectin entail, it is important to develop employees for them to use their fullest capabilities, thus, improving the effectiveness of the organization. Performance review is the ongoing process of evaluating and improving employees’ performance. It is a process by which an individual’s work performance is assessed and evaluated. It answers the question, "How well has the employee performed during the period in question? It also entails determining and communicating to an employee how he/she is performing on the job and ideally, establishing a plan of improvement. Performance is often confused with the effort that refers to energy expended. 5.1 Measure Performance and Approaches/Objectives of Performance Appraisal Performance is measured in terms of result. Performance may be defined then as the accomplishment of an employee or manager's assigned duties and outcomes produced on a specified job function or activity during a specified period. Performance review or evaluation, on the other hand, refers to a systematic description and review of an individual’s job performance. The major contribution of performance management is its focus on achieving result-useful products and services for customers inside and outside the organization. Performance management redirects efforts away from business toward effectiveness. It is an HRM activity where the individual worker's efficiency is observed and appraised during a given period based on a systematic uniform performance standard helps. It helps in identifying, collecting, sharing, and using information about the performance of people at work. Performance management is an ongoing communication process, undertaken in partnership between an employee and his/her immediate supervisor. The primary goal of performance management is to improve organization. But one must take note that performance appraisal is not performance management. Evaluating performance is just one part of performance management system. 5.1.1a Why Measure Performance 1. Managers cannot manage and define what is expected and gives feedback and recognition without defining the basis or performance measures. It allows management to specify what must be done and to combine feedback with goal setting. 2. On the part of the employee, he/she cannot improve on what he/she is supposed to do without the necessary data before and after to see if performance is improving. 3. Creating high performance requires a definition of clear goals so you will know it when you see it. In addition, all high performers get there because they have a clear picture of where they are going. 4. Pay for performance requires metrics. If the organization will be giving pay based on performance, there is a need to have some way of knowing when the payout has been earned. 5.1.1b 1. Focusing on the employees' past performance – this is more on management of results. 2. Focusing on the employees' development – In here, results become the driving force for management development. These two approaches are not without difficulties that is why modern approaches to performance review takes a much more strategic posture to link personal development with organizational development and continuous improvement measures. 5.1.1c Objectives of Performance Appraisal 1. It provides information upon which promotion, transfer, demotion, layoff, discharge, and salary decisions can be made. It could justify reward decisions including merit increases, promotions, and other forms of rewards. 2. It provides an opportunity for the supervisor and his/her subordinates to review and identify their strengths and weaknesses or work-related behavior. This in turn allows both to develop a plan for correcting any deficiencies that the appraisal might have unearthed or reinforce the things the subordinate does right. This feedback clarifies for employees the job expectations held by their supervisor. 3. It forms the basis in identifying the training needs of employees as well as evaluating the success of training, thus, development initiatives are not based on opinions but rather on results. 4. It helps in the firm's career planning process because it provides a good opportunity to review the person's career plans considering his/her exhibited strengths and weaknesses. Thus, it could produce evidence and/or opportunity for career progression. 5. It allows easy monitoring and supervision. 6. It helps evaluate the individual’s share relative to the team's contribution in achieving the organization's goal. 7. It provides information to evaluate effectiveness of selection and placement decisions. 5.2 Performance Criteria and Evaluation of Performance 5.2.1a Performance Criteria Deciding what to evaluate reflects the personal values of the individuals who design the evaluation system. Most people agree that quality and quantity of performance are important dimensions to evaluate but there is less agreement about traits such as appearance, initiative, enthusiasm, and the like. Three criteria are suggested here to be included in the construction of performance evaluation: 1. Relevance – relevant performance dimensions are determined by the duties and responsibilities contained in the job description. 2. Reliability – produced consistent and repeatable evaluation. 3. Freedom from contamination – should measure each employee's performance without being contaminated by factors that an employee cannot control such as economic conditions, material shortage, or poor equipment. 5.2.1b Evaluation of Performance Indicators or Matrix that Can Help Measure Employee Performance According to Hakala (2008), a manager or supervisor can use the following indicators of performance to appraise subordinates. 1. Quantity: The number of units produced, processed, or sold is good objective indicator of performance. 2. Quality: The percentage of work output that must be redone or is rejected is one indicator of quality. In a sales environment, the percentage of inquiries converted to sales is an indicator of salesmanship quality. 3. Timeliness: How fast work is performed; it might be the number of units produced per hour. 4. Cost-effectiveness: The out of work performed should be used as a measure of performance only if the employee some degree of control over costs. 5. Absenteeism/Tardiness: An employee is obviously not performing when he or she is not at work. 6. Creativity: Supervisors and employees should keep track of creative work examples and attempt to quantify them. 7. Adherence to Policy: This may seem to be the opposite of creativity, but it is merely a boundary on creativity. Deviations from policy indicate an employee whose performance goals are not well aligned with those of the company. 8. Gossiping and other Personal Habits: They may not seem performance-related to the employee, but some personal habits, like gossiping or rumor mongering can disrupt job performance and interfere with the performance of others. The specific behaviors should be defined, and goals should be set for reducing their frequency. 9. Personal Appearance Grooming: Most people know how to dress for work, but in many organizations, there is at least one employee who needs to be told. Examples of inappropriate appearance and grooming should be spelled out, their affects upon the employee's performance and that of other explained, and corrective actions defined. 5.3 Performance Appraisal Methods, Problems, and Solutions 5.3.1a Performance Appraisal Methods 1. Ranking Method – ranking the employee from the most efficient to the least capable on each trait or quality to be used in judging the employees’ performance just simply ranking the employee from the best to worst. This can be very difficult to do if the supervisor is asked to rank many subordinates and many traits are involved. Ranking system has also the potential to cause unwanted side effects. Because ranking method compares colleagues in a very real sense, it pushes people to compete. It can encourage people to work harder to come out on top, but it can also encourage people to passively interfere with the work of others. 2. Paired comparison method – consists of asking an evaluator to consider only two individuals art one time and to decide who is better. Then another pair of names is presented to the evaluator for another evaluation. An employee’s position in the final ranking is determined by the number of times that employee is chosen over the other employees. 3. Forced distribution – forced ranking is a method of performance appraisal that ranks employees through forced distribution. The rater is asked to rate employees in some fixed distribution categories such as superior, above average, average, below average, and poor. It assumes that the relative percentages would be approximately 10%, 20%, 40%, 20%, and 10% respectively. This system is based on social science statistics of the normal curve, which presents a bell-shaped graph where one end of the scale represents the best job performance, and the other ends represents the worst performance. The top-ranked employees are considered “high potential” employees and often targeted for a more rapid career and leadership development programs. In contrast, those ranked at the bottom are denied of bonuses and pay increases. They may be given a probationary period to improve their performance. Individual Evaluation Methods 1. Critical Incident Method The critical for performance appraisal is a method in which the manager writes down positive and negative performance behavior of employees throughout the performance period. This requires recording of events that represent either effective or ineffective performance for each employee being rated. An incident is critical when it illustrates what the employee has done or failed to do. At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers’ performance. Recorded incidents can help avoid many common rating errors and help facilitate discussions about how an employee’s performance can be improved. Its main drawback is that the rater is required to jot down incidents regularly which can be burdensome and time consuming. To add, there is danger that negative incidents may be more noticeable than positive incidents. 2. Checklist and Weighted Checklist Method Checklist is a set of objectives or descriptive statements. This method describes a performance appraisal method where the rater, familiar with the jobs being evaluated, prepares a large list of descriptive statements about effective and ineffective behavior on jobs. The employee’s evaluation is the sum of the scores (weights) on the items checked. 3. Graphic Rating Scales This is the oldest and most widely used method for performance appraisal. The scales may specify five points, so a factor as job knowledge might be rated from 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job). Rating Identification O – Outstanding Performance is exceptional in all areas and is recognizable as being far superior to others. (100-90) V – Very Good Results clearly exceed most position requirements. Performance is of high quality and is achieved on a consistent basis. (89-80) G – Good Competent and dependable level of performance. Meets performance standards of the job. (79-70) I – Improvement Needed Performance is deficient in certain areas. Improvement is necessary. (69-60) U – Unsatisfactory Results are generally unacceptable and require immediate improvement. (Below 60) This method permits commenting on the employee’s unique characteristics. It is more effective when specific examples of employee behavior are cited, along with objective facts supported by any quantitative information. 4. Behaviorally Anchored Rating Scales (BARS) This method is used to describe a performance rating that is focused on specific behaviors or sets as indicators of effective or ineffective performance. It is a combination of the rating scale and critical incident techniques of employee performance evaluation. This method evaluates observable behavior rather than subjective perceptions, but it requires a lot of time and effort to develop the scales. It is designed to assess specific behavior to successfully perform a job. 5. Management by Objective (MBO) MBO is a process in which managers and their subordinates’ set objectives for the employee to achieve within a specific rating period. MBO focuses attention on what must be accomplished (goals) rather than how it is accomplished (methods). Reward is given based on the result or output. MBO allows easy linking of individual objectives to work unit objectives. It reduces likelihood of disagreement during appraisal meetings if standards and targets were written well during the performance planning process and considering employees were involved in the preparation and identification of targeted outcomes. For MBO to be effective, it must be SMART – the objective must be specific, measurable, attainable, results-oriented, and time-bound. 6. Multi-rater Assessment or the 360-degree Performance Feedback The 360-degree feedback is a system or process in which employees received confidential, anonymous feedback from people who work around them, their immediate superior, peers, customers, or suppliers. Traditionally, companies evaluate employee performance by relying almost exclusively on the supervisor’s ratings. The strength of this method lies on the fact that more people are involved in the evaluation instead of just relying on the supervisor, hence, bias is prevented. 5.3.1b Performance Appraisal Problems and Solutions 1. Halo Effect The Problem: A manager or supervisor allows a general favorable impression of an employee to influence his or her judgment on each separate factor in the performance appraisal process. An unfriendly employee will often be rated unsatisfactory for all traits rather than just for the trait pertaining to interpersonal relation. The Solution: The rater should consider each factor independently of all other factors, rather than rating the employee at the same level on all (or most) factors in an appraisal. Being aware of this problem is a major step toward avoiding it. 2. Recency Effect The Problem: Recent events tend to have an unusually strong influence on performance evaluation. Outstanding contribution or untimely mistake just prior to a performance review colors the manager's perception of the employee's performance for the entire appraisal period. (A similar pitfall, the unforgettable effect, occurs when an employee does something so extraordinary, either positively or negatively, that its impressions last for a long time, to the advantage or disadvantage of the employee). The Solution: An alert manager compensates for lack of perspective by careful documentation and to make refinements in the design of the appraisal method, as well as improving the skills of the raters. 3. Previous Performance Bias The Problem: The employee who has performed well in the distant past in assumed to be acceptable in the recent past also. Previous good work tends to carry over into the new period being appraised. The Solution: Once again, observation and documentation of the employee’s performance will give an accurate account of the performance period under scrutiny. 4. Leniency/Harshness/Strictness Error The Problem: Some managers tend to give mostly favorable ratings while others tend to evaluate the same performance levels unfavorably. This error is usually committed when managers feel uncomfortable about communicating negative feedback or do not want to hurt the employee's feelings. The Solution: Understanding the constructive purposes of performance appraisal and acquiring effective skills in giving negative feedback should reduce the tendency to commit this error. Raters can assess their own harsh and lenient rating tendencies by examining or distributing ratings forcing a normal distribution to avoid this error. 5. Central Tendency The Problem: Central tendency occurs when a manager rates all employees as average by choosing the middle rating. The central tendency closes the door to an employee's growth and improvement on a job because no strengths or weaknesses are identified. The Solution: Ranking employees can avoid this error because all employees must be ranked and, thus, cannot all be rated average. 6. Carelessness: The Problem: Managers make quick guesses based on first impressions of an employee's performance. The Solution: Managers commit significant time observing staff members and forming judgments based on their observations. Major decisions are often based on performance rating, and ill-considered ratings will contribute unreliable information and detract from the organization's goals. 7. Bias The Problem: Individual differences among ratees in terms of characteristics like age, race, sex, and religious and political affiliations. Evaluations are dependent on the rater's personal preferences, prejudices, and biases. The rater who has a biased or prejudiced attitude toward certain groups of people looks for behavior in these groups that confirms his or her prejudices. The Solution: When rating employees, the manager must consider the same relevant behaviors for all employees supervised. Individual differences and other nonperformance factors should not affect performance appraisal ratings. Careful observation, description, and documentation of actual performance on an ongoing basis reduce the tendency for bias by emphasizing job performance over a period. Chapter 6 – Changes in Personnel Status Intended Learning Outcomes: At the end of this chapter, the students are expected to: 1. differentiate the changes in employment status; 2. discuss the governing laws regarding separation from service; and 3. compare and contrast the types of employment. Changes in employment status are bound to take place during the period of employment. There is a continuous movement of employees in the form of promotion, transfer, demotion, or separation. This movement is the function of placement wherein the objective is to find or assign the right person to the right job. A change in employment status is affected by a personnel action generated by the HR department upon receipt of a written request from an authorized representative of a department expressing the intended change in employment status. 6.1 Promotion, Demotion, Transfer, and Employee Separation 6.1.1a Promotion It involves the reassignment of an employee to a higher job position. This also refers to the upward or vertical movement of employees in an organization from lower- level jobs to a higher-level job involving increases in duties and responsibilities, higher pay, and privileges. Promotion serves as an encouragement and inspiration to other employees to exert their maximum effort. This can also help instill loyalty to the firm. Approaches to Recruit Employees for Promotion 1. Closed promotion system – the responsibility of the supervisor to identify promotable employees for the job to be filled. 2. Open promotion system – also known as job posting – enhance participation and the achievement of equal opportunity goals. Criteria Used in Promoting Employees 1. Seniority – length of service a. Straight seniority – the length of service of an employee is the sole basis for determining who gets the promotion. b. Qualified seniority – the more competent employees as compared to another employee with longer service will be the one promoted. 2. Current and past performance – promotion is based on previous job performance and evaluation. “Unofficial” Promotion Criteria 1. Personal characteristics 2. Nepotism – showing of favoritism or patronage to relatives 3. Social factors/friendship Remember that when an employee accepts a job, he/she does not expect to stay in the same job throughout his/her working life. It is normal for all employees to expect promotion in exchange for a job well done. As pointed out by Herzberg’s Motivation Hygiene Theory (F. Herzberg et al., The Motivation to Work), giving recognition related to the job can create high levels of motivation. 6.1.1b Demotion This is the reassignment of an employee to a lower job involving fewer skills and responsibilities. It is also the movement of an employee to a less important job from a higher-level job in the organization. It may not involve a reduction in pay but a reduction in status or privileges. As a rule, demotion should be cautiously resorted to for it badly affects individual and group morale and productivity. The alternative to demotion should be re-training or reorientation on the job and attitude toward work, or as a last resort, termination of employment if no improvement is achieved. Reasons behind Demotion 1. Reorganization, company merger, or business reverses resulting to fewer jobs, forcing some employees to accept demotion. 2. Inability of employees to perform their job based on acceptable standards. 3. As a form of disciplinary action or a way to handle disciplinary problems, also viewed as a routine form of punishment for wrongdoing. 4. The tool used to inform the employee concerned that he or she is beginning to be a “liability” rather than an “asset” to the organization. 6.1.1c Transfer This is the reassignment of an employee to a job with similar pay, status, duties, and responsibilities or to another work shift, or from one unit to another in the same company just like being an invoice clerk to a salesclerk. The right to transfer an employee is part of management’s inherent power or prerogatives. Reasons for Transfer 1. Due to job dissatisfaction. 2. In conflict with supervisor or coworkers. 3. For employee’s convenience. 4. Organizational needs may require transfer to business expansion, retrenchment, erroneous placement, or to meet departmental requirements during peak season. 5. For an employee to be better suited or adjusted to the job (remedial transfer). 6.1.1d Employee Separation Different kinds of separation occur depending on whether the employee or the employer decides to terminate the employment relationship. Termination of employment in the Philippines Terminating an employee in the Philippines is a complex process, especially if the employee subject for termination is already a regular employee. The following are governing laws regarding separation from the service. 6.2 Governing Laws Regarding Separation from the Service 1. Art. 279. Security of tenure. In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or authorize cause and only after due process of law. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full back wages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement. 2. Art. 282. Termination by employer (Dismissal) (See Chapter about employee discipline.) An employer may terminate an employment for any of the following causes: a. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work; b. Gross and habitual neglect by the employee of his duties; c. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative; d. Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representatives; and e. Other causes analogous to the foregoing. 3. Art. 283. Closure of Establishment and Reduction of Personnel/Layoffs The employer may also terminate the employment of any employee due to the following authorized clauses: a. Installation of labor-saving devices; b. Redundancy; c. Retrenchment to prevent losses; and d. Closure or cessation of business. Factors Behind Downsizing Leading to Layoff Management as a temporary measure during periods of business recession, industrial depression, or seasonal fluctuation, resorts to layoff or downsizing. The recent trends toward downsizing leading to massive layoffs have been triggered by three factors: a. Declines or crisis in the firm – there is a decrease in the demand for the firms’ products or services due to a recession in business climate and increased international competition. b. Technological advances – enabling many companies to produce more with fewer people. c. Organization restructuring – modification of the firms’ structure to become less hierarchical by cutting out the layer of middle management. To help employees who have lost their jobs, employers can provide services such as outplacement or helping employees find a new job or providing relocation assistance and family counseling. The following are some of the alternatives to layoff: a. Freeze hiring b. Restrict overtime c. Re-train/redeploy d. Switch to job sharing e. Use unpaid vacations f. Use a shorter workweek g. Use pays reductions h. Use sabbaticals i. Implement early retirement programs Separation Pay In authorized cause terminations, separation pay is the amount given to an employee terminated due to retrenchment, closure, or cessation of business, or incurable disease. The employee is entitled to receive the equivalent of one month pay or one-half month pay, whichever is higher, for every year of service. In just cause terminations, separation pay is also the amount given to employees who have been dismissed without just cause and could no longer be reinstated. 4. Art. 284. Disease as ground for termination. An employer may terminate the services of an employee who has been found to be suffering from any disease and whose continued employment is prohibited by law or is prejudicial to his health as well as to the health of his co-employees. 5. Art. 285 Termination by employee (Resignation) The Philippine Constitution say no involuntary servitude in any form shall exist except as punishment for a crime whereof the party shall have been duly convicted. In view of the prohibition on involuntary servitude, an employee is given the right to resign under Art. 285 of the Labor Code. This provision recognizes two kinds of resignation – without cause and with cause. If the resignation is without cause, the employee is required to give a 30-day advance written notice to the employer, to enable the employer to look for a replacement to prevent work disruption. If the employee fails to give a written notice, he or she runs the risk of incurring liability for damages. An employee may terminate without just cause, the employee-employer relationship by serving a written notice (resignation letter) on the employer at least one (1) month in advance. The employer upon whom no such notice was served may hold the employee liable for damages. An employee may put an end to the relationship without serving any notice on the employer for any of the following causes: a. Serious insult by the employer or his representative on the honor and person of

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