Performance Management & Inclusion Practices PDF

Performance Management & Inclusion Practices Importance, learning objectives, and takeaways RSM - a force for positive change Purpose vs. reality Purpose Reality Strategic: Drives organisational growth and productiv...

Performance Management & Inclusion Practices Importance, learning objectives, and takeaways RSM - a force for positive change Purpose vs. reality Purpose Reality Strategic: Drives organisational growth and productivity by aligning employee actions with organisational goals. Developmental: Provides employees with information on how to develop. Administrative: Provides managers with information on how to reward, promote, and retain. Source: https://hbr.org/2016/10/the-performance-management-revolution 3 Learning objectives 1. Explain the key concepts in performance management 2. Evaluate performance measurement schemes 3. Design effective strategies to address underperformance 4. Design effective feedback conversations 5. Explain key concepts and findings for inclusive workplaces 6. Identify formal and informal strategies for fostering inclusive workplaces Source: https://hbr.org/2019/10/where-companies-go-wrong-with-learning-and-development 4 Takeaways 1. The relevance of the performance management process can be understood based on goal setting theory. 2. Accuracy and meaningfulness of performance measurement can be increased by using the critical incident method, 360- degree feedback, and competency-based assessments. 3. The reasons for underperformance can be understood based on the AMO model. To address underperformance, a 5-step process can be followed. 4. Organisations are increasingly using strengths-based and continuous feedback systems. 5 Performance management Key concepts RSM - a force for positive change Basic terms Performance management: “a process for establishing shared understanding about what is to be achieved, and an approach to managing and developing people in a way which increases the probability that it will be achieved in the short and long term” (Armstrong, 2003, p. 479). Performance appraisal: “formal process, which occurs infrequently, by which employees are evaluated by some judge (typically a supervisor) who assesses the employee’s performance along a given set of dimensions, assigns a score to that assessment, and then usually informs the employee of his or her formal rating” (DeNisi & Murphy, 2017, p. 421). Source: DeNisi & Murphy (2017). Performance appraisal and performance management: 100 years of progress? Journal of Applied Psychology, 102, 421-433. 2 Traditional performance management cycle Translate organisational goals into individuals goals Determine what will be measured to determine performance Formal performance rating Provide feedback to Discuss goal attainment and employee about areas for improvement performance Discuss incremental goal attainment Redefine goals if necessary Source: Pulakos et al. (2018). The evolution of performance management: Searching for meaning. Annual Review of Organizational Psychology and 3 Organizational Behavior, 6, 249-271. Theoretical perspective: Goal-setting theory Setting goals which are specific and challenging yet attainable can result in motivation to increase performance (Locke and Latham, 1990). Goals regulate performance as they direct the direction, intensity, and duration of motivated action (Latham and Locke, 1991). Self-efficacy and feedback can strengthen the link between goal setting and performance. Source: Locke & Latham (1991). A theory of goal setting and task performance. Academy of Management Review, 16, 212-247; 4 https://www.youtube.com/watch?v=dWOt2HyjCno. Principles of goal-setting theory Source: Locke & Latham (1991). A theory of goal setting and task performance. Academy of Management Review, 16, 212-247; 5 https://www.youtube.com/watch?v=dWOt2HyjCno. Key takeaways Performance management is an umbrella term, while performance appraisal refers to the infrequent event when employee performance is measured and discussed. The traditional performance management cycle involves goal setting, feedback, and performance appraisals. Goal setting theory explains why setting specific and challenging goals motivates employee action. 6 Inclusive Workplaces Key terms and research findings RSM - a force for positive change Diversity Diversity Differences among employees in an organization or groups Integration route Underlying characteristics: Knowledge- Conflict route related differences (job, education, experience); values; beliefs Demographic differences (sex, race or ethnicity, religion, disability status, age, LGBTQ, neurodivergency) Outcome Van Knippenberg, De Dreu, & Homan (2004) Workgroup diversity and group performance: An integrative model and research agenda. Journal of 2 Applied Psychology, 89, 1008-1022.. Inclusion ALL employees both those who have historically been powerful and underrepresented in the cultural context are Treated fairly Valued for who they are Included in core decision making Belongingness Uniqueness Source: Shore, L. M., Cleveland, J.N., & Sanchez, D. (2018). Inclusive workplaces: A review and model. Human Resource Management Revi ew, 28, 176-189. 3 Image: Creator: melitas | Credit: Getty Images/iStockphoto Motivations Doing what is right and just Showing viable career paths Ensuring business success 4 Research Evidence Key variable: Climate for inclusion: Shared perception by employees of the employer’s policies, procedures, and activities focused on creating a sense of belongingness, while valuing the uniqueness of each individual employee How is it measured: “I trust the company to treat me fairly” “The company respects views of people like me” Source: [full reference if a paper, or book reference: “Textbook, p.xxx”] 5 It helps ALL employees perform! 6130 sales employees working for commission in 743 stores in the US 4544 Whites; 771 Blacks; 659 Latino; 246 Asian; 84% female Source: McKay, Avery, & Morris, 2008. Mean racial-ethnic differences in employee sales performance. Personnel Psychology 6  It matters for firm performance 26 restaurants of a US regional restaurant chain Racial diversity: 54.7% white; 33.5% Latino; 9.6% black; Rest “other” More diversity combined with inclusive climates led to better business outcomes 7 Gonzalez & Denisi 2009. Cross-level effects of demography and diversity climate on organizational attachment and firm effectiveness. Journal of Organizational Behavior.  It matters for firm performance 26 restaurants of a US regional restaurant chain Gender diversity: 56.3% Women 43.7% Men Moderate diversity combined with inclusive climates led to better business outcomes 8 Gonzalez & Denisi 2009. Cross-level effects of demography and diversity climate on organizational attachment and firm effectiveness. Journal of Organizational Behavior. Key Takeaways Inclusion helps: Your organization’s bottom line Your employees’ careers Your image as a fair employer Diversity: differences between people in a group Inclusion: appreciation and valuation of those differences 9 Inclusive Workplaces Inclusive Strategies RSM - a force for positive change From diversity to inclusion Climate of inclusion: Shared perception by employees of the employer’s policies, procedures, and activities focused on creating a sense of belongingness, while valuing the uniqueness of each individual employee Kulik & Perry (2023), p. 303 2 Inclusion ALL employees both those who have historically been powerful and underrepresented in the cultural context are Treated fairly Valued for who they are Included in core decision making Belongingness Uniqueness Source: Shore, L. M., Cleveland, J.N., & Sanchez, D. (2018). Inclusive workplaces: A review and model. Human Resource Management Revi ew, 28, 176-189. 3 Image: Creator: melitas | Credit: Getty Images/iStockphoto Formal Inclusion Policies & Practices Increasing diversity: 1. Recruitment and Selection of targeted demographic categories Selection is controversial: Potential to delegitimize the individual Recruitment is better option 2. Targeted leadership and development programs for demographic categories Risk of delegitimization What message is being sent: “Fix the minority” or focusing on structural barriers? How are candidates identified: Self-identification vs structured process? Source: Kulik & Perry (2023), pp. 303-308; Ely, R. J., Ibarra, H., & Kolb, D. M. (2011). Taking gender into account: Theory and design f rom women’s leadership 4 development programs. Academy of Management Learning and Education, 10, pp. 474-493. Formal Inclusion Policies & Practices Enhancing Inclusion: 1. Diversity and anti-bias training Context-dependent Risk of backfiring 2. Making minority employees feel like they belong: Proactive mentorship programs Actively creating connections between employees Highlight the value of each employee Source: Women in the workplace 2022. McKinsey & Company; Kulik & Perry (2023), pp. 303-308; Nishii, Khattab, Shemla,& Paluch (2018). A multi-level process 5 model for understanding diversity practice effectiveness. Academy of Management Annals, 12, 37-82. Formal Inclusion Policies & Practices Creating Accountability: 1. Measure the demographic make-up of the organization 2. Make performance evaluation contingent on inclusion statistics Source: Women in the workplace 2022. McKinsey & Company; Kulik & Perry (2023), pp. 303-308; Nishii, Khattab, Shemla,& Paluch (2018). A multi-level process 6 model for understanding diversity practice effectiveness. Academy of Management Annals, 12, 37-82. Informal Inclusion Practices: Managerial actions 1. Informal mentorship 2. Support Flexible Work Arrangements 3. Develop a team charter 4. Outwardly demonstrate support for inclusion Source: Kulik & Perry (2023), pp. 308-317 7 Key Takeaways Formal organizational policies need to be aligned with managerial actions Formal policies should focus on a) increasing diversity, b) enhancing inclusion, and c) creating accountability. Informal policies can include a) proactively building relationships, b) emphasize work outcomes rather than time, c) developing a team charter, and d) using inclusive language. 8 Performance management Performance measurement RSM - a force for positive change Performance measurement Performance measurement “refers to a formal process, which occurs infrequently, by which employees are evaluated by some judge (typically a supervisor) who assesses the employee’s performance along a given set of dimensions, assigns a score to that assessment, and then usually informs the employee of his or her formal rating.” Source: DeNisi & Murphy (2017). Performance appraisal and performance management: 100 years of progress? Journal of Applied Psychology, 102, 421-433; 2 https://www.marcusbuckingham.com/rwtb/performance-management-is-two-things/ Performance appraisal: Example “The Office” (US version) Source: https://www.youtube.com/watch?time_continue=4&v=Wx8HXtlxdEs&feature=emb_logo 3  Rater Errors Explanation Leniency / Severity Error A rater consistently rates employees at the high / low end of the scale Central Tendency Error A rater consistently rates employees at the scale midpoint A rater’s evaluation of an employee on one performance dimension creates an overall Halo Error positive or negative impression that drives ratings on other dimensions. A rater’s evaluation is heavily influenced by the employee’s first / most recent Primacy / Recency Error performance. A rater’s evaluation of an average employee is boosted after rating a poor employee, Contrast Error or lowered after rating an excellent employee. A rater’s evaluation of an employee is inflated because the rater feels a personal Similar-to-Me Error connection resulting from shared demographics, values, or experiences. Source: Kulik & Perry (2023), p. 182 4 Mount, Scullen, & Goff (2000). Understanding the latent structure of performance ratings. Journal of Applied Psychology, 85, 956-970. Reducing Error & Biases e.g., frame of reference training or calibration Training To recognize and distinguish different levels of performance e.g., let rater keep a journal Memory Aids Recording information throughout the review cycle e.g., other / more senior manager reviews evaluations or company rewards good evaluations Accountability Raters should expect to have to justify their evaluations to others. 5 Two classic approaches: Ranking and Rating Comparative Rating Methods Absolute Rating Methods “Ranking” “Rating” Example: Forced distribution Example: Behaviourally Anchored Rating Scale (BARS) Easy to use Explicit behavioral standards that anchor rater’s scores in behaviors (which employees perceive as fair) Useful for eliminating poor performance and distributing bonuses Rating level descriptions provide some feedback Unpopular with employees (seen as capricious and political) Need unique scales for each job No support for employee development Still comparatively little support for personal development (descriptions Promotes internal competition, leading to a higher likelihood of mainly focus on level of achievement, providing little input on how to aggressive culture and unethical practices improve) Source: Kulik & Perry (2023), p. 177 6 DeNisi & Murphy (2017). Performance appraisal and performance management: 100 years of progress? Journal of Applied Psychology, 102, 421-433;  Improving performance measurement (I/II) 1 Critical incident technique 2 360-degree feedback Concrete behavioural examples Multi-source review Can be time-consuming (and thus costly) for supervisors. Bureaucratic process, given the different sources used. Requires excellent observational skills. Provides relevant information for personal development. Ratings based on concrete behavioral examples. Promotes a climate of continuous improvement. Memory aid and performance measurement in one. Especially helpful when employees work with many different parties and Meaningful information for personal development. supervisors have limited insight into performance. Source: Carbery & Cross (2018), pp. 126-128 7  Improving performance measurement (II/II) 3 Sample competencies for consultants To reduce subjectivity, organisations may opt to only measure ‘results’ (e.g., % sales increase, number complaints) But: Results are not always under employee control and actions not contributing to results may be disregarded Organisations are thus advised to also measure ‘competencies’ (i.e., knowledge, skills and attitudes) Source: Carbery & Cross (2018), p. 126-128; Martone (2003). A guide to developing a competency-based performance management system. Employment 8 Relations, 30, 23-32. Key takeaways The performance measurement process needs to be standardized due to rater error and human biases that distort ratings of employee performance. Rating errors and biases can be addressed through training, memory aids, and accountability Ranking and rating are traditional approaches to performance measurement. To increase accuracy and meaningfulness, the critical incident method and 360-degree feedback can be used. Measure ‘what’ (results) employees deliver and ‘how’ they do it (competencies). 9 Performance management Trends RSM - a force for positive change 2 Source: Buckingham, M., & Goodall, A. (2016, October). The performance management revolution. Harvard Business Review. https://hbr.org/2016/10/the-performance-management-revolution Wilkie, D. (2015, August 19). Is the annual performance review dead? SHRM. https://www.shrm.org/topics- tools/news/employee-relations/annual-performance-review-dead 3  ^ Problems with performance reviews Performance reviews focus on identifying past mistakes rather than developing strengths → To: Strength-based Feedback → To: Focus on Future Behavior and Personal Development Infrequent and poor alignment with employees’ progress → To: Continuous and Personalized Feedback Source: Buckingham, M., & Goodall, A. (2016, October). The performance management revolution. Harvard Business Review. https://hbr.org/2016/10/the-performance- management-revolution Gallot Lavallée, S., Pedroni, A., Komm, A., & Noguera Lasa, A. (2024, May 15). In the spotlight: Performance management that puts people first. McKinsey. https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/in-the-spotlight-performance-management-that-puts-people-first 4 Why strengths-based feedback? “Although we label weaknesses “areas of opportunity,” brain science reveals that we do not learn and grow the most in our areas of weakness. In fact the opposite is true: we grow the most new synapses in those areas of our brain where we have the most pre-existing synapses. Our strengths, therefore, are our true areas of opportunity for growth.” Source: Buckingham, M. (2013). What if performance management focused on strengths? Harvard Business Review. https://www.youtube.com/watch?v=JAVCr6rwwv4; Aguinis et al. (2012). Delivering effective performance feedback: The strengths-based approach. Human 5 Performance, 55, 105-111. The feedforward interview protocol Step 1: Helping the employee to identify a personal success story − Focus on positive experiences only − Let employee describe nature of positive emotions in that moment Step 2: Helping the employee to discover their personal success code − Personal characteristics and actions − Supporting actions of others (e.g., supervisor, peers) − Supporting conditions created by organisation (e.g., access to information) Step 3: Helping the employee to align their future with their personal success code − Asking the feedforward question Source: Kluger, A. N., & Nir, D. (2010). The feedforward interview. Human Resource Management Review, 20, 235-246; https://www.youtube.com/watch?v=axC- 6 lXu-G-I. ADOBE disrupted performance reviews Source: https://www.youtube.com/watch?v=hr0tOih9uFw; https://www.adobe.com/check-in.html. 7 Key takeaways Employees and managers tend to dislike traditional (annual) performance reviews. Strength-based feedback views employee strengths as the true opportunities for growth. The feedforward interview is an interview protocol used for providing strength-based feedback. Continuous feedback conversations provide real-time feedback that take employees progress into account. ADOBE introduced a system called “Check-In” to provide more meaningful and timely feedback to their employees. 8   MAKE BETTER PEOPLE MANAGEMENT DECISIONS TRUE OR FALSE? TRUE OR FALSE? TRUE OR FALSE?           QUESTIONS/FEEDBACK? OR FIND SOMEONE WEARING THIS SWEATER? Do not hesitate to approach us personally, message us on Facebook, or fill in one of our online surveys! Human Resource Management Fiona Munzinger Elena Durrans [email protected] & [email protected] Evidence-based HRM Importance, learning objectives, and takeaways RSM - a force for positive change Evolution of People Management Learning objectives Explain the basic principles of Human Resource Management, Strategic Human Resource Management, and the Evidence-based approach to HR. Understand what evidence to use in an evidence-based approach, as per the LESS model of Evidence-based HR. Understand the 5 A’s Evidence-based practice model as it applies in HR and people management. Appreciate the role of job analyses as a building block for HR policies and practices. 4 Takeaways Human Resource Management developed from Personnel Management and treats employees as a resource instead of a cost. Strategic Human Resource Management is about aligning HR policies and practices with the organizational strategy. “Evidence” in the Evidence-based approach is about combining facts, data, perspectives, and research from the local context, your own experience, stakeholders, reports and scientific-publications to make people management decisions. Job analysis concerns the process of gathering detailed information about the various tasks and responsibilities involved in a job or position. 5 Evidence-Based HRM Key concepts RSM - a force for positive change What is Human Resource Management? The overall process of managing people in organizations. Source: Kulik, C. T., & Perry, E. L. (2023). Human resources for the non-HR manager (2nd ed.). Routledge, p. 1. 2 1945 - 1979 From Personnel Management Specialization in functions (e.g., recruitment, training, payroll). Employees mostly seen as a cost to the organization. To Human Resource Management Resource-based view: Employees are considered a resource that is crucial for the competitive advantage of the organization. 1980 - Present 3 (D)Evolution of HRM Human Resource Strategic HRM Evidence-based HRM Management Resource-based view: Aligning HR-practices Using scientific Employees are with one-another and evidence as well as considered a resource with the organization’s business information in that is crucial for the strategy making people- competitive advantage management decisions of the organization. Devolution Transfer of responsibilities from HR specialists working in, and identified with, a centralized HR unit to line managers in other units. Sources: Armstrong, M. (2021). Armstrong’s handbook of strategic human resource management: Improve business performance through strategic people management (7th ed.). KoganPage. 4 Kulik, C. T., & Perry, E. L. (2023). The Non-HR Manager. In Human resources for the non-HR manager (2nd ed.). Routledge. Takeaways Human Resource Management (HRM) evolved from Personnel Management. HRM takes a resource-based view, where employees are seen as a resource instead of a cost. Evidence-based HRM emerged from the need to improve HR policies and practices and demonstrate their added value. In a process called devolution, many responsibilities transferred from HR specialists working in a centralized HR department to line managers in other units. 5 Strategic Human Resource Management RSM - a force for positive change What is the goal of the organization? What an organization hopes to achieve in the medium- to long-term. Vision: What the organization expects to become at a particular time point in the future. Mission: What the organization expects to do in order to become the organization it has envisioned. Source: Lussier & Hendon (2022). Human resource management: Functions, applications, and skill development. Thousand Oaks, CA : Sage. p. 40 2 What is the strategy? Strategy: A plan of action designed to achieve a set of objectives. Cost leadership – reduce costs Differentiation – perceptions of difference Vision Strategic Choice (options) Mission Source: Lussier & Hendon (2022). Human resource management: Functions, applications, and skill development. Thousand Oaks, CA : Sage. p. 39-42 3 HRM implications of strategic choice Cost Leadership Differentiation Narrow job roles – maximize efficiency Broad job roles – maximize cross Hire and train specific skill sets fertilization Performance-based compensation Hire people that cooperate, are (e.g., pay per attached iPad screen) creative, reflective Pay for market value of employee Determining the right strategy: SWOT Opportunities Role of HRM: Threats Internal analysis: strengths & weaknesses of workforce? Vision External analysis: untapped Strategic labor pools, labor shortages, Choice who are competitors for same Mission labor? What human resources are Strengths needed to accomplish goals? Weaknesses Source: Ansoff, H. I. (1980). Strategic issue management. Strategic Management Journal, 1, 131-148, 5 Good SHRM = Good Alignment Vertical Alignment: The matching of HRM policies and Strategic practices with business strategy Choice Horizontal Alignment: Strong consistency and interconnections between HRM policies and practices Strategy Performance Reward Selection Implemen Management Management Strategy Strategy Strategy tation Source: Huselid, Jackson, & Schuler (1997). Technical and strategic human resource management effectiveness as determinants of firm performance. Academy of Management Journal, 40, 171-188,; Schuler & Jackson (1987). Linking competitive strategies with human resource management practices. Academy of 6 Management Executive, 1, 209-213. Takeaways In strategic human resource management, HRM practices and policies are aligned with the strategy of the organization and HRM practices and policies are aligned with each other. The strategic choice comes from the vision, mission, and the SWOT analysis. HR departments contribute to the SWOT analysis by assisting in the internal and external analysis of the workforce. 7 Evidence-based HRM The LESS Model of EBHRM RSM - a force for positive change What is Evidence-Based HRM (EBHRM)? Evidence-based HRM is an approach to decision-making that concerns the effective use of scientific evidence as well as business information in making people- management decisions Sources: Kulik, C. T., & Perry, E. L. (2023). The Non-HR Manager. In Human resources for the non-HR manager (2nd ed.). Routledge. Rousseau, D. M., & Barends, E. G. R. (2011). Becoming an evidence-based HR practitioner. Human Resource Management Journal, 21(3), 221–235. 2 https://doi.org/10.1111/j.1748-8583.2011.00173.x  Evidence-Based Decision Making L S Local context E S Scientific-evidence Facts and data from the local Experience Stakeholders Insights from scientific organizational context that research that are relevant to can help identify and address Professional expertise and Conscious consideration of the problem or issue at hand. people management issues. experience with similar the impact of your decisions people management issues in on your employees and other other contexts, or stakeholders, such as your organizations adopting bosses, your clients, and your particular HR practices. suppliers. Source: Kulik, C. T., & Perry, E. L. (2023). The Non-HR Manager. In Human resources for the non-HR manager (2nd ed.). Routledge. 3 Facts and data from the Local context Primary data Secondary sources Databases - Human Resource Information Systems (HRIS) - Customer DBs Collected specifically to address our issue. - External DBs Policies, procedures Includes and reports - Satisfaction surveys - Focus groups on specific questions (e.g., “what do you think of our flexible working policy?”) Data collected with a different or no primary purpose in - Interviews with specific groups (e.g., “managers, what mind are your biggest challenges?”) Includes - Absence levels - Time to recruit each job - Customer satisfaction by team - Information on policies and practices 4 Scientific evidence What is it How to find it 1. Evidence of research conducted and reported Where can I find peer-reviewed articles? using scientific quality standards Scopus (https://scopus.com) Empirical Articles Web of Science (https://webofscience.com) Review Articles ~Google Scholar (check journal!) Theoretical Articles How can I determine the (scientific) quality of the evidence? 2. Published in a peer-reviewed journals (e.g., Directly by looking at the quality of the study Academy of Management Journal, Journal of Applied Indirectly, by looking at the ranking of the journal and the Psychology, Journal of Management) times the article is cited (e.g., https://harzing.com/resources/journal-quality-list; https://www.scopus.com/sources.uri) 5 Takeaways Evidence in EB-HRM can be scientific evidence and business information. By following the LESS Model, you consider and integrate the key sources of evidence in your approach to people management issues. Local context information can be primary data, but also secondary data. Scientific evidence is published in a peer-review journal. The quality of scientific evidence can be determined by evaluating the evidence directly (e.g., sample, biases, methods) and indirectly (e.g., journal, citations). 6 Evidence-based HRM The 5 A's of Evidence-based Practice RSM - a force for positive change The 5 A’s of Evidence-Based Practice ASK: Check the symptoms and formulate a clinical question. Assess Ask ACQUIRE: Search for evidence. APPRAISE: Critically evaluate the quality and relevance of the evidence. APPLY: Integrate the best available evidence with your clinical expertise and consider the patient’s Apply Acquire preferences to decide on the best treatment plan. ASSESS: Evaluate the effectiveness and efficiency of the process and seek ways to improve. Appraise Source: Sackett, D. L. (1997). Evidence-based medicine. Seminars in Perinatology, 21(1), 3–5. https://doi.org/10.1016/S0146-0005(97)80013-4 2  Assess Ask Apply Acquire ASK: Identify the issues and formulate a problem statement. ACQUIRE: Search for evidence. Appraise APPRAISE: Critically evaluate the quality and relevance of the evidence. APPLY: Combine the evidence with your expertise and understanding of the organizational context and stakeholders’ interests to design the most effective strategy and create an action plan. ASSESS: Monitor and review the outcomes to ensure the desired impact and make improvements as needed. 3 An Example: Google’s Approach to Selection Early 2000’s Rapid Growth: Google needed to scale its workforce efficiently to keep up with market demands. Poor Results from Selection Methods: Unstructured interviews and subjective evaluations led to inconsistent hiring decisions. Bias: The existing methods were prone to interviewer bias, affecting the fairness and reliability of hiring outcomes. Low fit: Many new hires did not meet performance expectations, resulting in high turnover and misalignment of skills. Source: Bock, L. (2016). Work rules! Insights from inside Google that will transform how you live and lead. John Murray. 4 Ask: The problem (statement) How can Google improve its hiring process to ensure consistent, fair, and effective selection of candidates when handling large numbers of vacancies and applicants? 5 Acquire & Appraise Local Context: Internal: hiring success Experience: Leaders like Laszlo Bock rates, employee performance, and and Prasad Setty leveraged their turnover statistics. External: Other experience and logical argumentation tech companies and industry best to critically appraise the evidence. practices. Stakeholders: Feedback from current Scientific Research: Drew from employees, hiring managers, scientific studies on biases and leadership and (prospective) effective hiring practices. candidates. Beware that LESS is relevant at each stage! Source: Kulik, C. T., & Perry, E. L. (2023). The Non-HR Manager. In Human resources for the non-HR manager (2nd 6 ed.). Routledge. Apply: Combine the Evidence into an Action Plan 7 Assess: Monitor and Review the Outcomes Create a plan for how you want to monitor and review the outcomes, even if you are not the one implementing the action plan Source: https://www.youtube.com/watch?v=KY8v-O5Buyc&list=PLmQ48Dw9bCmjAGtMJ-b_F4Knc7RNZpUQo&index=9 9 Takeaways The 5 A’s model can be used as a guide in the process of Evidence- based practice. The 5 A’s are Ask, Acquire, Appraise, Apply, Assess. The LESS model can help ensure that you use the right evidence and use that evidence correctly, and it is relevant at every stage of the process. It is crucial to consider how the outcome will be monitored and reviewed, even if you aren’t responsible for the implementation 11 Job Analysis RSM - a force for positive change What is a job analysis? The process used to gather detailed information about the various tasks and responsibilities involved in a position. Through this process, the knowledge, skills, abilities, attitudes, and behaviors associated with successful performance in the role are also identified. Source: Harvey R.J. (1991). Job analysis. In Handbook of Industrial and Organizational Psychology, ed. MD Dunnette, LM Hough, vol. 2, pp. 71–163. Palo Alto, CA: Consult. Psychol. Press. 2nd ed. When and why do a job analysis? Building block of many HR processes: Recruitment and Selection (e.g., job description, people specification) Performance management (e.g., performance appraisal criteria) Reward management (e.g., compensation plans) Learning and development (e.g., training needs assessment) 3 Source: Ash, R. A., & Levine, E. L. (1980). A framework for evaluating job analysis methods. Personnel, 57(6), 53–59. Job analysis: An example Job analysis: Methods Background information (e.g., online sources, organization charts, HR systems) Observation (watching what people do) Questionnaires Interviews Work diary or log Wearables Source: Morgeson, F. P., Brannick, M. T., & Levine, E. L. (2019). Job and work analysis: Methods, research, and applications for human resource management. SAGE: Thousand 5 Oaks, CA. Job analysis: An example Education Basic functions and scope No specific degree requirements needed, Take orders and serve food but high school diploma or equivalent and beverages. desirable. Experience Work tasks A minimum of 2 years of 30% Cleaning & preparations experience warranted. 20% Serve food or beverages 20% Remove dishes and glasses 10% Take orders from guests Decision-making authority … Reports to: Head waiter Source: National Center for O*NET Development. Summary report for waiters and waitresses. Retrieved 6 July, 2020, from https://www.onetonline.org/link/summary/35- 6 3031.00 Outcomes of job analysis Job Analysis Job Description Person Specification Outlines the typical job Outlines the essential and duties, tasks, and desirable criteria of the responsibilities person doing the job Source: https://www.shrm.org/resourcesandtools/tools-and-samples/toolkits/pages/performingjobanalysis.aspx 7 Takeaways Job analysis is the process used to gather detailed information about the various tasks and responsibilities involved in a position. Job analysis is most commonly used in recruitment and selection, but is also useful for other areas in HR. Data for a job analysis can be collected through a variety of methods. Outcomes: Job description and person/job specification. 8 Recruitment & selection Relevance, learning objectives, and takeaways RSM - a force for positive change Relevance of Recruitment & Selection Workforce provides a unique competitive advantage since people can: Add considerable value Be unique (or at least rate) Be difficult to replicate Recruitment & selection serves to achieve this 2 Jack Welch, former CEO of GE Source: Welch, J. (2013). Jack Welch: The role of HR. Retrieved from https://www.youtube.com/watch?v=rByDmC0SqtM Learning objectives 1. Explain the key concepts in HR forecasting planning, recruitment & selection 2. Design an effective recruitment & selection process 3. Evaluate the effectiveness of various recruitment & selection methods 4. Explain the dangers of using an inadequate approach to recruitment & selection 4 Takeaways 1. Human Resource forecasting is a key stage of strategic recruitment and selection. 2. Effective recruitment is about attracting the ideal candidate(s), who show a high fit with the position and organisation. 3. Effective selection is about using selection instruments that adhere to the five quality criteria and have high predictive validity. 5 Recruitment and selection HR forecasting RSM - a force for positive change Strategic recruitment & selection Business strategy Workforce planning Recruitment Selection Source: 2 Human Resource planning process Forecasts of labor Goal setting & strategic planning Process of identifying the estimated supply and demand for different types of human Implementation resources in the organization over some future period, based on analysis of the past and present Evaluation Source: 3 1. Forecasting Determining the supply and demand of various types of human resources: Quantitative forecasting: trend analysis – historical data; ratio analysis – calculating proportions; regression analysis – statistical relationship between variables Qualitative forecasting: expert knowledge Source: [full reference if a paper, or book reference: “Textbook, p.xxx”] 4 2. Goal setting & strategic planning Labor surplus: Labor shortage: Reduce the number of Increase the number of employees employees Hiring freeze Overtime Early retirements Outsourcing Downsizing Hiring new workers Source: [full reference if a paper, or book reference: “Textbook, p.xxx”] 5 Implementation & Evaluation Forecasts of labor Goal setting & strategic planning Implementation Evaluation Source: 6 Takeaways HR forecasting: Determining labor surplus and shortage Expected labor demand and supply Ways of addressing labor shortage & surplus vary in speed an impact 7 Recruitment & Selection Recruitment Strategy RSM - a force for positive change Recruitment The job Attractiveness Fit The organization Source: Kulik & Perry (2023). Chapter 2: Recruiting employees. New York: Routledge Balancing attractiveness and fit How could I have known?! Employer brand(ing) “[The extent to which] an organization is recognized in its own right as a desirable place to work […] by the internal and external labour market” (Carberry & Cross, 2018, p. 44) “A set of attributes and qualities – often intangible – that makes an organisation distinctive, promises a particular kind of employment experience, and appeals to those people who will thrive and perform to their best in its culture” (Walker, 2007, p. 44) Source: Walker, P. (2007). How to develop an effective employer brand. People Management, 13(21), 44–45. Think about the following 1) Do you get a sense of the personality early on in the video or do you have to wait to the end to know what the organization is about? 2) Does the video focus on benefits for the applicant or the needs of the employer? 3) Can you name any values of HubSpot after watching this video? 4) Do the words you hear match the images you see? 5) Does the workplace come across as especially attractive to men, or to women? Or perhaps to white people or able-bodied people? 5 Effective employer branding Perception of brand: Shaped by degree of familiarity with the organization and external ratings of reputation Shaped more by diffuse than by explicit cues – explicit communication has a limited effect Implication for employer branding? Spending money on making big explicit statements is pointless if the diffuse cues about the brand say something else Congruency required between employer branding and: Corporate & organizational identity (internal) Current brand image (external) Sources: Barrow, S., House, G., Housley, S., Jenner, S., Martin, G., Mensink, J., … Taylor, S. (2007). Employer branding: The latest fad or the future for HR? London, United Kingdom: Chartered Institute of Personnel and Development. Lievens, F., & Slaughter, J. E. (2016). Employer image and employer branding: What we know and what we need to know. In F. P. Morgeson (Ed.), Annual Review 6 of Organizational Psychology and Organizational Behavior (Vol. 3, pp. 407–440). How do you recruit? Low involvement strategies High involvement strategies Known company with positive image Proactively discuss reputation, values, and work culture Source: Kulik & Perry (2023), p. 30 7 Who does the recruiting? Source: Kulik & Perry (2023), p. 30 8 Diversifying your pool 9 Takeaways Successful recruitment provides signals about the attractiveness of job/organisation and fit between person and job/organisation Important strategic consideration is your employer brand: What? How? Who? Spending on explicit cues in employer branding is inadvisable if it runs counter to the diffuse cues that potential applicants are/have been exposed to Recruitment & Selection Recruitment Practices RSM - a force for positive change Where to recruit? External recruitment Internal recruitment Newspaper ads Online postings Campus recruiting Search firms Employment agencies Source: Kulik & Perry (2023), pp. 18-25 2  Effective recruitment WIDE NETS WIDE TRAWLS Source: Chartered Institute of Personnel and Development. (2017). Resourcing talent planning. Retrieved from Chartered Institute of Personnel and Development website: https://www.cipd.co.uk/Images/resourcing- talent-planning_2017_tcm18-23747.pdf 3 Where to recruit? External recruitment Internal recruitment Newspaper ads Email listserv/intranet Online postings Employee referral program Campus recruiting Hiring former employees Search firms Employment agencies Source: Kulik & Perry (2023), pp. 18-25 4 Evaluating recruitment methods Cost per hire Total recruiting costs divided by the number of new hires Time-to-fill-rate The length of time it takes from the time a job opening is announced until someone starts the job Diversity The extent to which your applicants are similar or different from your current workforce Yield ratio The number of realistically viable applicants divided by the number of total applicants Source: Kulik & Perry (2023), pp. 16-17 5 Comparing internal and external recruiting Cost Speed Diversity Yield ratio External Recruiting Print ads Low-Moderate Moderate- High Poor Fast Interned-based recruiting Low-Moderate Extremely Moderate- Poor Fast High Campus recruiting, search firms, and Moderate-High Slow- Moderate- Moderate-High employment agencies Moderate High Internal recruiting Job posting Extremely Low Slow-Fast Low High Employee referrals Low-Moderate Slow-Fast Low High Former employees Low Slow Low High Source: Kulik & Perry (2023), p. 26 6 Realistic Job Preview Source: Wanous, J. P. (1973). Effects of a realistic job preview on job acceptance, job attitudes, and job survival. Journal of Applied Psychology, 58, 327-332. 7 Takeaways External recruitment methods – attract applicants from outside the organization Internal recruitment methods – attract applicants with extensive familiarity with the organization Evaluate recruitment using costs, time, diversity, and yield ratio Provide a realistic job preview Recruitment and selection Quality of the selection process RSM - a force for positive change Strategic selection Business strategy Job analysis Selection Source: Textbook, p. 38 2 The argument for objectivity in selection Source: https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/trust-your-gut-hiring-decisions.aspx; http://hrnews.co.uk/over-reliance-on- 3 gut-instinct-is-leading-to-bad-hiring-decisions/; https://www.youtube.com/watch?v=Q0ne13lv8hE How to find ‘the best’ approach? Validity Reliability Legality 4  Quality criteria: Legality / adverse impact When employment practices that appear neutral disproportionally impact members of a protected group, without business necessity. Legality Adverse Impact 5 Source: Lussier, R. N., & Hendon, J. R. (2018). Human Resource management: Functions, Applications, and Skill Development 3 rd edition. Sage. Quality criteria: Reliability The extent to which the measure consistently measures what it sets out to measure Reliability 6 Quality criteria: Validity The extent to which a selection method measures what it purports to measure and how well it does this + “Inferences and actions based on the test outcome(s) are adequate and appropriate" (Messick, 1988, p. 33) Validity 7 Reliability & Validity Visualization A B C 8 Takeaways We need an objective approach to selection to limit the influence of unconscious biases and ‘gut feeling’ on selection decisions. Selection tools can be evaluated according to Legality Reliability Validity 9 Recruitment and selection Selection Toolkit RSM - a force for positive change Three things to consider: 1. CAN this applicant do the job? Cognitive ability tests; Job knowledge tests 2. WILL this applicant do the job? Personality tests; Interests tests 3. HAS this applicant experience doing the job? CV; Interviews Source: [full reference if a paper, or book reference: “Textbook, p.xxx”] 2  Which selection instruments are best? Job Specific General r - job r - job performance performance Employment interviews -.42 Cognitive ability tests.31 structures Integrity tests.31 Job knowledge tests.40 Personality-based Emotional.30 Biographical data.38 Intelligence Work sample tests.33 Conscientiousness -.25 contextualized Assessment centers.29 Interests.24 Source: Sackett, P. A., Zhang, C., Berry, C. M., & Lievens, F. (2022). Revisiting Meta-analytic estimates of validity in personnel selection: Addressing systematic 3 overcorrection for restriction of range. Journal of Applied Psychology, 107(11), 2040-2068.  Selection tools: Proceed carefully Use with Caution Avoid Personality Assessment: Cognitive Ability Tests: Openness to experience Possibility for Adverse Agreeableness Impact Neuroticism Unstructured Interviews Source: Sackett, P. A., Zhang, C., Berry, C. M., & Lievens, F. (2022). Revisiting Meta-analytic estimates of validity in personnel selection: Addressing systematic 4 overcorrection for restriction of range. Journal of Applied Psychology, 107(11), 2040-2068.  How to do effective interviews: Structure! Base interview guideline on insights from job analysis Use a mixture of situational, behavioural, and job-related questions Evaluate candidate answers on anchored-rating scales Document your decisions and conversations 5 Source: Campion, M.A., Palmer, D.K., Campion, J.E. (1997) A Review of Structure in the Selection Interview. Personnel Psychology, 50(3), 655-702. Takeaways Selection tools vary in their reliability and validity More job specific selection tools are generally better than more general selection tools, but also more expensive Structured interviews, job knowledge tests, and cognitive ability tests are some of the best selection tools that we have. Structured interviews should be populated with questions based on the job analysis, asking behavioural questions, evaluate candidates using anchored scales, and document every decision. 6 Learning & Development Relevance, learning objectives, and takeaways RSM - a force for positive change Reason 1: Attract and retain talent Source: Rigoni & Adkins (2016). What millennials want from a new job. Harvard Business Review. 2 Reason 2: Achieve business results Source: Arthur et al. (2003). Effectiveness of training in organizations: A meta-analysis of design and evaluation features. Journal of Applied Psychology, 88, 234 – 245. Aguinis & Kraiger (2009). Benefits of training and development for individuals and teams, organizations, and society. Annual Review of Psychology, 60, 451– 3 474; Rigoni & Adkins (2016). What millennials want from a new job. Harvard Business Review. Reason 3: Remain competitive Source: https://www.shrm.org/resourcesandtools/hr-topics/organizational-and-employee-development/pages/amazon-commits-to-investing-millions-in- 4 training.aspx Learning objectives 1. Explain the key concepts in learning and development 2. Understand the importance of onboarding processes 3. Review the stages of the ADDIE model 4. Design effective training evaluation 5. Evaluate trends in learning and development Source: https://hbr.org/2019/10/where-companies-go-wrong-with-learning-and-development 5 Takeaways 1. Learning can be understood from the perspective of cognitivism, behaviourism, and experiential learning. 2. Effective onboarding practices give access to both information and relationships and are critical for the retention of employees. 3. The ADDIE model is a standardized instructional design approach that consists of five stages: Analysis, Design, Development, Implementation, and Evaluation. 4. The most robust form of training evaluation relies on measuring behavioral changes and organizational outcomes. 5. Learning and development is becoming more mobile, social, and adaptive. 6 Learning and development Key theories RSM - a force for positive change Three schools of learning: Cognitivism Learning Receiving, organizing, storing, and process retrieving information Outcome Change in mental schema Key figure Jean Piaget (1886-1980): Theory of Cognitive Development Example Quizzes, chunking information, graphic organizers Source: Ertmer, P.A., & Newby, T.J. (1993). Behaviorism, cognitivism, constructivism: Comparing critical features from an instructional design perspective. 2 Performance Improvement Quality, 6, 50-72. Three schools of learning: Behaviorism Learning Learning and behavioral change through process punishments and rewards Outcome Change in behavior Key figure Ivan Pavlov (1849-1936): Operant conditioning Example Bonus for a job well done, poor performance review Source: Ertmer, P.A., & Newby, T.J. (1993). Behaviorism, cognitivism, constructivism: Comparing critical features from an instructional design perspective. 3 Performance Improvement Quality, 6, 50-72 Three schools of learning: Experiential Learning Learning Learning from experience, through process reflection, thinking, and experimenting Outcome New skills through experimenting Key figure David Kolb: Experiential Learning Cycle (1984) Example Cycling faster, after event review Source: Kolb, D. A. (1984). Experiential learning: Experience as the source of learning and development (Vol. 1). Englewood Cliffs, NJ: Prentice-Hall. 4 Three schools of learning Learning theory Learning and development activities Cognitivism Stimulate previous knowledge Sequence learning to optimize information processing Use activities, such as demonstrations, concept mapping The topic drives the Behaviorism Apply positive feedback, encouragement, choice of learning and reinforcement Link practice to feedback theory Design training room to guide and promote positive behaviours Experiential learning Encourage creating experiences, reflecting on the experience, and thinking about lessons learned Encourage active experimentation and planning to do things better Source: Ertmer, P.A., & Newby, T.J. (1993). Behaviorism, cognitivism, constructivism: Comparing critical features from an instructional design perspective. Performance Improvement Quality, 6, 50-72.; Kolb, D. A. (1984). Experiential learning: Experience as the source of learning and development (Vol. 1). Englewood 5 Cliffs, NJ: Prentice-Hall. Learning styles Source: Brouwer, Woodhill, Hemmati, & Verhoosel (2015). The MSP guide: How to design and facilitate multi-stakeholder partnerships. Wageningen UR, Centre for Development Innovation, p. 117,; Rogowsky, B. A., Calhoun, B. M., & Tallal, P. (2015). Matching learning style to instructional method: Effects on 6 comprehension. Journal of Educational Psychology, 107(1), 64–78. Instructional principles Information Provides the concepts, facts, and information trainees need to know. Demonstration Shows examples of the knowledge, attitudes, and behaviors targeted by the training Practice Creates opportunities to practice using the trained knowledge, attitudes, and behavioral skills Feedback Provides timely, meaningful, and diagnostic feedback with opportunities to make corrections Source: Kulik & Perry (2023), p. 142 7 Key takeaways Three main theoretical perspectives on learning: Cognitivism Behaviorism Experiential Learning All training should include information, demonstration, practice, and feedback Learning styles are intuitively appealing, but limited research shows benefits for learning 8 Learning and development Onboarding RSM - a force for positive change Onboarding & Socialization Those formal and informal practices, programs, and policies enacted or engaged Onboarding: in by an organization or its agents to facilitate newcomer adjustment. The psychological process by which employees come to think of themselves as organizational insiders. Socialization: Learning about processes and how to get work done Identify with work and organization Source: Kulik & Perry (2023), p. 112. 2 Goals of Onboarding Performance.15.18 Job Role clarity.21 satisfaction.10.14 Information.25.11 Organizational commitment Self-efficacy.09.25 -.12 Social.42.10.23 Intentions to activities.29 remain.17 Social.18 acceptance -.13 Turnover Source: Bauer, T.N., Bodner, T., Erdogan, B.., Truxillo, D. M., & Tucker, J. S. (2007). Newcomer adjustment during organizational socialization: A 3 meta-analytic review of antecedents, outcomes, and methods. Journal of Applied Psychology, 92(3), 707-721. Effective Onboarding: Information Information Needed for All Employees: Wifi access; Laptop; Organization Credentials The Basics General company policies What is needed for the employee to be successful in their specific job Online training Job Specific In-person training Creating an insider identity Values of the organization Orientation History and important people in the organization Source: Kulik & Perry (2023), pp. 112. 4 Effective Onboarding: Relationships Avenues for information Ensure people belong - Day 1 meeting - Connect to newcomers - Connect to mentors Source: Kulik & Perry (2023), pp. 152-155. 5 Your Role as Manager What does your Encourage employee need proactivity to know? Make time for your new employee 6 Takeaways Effective onboarding sets the tone for a new employee's experience and long-term success in the organization. The first three months are critical for fostering role clarity, self-efficacy, and social acceptance. Onboarding should combine essential information with relationship-building activities to support both job performance and employee retention. Tailor onboarding strategies to align with your organization's culture, values, and the unique needs of the role. Managers play a crucial role in onboarding by providing guidance, support, and opportunities for new employees to connect and integrate. 7 Learning and development Maximizing training effectiveness RSM - a force for positive change The ADDIE model consists of five stages Analysis Develop Implement Evaluate Design Source: Goldstein, I. L., & Ford, J. K. (2002). Training in organizations: Needs assessment, development, and evaluation (4th ed.). Wadsworth/Thomson Learning. 2 ADDIE model: Analysis Needs analysis describes the process of gathering and analysing data to determine the learning and development needs within an organisation. What skills? Who needs training? Source: Harrison, D. (2009). Learning and development. London: CIPD. Kulik & Perry (2023), pp. 145-148. 3 ADDIE model: Design The design stage involves building a programme that meets the learners’ needs by defining an overall approach to the learning and development content. Four key steps: 1. Formulation of learning objectives 2. Planning of assessment strategy 3. Determining levels, types, and difficulty 4. Selection of delivery method Source: Harrison, D. (2009). Learning and development. London: CIPD. 4 ADDIE model: Develop The development stage involves constructing content and materials. The development stage involves the drafting, producing, and testing of learning materials. In the development stage, instructional designers need to select learning and development methods that are suitable for the proposed learning and development program. 5 ADDIE model: Implement The implementation stage involves delivering the learning and development programme. How manager can add value Enhance motivation Frame learning opportunity Demonstrate behavior Source: Kulik & Perry (2023), pp. 148-151. 6 Manager can help: Transfer of training Transfer of training: Using the knowledge, skills, and attitudes developed in training on the job. Maximize by: Support employees Opportunities to practice Performance feedback Follow up Source: Kulik & Perry (2023), pp. 152-155. 7 ADDIE model: Evaluation Analysis Develop Implement Evaluate Design Source: Goldstein, I. L., & Ford, J. K. (2002). Training in organizations: Needs assessment, development, and evaluation (4th ed.). Wadsworth/Thomson Learning. 8 Key takeaways The ADDIE model is an instructional design approach that helps organisations to provide learning and development programs that meet organizational goals. Managers have a critical role to play in maximizing the effectiveness of training. 9 Learning & Development Kirkpatrick’s training evaluation model RSM - a force for positive change Kirkpatrick’s model of training evaluation A structured approach to training evaluation Level 1 – Trainee Reactions How do trainees feel about the training, the curriculum, the training environment, and/or the instructor? Level 2 – Trainee Learning How does the training affect the trainees’ attitudes, knowledge, or skills on the job? Level 3 – Trainee Behavior Does the trainee use what was learned on the job? Level 4 – Results Does the training affect outcomes relevant to the organization, such as profit, customer satisfaction, absenteeism, and accident rates? Source: Kirkpatrick, D. L., & Kirkpatrick, J. D. (2006). Evaluating training programs: The four levels (3rd ed.). Berrett-Koehler. Kulik, C. T., & Perry, E. 3 L. (2023). Training and developing employees. In Human resources for the non-HR manager (2nd ed.). Routledge. Meet Emma CEO of Innovatex Growing firm Wants to evaluate Data Analytics training 4 Level 1 – Trainee Reactions Questions asked Responses How engaging did you find the Engaging training sessions? Relevance Was the training relevant to your Satisfaction role? Overall, how satisfied are you with Summary of written responses: the training program? “A bit too long” Open comment field “Could have been shorter” “Very interesting!” 5 Level 2 – Trainee Learning Pre-training quiz on key technical skills and company policies. Post-training quiz to measure improvement in the same areas. 6 Level 3 – Trainee Behavior Observe and take note of: Changes in behavior before and after the training Examples of application of skills and knowledge gained from the training in daily tasks 7 Level 4 – Results Project Completion Rate (%) Questions Posed: Before Training Project completion rates before and After Training 50% 60% 70% 80% 90% 100% after the training program. Customer Satisfaction Score Customer satisfaction scores from Before Training recent projects handled by new After Training hires. 1 2 3 4 5 Retention rates of new hires after six Retention Rate (%) months. Previous Year Current Year 0% 20% 40% 60% 80% 100% 8 9 Takeaways Kirkpatrick’s model of training evaluation can be used as a guide when measuring the impact of a training The model distinguishes four levels of measurement that are relevant when determining the impact of a training: Reaction, Learning, Behavior, and Results 10 Learning and development Trends RSM - a force for positive change Digital future? Mobile, social, and adaptive Mobile learning Learning by means of portable devices, such as smartphones. Currently, about 47% of organisations are leveraging mobile learning. More organizations are looking to provide accessible, engaging, bite-sized learning that is available anywhere and anytime. Social learning Learning through (digital) interactions with others (blogs, wikis, video chat). 59% of organizations use social learning, but only 24% say it is effective. Organizations are looking to adopt effective social learning strategies to foster collaboration, knowledge sharing, and a strong learning culture. Adaptive learning Learning through personalized programs. Use of data mining to put together individualized learning content. Organizations are looking to provide personalized learning that is responsive to a specific employee’s skill gaps, learning needs, and interests. Source: Cascio (2019). Training trends: Macro, micro, and policy issues. Human Resource Management Review, 29, 284-297; Wentworth & Lombardi (2014). 5 key 2 trends for the future of learning and development. HR Magazine. How Vodafone transformed their learning Source: https://www.youtube.com/watch?v=MPnENqchVDk; More information on how fuse supports social learning: 3 https://www.youtube.com/watch?v=XtGRXeyNJ5w. Key takeaways Digital transformation enables learning and development activities to become more learner-centred, by being more mobile, social, and adaptive. Vodafone has adopted “fuse” as a digital learning platform to enable sales employees to learn in mobile, social, and adaptive ways. 4 Reward Management Introduction RSM - a force for positive change Learning objectives Evaluate the importance of pay level from the perspective of attraction, retention and motivation. Describe three different approaches to developing pay structures. Examine the processes through which performance-related pay influences attraction, retention and motivation Evaluate which benefits organisations should offer in additional to those that they are legally obliged to. Evaluate whether pay should be secret (or transparent) depending on individual and structural factors. 3 Structure of this topic 1. Why is reward management important? 2. How do organizations develop pay structures? 3. Should we use financial incentives to motivate people to work harder? 4. What benefits should we offer in additional to those we are legally obliged to? 5. Should we encourage people to be open and transparent about their pay levels? 4 Reward Management Key concepts RSM - a force for positive change What are rewards? Financial and nonfinancial elements used to compensate employees for their time, effort and commitment. Base Pay Incentives Benefits Short-term Long-term Statutory Organizational Individual Profit-sharing bonusses plans Group bonusses Stock-options Nonmonetary Employee stock Source: Kulik & Perry (2023), pp. 205-238. rewards ownership plans 2 Why should we care about reward management? Legal and ethical Organizational goals responsibilities Attraction Retention