HRM

use employee teams to solve unique & ocompley problems, enhance collaboraton among workers, improve morale & performance, amke most of scrace resources 

employee team --> group of individuals working together toward a common prurpose, members have compelemntary skills, work's mututally dependent, group has discretion over task it performs 

commonly used: cross-functional teams, self-directed teams, task-force teams, process-improvement teams, virtual teams 

appraisal interview --> most important part of performance appraisal process

opportunity to discuss performance record & explore areas of improvement & growth 

schedule it far enough in advance --> enough time to prepare

divide interview in 2 parts: performance review & growth plans 

3 types of interviews:

1. tell & sell interview

2. tell & listen interview

3. problem solving interview 

important points which should be considered during interview:

ask for self-assessment 

invite participation

express appreciation 

minimize criticism 

focus on solving problem

be open & supportive 

establish goals 

learnings --> implement feedback structure 

--> sources of ineffective performance: ability, motivation, environment 

1. key essentials of mgmt control systems, organizational justice & perfromance mgmt 

2. relate individual performance appraisal to organization wide performance mgmt process

3. identify a variety of appraisal methods

4. have skills necessary to use performance appraisal process as a positive enhancement to employee performance 

mgmt control system consists of 3 components:

1. input control --> WHO

2. behaviour control/proces control --> HOW

3. output control --> WHAT

knowledge, skills, abilities, values, motives

focus on person

trait methods --> competence model

competence model --> description of specific behaviours that can be observed when someone demonstrates a competency effectively, description of behaviours that are likely to occur when someone does not demonstrate a competency effectively 

process rules, behavioural norms 

how did person achieve results

behavioural methods --> critical incident, behavioural checklist, behaviourally anchored training scale 

critical incident --> unusual event that denotes superior or inferior employee performance, manager keeps logo or diary for each employee throughout appraisal period & notes specific critical incidents & how well they perform 

behavioural checklist --> not often used in practice

behaviourally anchored training scale (BARS) --> aims to combine benefits of narratives, critical incidents & quantifed ratings 

behaviour observation scale (BOS) --> evaluated according to how frequently they exhibit the reuqired behaviour for effective performance 

profits, customer satisfaction, production volumes 

what was outcome?

management by objectives (MbO)

MbO --> mgmt model that aims to improve performance of an organization by clearly defining obejctives that are agreed on by mgmt & employees

SMART objectives --> specific, measurable, attainable, relevant, timely 

distributive justice 

procedural justice 

interactional justice 

performance mgmt --> dynamic, continuous process, improves organizational effectiveness, strategic goals 

performance appraisal --> periodic event, formal review, last step in performance mgmt process

360 degree performance appraisal 

1. what is compensation

2. strategic compensationn 

way to increase employee loyalty 

consists of 3 components:

1. direct compensation

2. indirect compensation

3. nonfinancial compensation

enhances motivation & growth & aligns efforts with objectives of firm 

1. analysis of organizational objectives

2. deciding what types of behaviour & skills will be rewarded

3. compensation base most appropriate for types of jobs in company 

linking compensation to organizational objectives --> rewards on basis of inividual competencies or work contribution to organizational objectives

pay-for-performance standard --> managers tie compensation to employee effort perfomance

bases for compensation --> hourly work, piecework, salaried emplyees, nonexempt employees, exempt employees 

1. strategic reasons for incentive plans

2. incentive plans as link to organizational objectives

3. requirements for a successful incetive plan 

4. setting performance measures

also calles variable pay program

consist of bonuses, incentives or recognition

variable pay --> exercie fairness & equity, more flexible

pay for performance philosophy 

identify organisational metrics to measure performance 

customised incentive plan which measures output & rewards exceptional performance 

more likely to work in firm where morale is high, employees are treated fairly & there is harmony 

believe in it

2-way channels of comms

seen as a reward that must be earned through effort

involve employees --> fair

pay-out formula --> simple & understandable 

link btew performance & payout 

programs clearly communicated to employees 

continuous evaluation 

distinguish btw individual & group contribution

avoid biases, different personalities & political agends

measures --> quantitative, simple & structured

evaluate extent to which involvement of employees can influence measurement

commujnicate importance of established organizational goals 

1. factors influencing compensation

2. split of slaaries (fixed & variable part)

3. key questions for compensation decision

4. internal alignment 

4.1. jobs based --> job evaluation methods

4.2. person based --> skills & competencies, pay structure, range spread & midpoint progression

5. external competitiveness

6. employee contributions

7. mgmt

8. long term incentive plan (LTI)

9. SOP - stock option plan

comparison of input & output of yourself to others

external 

organizations

structure

objectives

internal alignment 

external competitiveness 

employee contributions 

mgmt 

job based 

person based  --> skills & competencies 

fair pay act --> women & men in same position should earn the same amount 

1. job analysis

2. job descriptions

3. job evaluation 

4. job structure 

1. classification --> job descriptions are slotted into a series of classes, each class has a definition, definitions are standards against which jobs are compared (but jobs are hard to classify)

2. ranking --> put all jobs in rank order of importance based upon their contributions towards achievement of organization's goals (highest job gets highest salary)

3. point method --> set of compensable factors that are identifies as determining the worst of jobs, job gets spliited & we compare certain factors, factors include: skill, responsibilities, effort, working conditions (accepted in court as part of fair pay act)

4. factor comparison --> jobs are compared against other jobs on basis of how much of some desired factor they possess, each job's factors are ranked against each other job's factors, market pay rate for each job is then allocated among factors based upon a market pay rate 

divided by skills & competencies 

skills: internal skill based structure -->

1. skill analysis

2. skill blocks

3. skill certification

4. skill-based structure

competency: internal competency-based structure-->

1. core competencies

2. competency sets 

3. behavioural descriptors 

4. competency-based structure 

what does market pay for a certain position

what do we pay

which grade is it in

pay ranges & range spreads 

size of grade --> range spread

midpoint --> midpoint (middle) of grade 

calculation range spread = range max - range min / range min x 100 =x%

calculation midpoint = midpoint of lower grade x midpoint differential + midpoint of lower grade 

calculation range spread around midpoint = range max - range midpoint / range midpoint 

how should total rewards be positioned against competitor?

current market situation --> dhapes competitiveness 

start with market analysis (external marketline) 

how much emphasis should there be on paying for performance?

how open & transparent sould pay decisions be to all employees?

share company's success with executives

long-term thinking

aligning executive interest with that of shareholders

attract & retain executives 

market based plans include: stock options, stock & appreciation rights, restricted stocks, phantom stocks 

pefromance based plans include: performance shares or units 

stock options represent a right granted to the optionee by the comapny to pruchase 

fixed number of shares

at a fixed price (strike price) per share 

over a specific period of time (as soon as options vest until expiration date)

by exercising options