Human Resource Management – QTRE403 Chapter 1

OVERVIEW OF
HUMAN RESOURCE MANAGEMENT

Instructor: Vu Thi Dan Tra; Email: vuthidantra.cs2@[Link]

CONTENTS What is HRM?

1. Define HRM, SHRM and its contribution The policies, practices, and systems that
2. Identify the responsibilities of HR departments. influence employees’:
3. Describe typical careers in human resource management. ▪behavior
4. Summarize the types of skills needed for human resource ▪attitudes
management.
▪performance
5. Explain the role of supervisors in human resource
management.
6. Discuss ethical issues in human resource management.

Strategic HRM HRM contribution to an organization’s

performance
▪ provides a strategic framework to support
long-term business goals and outcomes
▪ The approach is concerned with longer-term
people issues and macro-concerns about structure,
quality, culture, values, commitment and matching
resources to future need.

ARMSTRONG, M and BARON, A. (2002) Strategic HRM: the key to improved business performance. Developing
practice. London: Chartered Institute of Personnel and Development. Slide 5
 At companies with effective HRM Human Capital
▪Employees and customers tend to be more an organization’s employees described in terms
satisfied. of their:
▪The companies tend to: ▪training
▪be more innovative ▪experience
▪have greater productivity
▪judgment
▪develop a more favorable reputation in the
community ▪intelligence
▪relationships
▪insight

Impact of HRM HRM and

Sustainable Competitive Advantage
▪An organization can succeed if it has
sustainable competitive advantage.
▪Human resources have the necessary qualities to
give organizations this advantage:
▪Human resources are valuable.
▪Human resources with needed skills and
knowledge are sometimes rare.
▪Human resources cannot be imitated.
▪Human resources have no good substitutes.

Responsibilities of HR Departments
What does HR do?
▪ HR covers a wide range of interconnected
activities, but essentially they’re all about
generating performance through people.
▪ HR professionals recruit, train and develop
employees, and look at how they get rewarded.
They’re dealing with legal issues, helping to shape
the culture of their organisations, and focusing on
what keeps their colleagues productive and
engaged.

CIPD (2013) HR Careers Guide London: CIPD

 Typical HR job titles... Typical Careers in HRM
HR Generalist HR Specialist
•HR Administrator / Assistant Specialism might be:
•HR Officer / Advisor
•HR Manager •Performance & Reward /
•Head of HR Compensation & Benefits
•Director of HR •Learning & Development
•Organisational Development
•HR Business Partner •Employee Relations
• Recruitment / Resourcing /
•HR Project Manager Talent Management
•HR Analyst • Employee Engagement /
Employee Communications

When working in HR...

Best things Worst things
Skills for HR to offer organisational insight
• an ‘access all areas’ pass into • Nobody notices when
the business everything is working well, only • Business savvy
• work on very high profile, when it isn’t
exciting projects • not very popular with people • Contextual savvy
• often know about things before outside of HR (everyone blames • Organisational savvy
anyone else HR!)
• can do it almost anywhere • tend to see the worst in people
(different sectors, countries, size • Managers will often hide behind
organisations) HR (“HR told me to do it”)
• often the first person people • a lot of frustrating process and
meet when they join an lots of meetings
organisation • emotionally draining
• Fantastic comradery within HR • People can be idiots... [Link] Slide 16

HR Roles of Supervisors Ethical issues in HRM

 CONTENTS
Human Resource Management – QTRE403 1. Elements of work-flow analysis.
2. How work-flow is related to an organization’s structure.
Chapter 2 3. Definition and significance of a job analysis
4. How to obtain information for a job analysis.
Analyzing Work and Designing Jobs
5. Recent trends in job analysis.
6. Methods for designing a job.
7. Approaches to designing a job to make it motivating.
8. How organizations apply ergonomics to design safe jobs.
9. How organizations can plan for the mental demands of a
Instructor: Vu Thi Dan Tra; Email: vuthidantra.cs2@[Link] job.

Work-Flow In Organizations Developing a Work-flow Analysis

Occupation A set of similar and related jobs Raw Inputs
- material
- information
Job A set of related duties
Equipment OUTPUT
ACTIVITY
- facilities - product/service
what tasks
- systems - how measured?
Position The set of duties performed by a particular person are required?
People
- knowledge
The separate activity with specific purpose performed - skills
Task/Duty by a particular person - abilities

Work-flow Design and Job Analysis

Organization’s Structure The process of getting
▪ The process of analyzing the tasks necessary for detailed information
the production of a product or service
about jobs
▪ Within an organization, units and individuals must
cooperate to create outputs.
▪ The organization’s structure brings together the
people who must collaborate to efficiently
produce the desired outputs.
▪Centralized
▪Decentralized
▪Functional
▪Product or Customer
 Job Descriptions Job Specifications
▪Job Description: a list of tasks, duties, and ▪Job Specification: a list of the knowledge, skills,
abilities, and other characteristics (KSAOs) that an
responsibilities (TDRs) that a particular job individual must have to perform a particular job.
entails. ▪Knowledge: factual or procedural information
necessary for successfully performing a task.
▪Key components:
▪Skill: an individual’s level of proficiency at
▪Job Title performing a particular task.
▪Brief description of the TDRs ▪Ability: a more general enduring capability that an
▪List of the essential duties with detailed individual possesses.
specifications of the tasks involved in carrying ▪Other Characteristics: job‐related licensing,
out each duty certifications, or personality traits.

Information collection methods The Importance of Job Analysis

Interv Work Redesign Performance

iew Appraisal

Critica Obser
l HR Planning Job Evaluation
-
Incide vatio
nts Informatio Job
n
n Analysis
collection Recruitment Career Planning
methods

Partici Quest
Selection Training and
pant ion- Development
Diary naire

Trends in Job Analysis Job Design

▪Organizations are being viewed as a field of ▪Job design: the process of defining how work will be
work needing to be done, rather than as a set performed and what tasks will be required in a given
series of jobs held by individuals. job.
▪“Dejobbing”– designing work by project rather ▪Job redesign: a similar process that involves
than jobs. changing an existing job design.
▪To design jobs effectively, a person must thoroughly
understand:
▪the job itself (through job analysis) and
▪its place in the units’ work flow (work flow analysis)
 Approaches to Job Design
Designing Efficient Jobs
Industrial Engineering: the study of jobs to find
the simplest way to structure work in order to
maximize efficiency.
▪ Reduces the complexity of work.
▪ Allows almost anyone to be trained quickly and
easily perform the job.
▪ Used for highly specialized and repetitive jobs.

Designing Jobs That Motivate: The Job Characteristics of a Motivating Job

Characteristics Model
▪ Skill variety - the extent to which a job requires a variety of skills to carry
out the tasks involved.
▪ Task identity –the degree to which a job requires completing a whole
piece of work from beginning to end.
▪ Task significance – the extent to which the job has an important impact
on the lives of other people.
▪ Autonomy - the degree to which the job allows an individual to make
decisions about the way work will be carried out.
▪ Feedback ‐ the extent to which a person receives clear information about
performance effectiveness from the work itself.

Designing Jobs that Motivate: Designing Jobs That Motivate:

Job Enlargement Job Enrichment
Job Job Job ▪ Empowering workers by adding more decision-
Enlargement Extension Rotation making authority to jobs.

Broadening the Enlarging jobs by Enlarging jobs by ▪ Individuals are motivated more by the intrinsic
types of tasks combining several moving employees aspects of work
performed in a relatively simple among several
job. jobs to form a job different jobs.
with a wider range
of employees
among several
different jobs.
 Designing Jobs That Motivate: Designing Jobs That Motivate:
Flexible Work Schedules
Self-Managing Work Teams
Flextime Job Sharing
▪Have authority for an entire work process or
segment: • A scheduling policy in • A work option in which
▪schedule work which full-time employees two part-time employees
▪hire team members may choose starting and carry out the tasks
ending times within associated with a single
▪resolve team performance problems guidelines specified by the job.
▪perform other duties traditionally handled by organization. • Enables an organization
management • A work schedule that allows to attract or retain valued
▪Team members motivated by autonomy, skill time for community and employees who want
variety, and task identity. family interests can be more time to attend
extremely motivating. school or take care of
family matters.

Designing Jobs That Motivate: Designing Ergonomic Jobs

Telework
▪ Ergonomics: the study of the interface between
▪ Telework: the broad term for doing one’s work away from individuals’ physiology and the characteristics of the
a centrally located office. physical work environment.
▪ Advantages to employers include: ▪ The goal is to minimize physical strain on the
▪less need for office space worker by structuring the physical work
▪greater flexibility to employees with special needs environment around the way the human body works.

▪ Easiest to implement for managerial, professional, or ▪ Redesigning work to make it more worker‐friendly
sales jobs. can lead to increased efficiencies.

▪ Difficult to set up for manufacturing workers.

Designing Jobs That Meet Mental

Human Resource Management – QTRE403
Capabilities and Limitations

▪ Work is designed to reduce the information processing Chapter 3

requirements of the job.
▪ Workers may be less likely to make mistakes or have Planning for Human Resources
accidents.
▪ Simpler jobs may be less motivating.
▪ Technology tools may be distracting employees from their
primary task resulting in increased mistakes and accidents.

Instructor: Vu Thi Dan Tra; Email: vuthidantra.cs2@[Link]

 CONTENTS Human Resource Planning
1. Discuss how to plan for human resources needed to carry
out the organization’s strategy. ▪ compares the present state of the organization
with its goals for the future
2. Determine the labor demand for workers in various job
categories. ▪ then identifies what changes it must make in its
human resources to meet those goals.
3. Summarize the advantages and disadvantages of ways to
eliminate a labor surplus and avoid a labor shortage.
=> meet business objectives and gain an
advantage over competitors.

Human Resource Planning Process Forecasting

Forecasting: The 3 major steps:
attempts to determine ⚫ Forecasting the
the supply of and
demand for labor
demand for various
types of human ⚫ Determining labor
resources to predict supply
areas within the ⚫ Determining labor
organization where there surplus or shortage
will be labor shortages
or surpluses.

Forecasting the Demand for Labor Determining Labor Supply

▪forecast whether the need for people with the ▪ Determining the internal labor supply: how many
necessary skills and experience will increase or people are currently in various job categories or have
decrease specific skills within the organization
Quantitative methods Qualitative methods ▪ then modifies this analysis to reflect changes expected
⚫ Trend analysis ⚫ Judgments of managers in the near future as a result of retirements, promotions,
transfers, voluntary turnover, and terminations
⚫ Regression analysis ⚫ Delphi method
⚫ Correlation analysis
 Determining Labor Supply Determining Labor Supply
Transitional Matrix 2 questions
A chart that lists job ⚫ Where did people who
categories held in one were in each job
period and shows the category go?
proportion of employees in ⚫ “Where did people now
each of those job in each job category
categories in a future come from?
period.

Determining Labor Surplus or Shortage Goal Setting and Strategic Planning

▪Based on the forecasts for labor demand and ▪The purpose of setting specific numerical goals is to
supply, the planner can compare the figures to focus attention on the problem and provide a basis
determine whether there will be a shortage or for measuring the organization’s success in
surplus of labor for each job category. addressing labor shortages and surpluses.
▪Determining expected shortages and surpluses ▪The goals should come directly from the analysis of
allows the organization to plan how to address labor supply and demand.
these challenges. ▪For each goal, the organization must choose one or
more human resource strategies.

Options for Reducing a Surplus Options for Avoiding a Shortage

Retraining Technological New external Turnover

Early Natural innovation hires reductions
retirement attrition

Hiring freeze Work sharing Transfers Retrained Outsourcing Temporary

transfers employees

Demotion Downsizing Overtime

Pay reduction
 Implementing and Evaluating the HR Plan
▪When implementing the HR strategy, the
organization must hold some individual accountable
for achieving the goals.
▪That person must also have the authority and
resources needed to accomplish those goals.
▪Regular progress reports should be issued.
▪The evaluation of results should not only look at the
actual numbers, but should also identify which parts
of the planning process contributed to success or
failure.

Applying HR Planning to Affirmative Action Human Resource Management – QTRE403

▪ Workforce Utilization Review: A comparison of the
proportion of employees in protected groups with the
proportion that each group represents in the relevant labor Chapter 4
market.
▪ The steps in a workforce utilization review are identical to
Recruitment and Selection
the steps in the HR planning process
▪ The organization must assess current utilization patterns,
then forecast how they are likely to change in the near
future.
▪ If the analyses forecast underutilization of certain groups,
then goals and a plan will be established.
Instructor: Vu Thi Dan Tra; Email: vuthidantra.cs2@[Link]

CONTENTS CONTENTS
1. Describe recruitment policies organizations use to make 6. Summarize the government’s requirements for employee
job vacancies more attractive. selection.
2. List and compare sources of job applicants. 7. Compare the common methods used for selecting human
resources.
3. Describe the recruiter’s role in the recruitment process,
including limits and opportunities. 8. Describe major types of employment tests.
4. Identify the elements of the selection process. 9. Discuss how to conduct effective interviews.
5. Define ways to measure the success of a selection 10. Explain how employers carry out the process of making
method. a selection decision.
 Recruiting Human Resources Three Aspects of Recruiting

▪ The role of human resource recruitment is to build a

supply of potential new hires that the Organization
can draw on if the need arises.
▪ Recruiting: any activity carried on by the
organization with the primary purpose of identifying
and attracting potential employees.

Personnel Policies Recruitment Sources - Internal Sources

decisions about how it will carry out human ▪Job Posting: The process of communicating
resource management, including how it will fill information about a job vacancy
job vacancies
▪on company bulletin boards
Internal versus Lead-the-market pay ▪in employee publications
strategies ▪on corporate intranets
external recruiting
▪anywhere else the organization communicates
with employees.
Employment-at-will Image advertising
policies

Recruitment Sources - Internal Sources

▪Advantages:
▪it generates applicants who are well known to the
organization. Four in Ten Positions Are Filled with
▪applicants are relatively knowledgeable about the Insiders
organization’s vacancies, which minimizes the
possibility they will have unrealistic expectations
about the job.
▪It is generally cheaper and faster than looking
outside the organization.
 Recruitment Sources - External Sources
Recruitment Sources - External Sources
Direct Referrals Advertisements
Applicants in Newspapers
and Magazines

Electronic Public
Recruiting Employment
Agencies

Colleges and Private

Universities Employment
Agencies

Evaluating the Quality of a Source

Yield Ratio Cost per Hire Results of a Hypothetical Recruiting Effort
• A ratio that expresses the • find the cost of using a
percentage of applicants particular recruitment
who successfully move source for a particular
from one stage of the type of vacancy.
recruitment and selection • divide that cost by the
process to the next. number of people hired to
• By comparing the yield fill that type of vacancy.
ratios of different • A low cost per hire means
recruitment sources, we can that the recruitment
determine which source is source is efficient
the best or most efficient
for the type of vacancy.

Recruits Who Were Offended by Recruiters

Recruiter Traits and Behaviors
Characteristics of the Recruiter

Behavior of the Recruiter

Enhancing the Recruiter’s Impact

 Personnel Selection Steps in the Selection Process
▪The process through which organizations make
decisions about who will or will not be allowed
to join the organization.
▪ Selection begins with the candidates identified
through recruitment.
▪ It attempts to reduce their number to the
individuals best qualified to perform the available
jobs.
▪ It ends with the selected individuals are placed in
jobs with the organization.

A Strategic Approach Criteria for Measuring the Effectiveness of

to Personnel Selection Selection Tools and Methods
▪Organizations should create a selection The method provides reliable information
process in support of its job descriptions.
▪The selection process should be set up in a The method provides valid information
way that it lets the organization identify people
who have the necessary KSAOs. The information can be generalized to
apply to the candidates
▪This kind of strategic approach to selection
requires ways to measure the effectiveness of The method offers high utility
the selection tools
The selection criteria are legal

Reliability Validity
▪ Reliability: the extent to which a measurement ▪The extent to which performance on a measure
is free from random error. (such as a test score) is related to what the
measure is designed to assess (such as job
▪A reliable measurement generates consistent
performance).
results.
▪Organizations use statistical tests to compare
results over time.
▪Correlation coefficients
▪A higher correlation coefficient signifies a greater
degree of reliability.
 Criterion-Related Validity Criterion-Related Validity
▪ Predictive validation: Research that uses the test scores of all applicants and
▪A measure of validity based on showing a looks for a relationship between the scores and future performance of the
substantial correlation between test scores and applicants who were hired.
job performance scores. ▪ Concurrent validation: Research that consists of administering a test to
people who currently hold a job, then comparing their scores to existing
▪ Two kinds of research are possible for arriving at measures of job performance.
criterion-related validity:
▪ Predictive validation
▪ Concurrent validation

Content and Construct Validity Legal Standards for Selection

▪ Content Validity: Consistency between the test items or problems and the ▪ All selection methods must conform to existing laws and legal precedents.
kinds of situations or problems that occur on the job.
▪ Construct Validity: Consistency between a high score on a test and high
level of a construct such as intelligence or leadership ability, as well as
between mastery of this construct and successful performance of the job.

Permissible Gathering Background Information

and
Impermissib
le Questions Application Résumés
for Forms
Applications
and
Interviews

References Background
Checks
 Application Forms Employment Tests
▪ A low-cost way to gather basic data from many applicants.
▪ Aptitude tests assess how well a person can learn or acquire
▪ It ensures that the organization has certain standard categories of skills and abilities.
information:
▪ Contact information
▪ Work experience
▪ Educational background ⚫ Achievement tests measure a person’s existing
▪ Technical experience knowledge and skills.
▪ Memberships in professional or trade group

Sources of Information Employment Tests and Work Samples

about Employment Tests

Five Major Personality Dimensions Rules for Administering Drug Tests

Measured by Personality Inventories ▪ Administer the tests systematically to all applicants for the same job.
▪ Use drug testing for jobs that involve safety hazards.
▪ Have a report of the results sent to the applicant, along with information
about how to appeal the results and be retested if appropriate.
▪ Respect applicants' privacy by conducting the tests in an environment that is
not intrusive and keeping results confidential.
 Interviews Interviewing Effectively
▪ Be prepared
▪ Assign responsibilities
▪ Put the applicant at ease
▪ Ask about past behaviors
▪ Figure out what your employees do, and ask questions that look for similar
behaviors
▪ At the end of the interview, make sure the candidate knows what to expect
next

Human Resource Management

Part 2: Acquiring, Training, and Developing Human Resources
How Organizations Select Employees
▪ Multiple-Hurdle Model: Process of arriving at a selection decision by
eliminating some candidates at each stage of the selection process.
▪ Compensatory Model: Process of arriving at a selection decision in which a
very high score on one type of assessment can make up for a low score on
another.
Chapter 5
Training
employees

Learning Objectives
Discuss how to link training programs to organizational needs.
Training Linked to Organizational Needs
Explain how to assess the need for training. • Training An organization’s planned efforts to help employees acquire job related
knowledge, skills, abilities, and behaviors, with the goal of applying these on the job.
Explain how to assess employees’ readiness for training

Describe how to plan an effective training program.

• A training program may range from formal classes to one-on-one mentoring, and it may
Compare widely used training methods. take place on the job or at remote locations. No matter what its form, training can benefit
the organization when it is linked to organizational needs and when it motivates
Summarize how to implement a successful training program. employees.
Evaluate the success of a training program.
•Learning Management System (LMS) A computer application that automates the
Describe training methods for employee orientation and diversity management.
administration, development, and delivery of training programs.

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 Training Linked to Organizational Needs:
Stages of Instructional Design
Needs assessment
• Needs Assessment The process of evaluating the organization, individual employees,
and employees’ tasks to determine what kinds of training, if any, are necessary.

• Three broad areas:

• 1. Organization—What is the context in which training will occur?

• 2. Person—Who needs training?

• 3. Task—What subjects should the training cover?

• Organization Analysis A process for determining the appropriateness of training by

evaluating the characteristics of the organization.

• Person Analysis A process of determining individuals’ needs and readiness for training.

• Task Analysis The process of identifying and analyzing tasks to be trained for.

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Needs Assessment Needs Assessment

• Organisational analysis • The person analysis is a process for determining individuals’ needs and readiness for
training. It involves answering several questions:
• The organization analysis looks at training needs in light of the organization’s strategy,
resources available for training, and management’s support for training activities. • • Do performance deficiencies result from a lack of knowledge, skill, or ability? (If so,
training is appropriate; if not, other solutions are more relevant.)
• Training needs will vary depending on whether the organization’s strategy is based on
growing or shrinking its personnel, whether it is seeking to serve a broad customer base • • Who needs training?
or focusing on the specific needs of a narrow market segment, and various other strategic
scenarios. • • Are these employees ready for training?

• Anyone planning a training program must consider whether the organization has the • - The answers to these questions help the manager identify whether training is
budget, time, and expertise for training. appropriate and which employees need training.

• Even if training fi ts the organization’s strategy and budget, it can be viable only if the • - The person analysis also should determine whether employees are ready to undergo
organization is willing to support the investment in training. training. In other words, the employees to receive training not only should require
additional knowledge and skill, but must be willing and able to learn.
• Managers appreciate training proposals with specific goals, timetables, budgets, and
methods for measuring success.

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Needs Assessment Readiness for Training

• - Task analysis is the process of identifying the tasks, knowledge, skills, and behaviors • Readiness for training is a combination of employee characteristics and positive work
that training should emphasize. environment that permit training. It exists when employees are able and eager to learn
and when their organizations encourage learning.
• - To carry out the task analysis, the HR professional looks at the conditions in which tasks
are performed. • Employee Readiness Characteristics: To be ready to learn, employees need basic
learning, especially cognitive ability.
• + These conditions include the equipment and environment of the job, time constraints (for
example, deadlines), safety considerations, and performance standards. • - Employees learn more from training programs when they are highly motivated to learn

• + These observations form the basis for a description of work activities, or the tasks • Work Environment:
required by the person’s job.
• Readiness for training also depends on two broad characteristics of the work environment
• - Task assessment must decide what levels of importance, frequency, and difficulty signal situational constraints and social support.
a need for training.
• Situational constraints are the limits on training’s effectiveness that arise from the situation
or the conditions within the organization. (e.g. money, time, tools, materials). Conversely,
trainees are likely to apply what they learn if the organization gives them opportunities to
use their new skills and if it rewards them for doing so.

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 Readiness for Training Planning the Training Program
• Social support refers to the ways the organization’s people encourage training, including • When the needs assessment indicates a need for training and employees are ready to
giving trainees praise and encouraging words, sharing information about participating in learn, the person responsible for training should plan a training program that directly
training programs, and expressing positive attitudes toward the organization’s training relates to the needs identified.
programs.
• Planning begins with establishing objectives for the training program. Based on those
objectives, the planner decides who will provide the training, what topics the training will
cover, what training methods to use, and how to evaluate the training.

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Planning the Training Program: Training Planning the Training Program: Training
objectives objectives
▪ - First, a training program based on clear objectives will be more focused and more likely • Effective training objectives have several characteristics:
to succeed.
• • They include a statement of what the employee is expected to do, the quality or level of
• - In addition, when trainers know the objectives, they can communicate them to the performance that is acceptable, and the conditions under which the employee is to apply
employees participating in the program. Employees learn best when they know what the what he or she learned (for instance, physical conditions, mental stresses, or equipment
training is supposed to accomplish. failure).

• - Finally, down the road, establishing objectives provides a basis for measuring whether • • They include performance standards that are measurable.
the program succeeded, as we will discuss later in this chapter.
• • They identify the resources needed to carry out the desired performance or outcome.
Successful training requires employees to learn but also employers to provide the
necessary resources.

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Planning the Training Program: In-house or Planning the Training Program: Choice of
contracted out? Training Methods
• Discussion: An organization can provide an effective training program, even if it lacks
expertise in training.

• - Many organizations use outside experts to develop and instruct training courses.

• - Many companies and consultants provide training services to organizations.

• - Community colleges often work with employers to train employees in a variety of skills.

• Even in organizations that send employees to outside training programs, someone in the
organization may be responsible for coordinating the overall training program. Called
training administration, this is typically the responsibility of a human resources
professional.

• Training administration includes activities before, during, and after training sessions.

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 Training methods Training methods
• - Instructor-led classrooms, online self-study, virtual classrooms, social media, mobile • Classroom instruction/ Audiovisual training/ Computer-based training
devices, and combinations of these methods.
• On the job training: Training methods in which a person with job experience and skill
• - Although the share of instruction provided online is growing, classroom training remains guides trainees in practicing job skills at the workplace.
the most popular of these methods
• Apprenticeship: A work-study training method that teaches job skills through a
combination of on-the-job training and classroom training.

• Internship On-the-job learning sponsored by an educational institution as a component of

an academic program.

• Simulations: A training method that represents a real-life situation, with trainees making
decisions resulting in outcomes that mirror what would happen on the job.

• Behavior modelling

• Experiential Programs Training programs in which participants learn concepts and apply
them by simulating behaviors involved and analyzing the activity, connecting it with
real-life situations. Adventure Learning A teamwork and leadership training program
based on the use of challenging, structured outdoor activities.

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Training methods Training methods

• Team training • Typical Jobs for Apprentices and Interns

• Cross-Training Team training in which team members understand and practice each
other’s skills so that they are prepared to step in and take another member’s place.

• Coordination Training Team training that teaches the team how to share information and
make decisions to obtain the best team performance.

• Team Leader Training Training in the skills necessary for effectively leading the
organization’s teams.

• Action learning Training in which teams get an actual problem, work on solving it and
commit to an action plan, and are accountable for carrying it out.

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Implementing the training program:

Implementing the training program Transfer of training
• Transfer of Training On-the-job use of knowledge, skills, and behaviors learned in
training.

• Social support: Communities of Practice Groups of employees who work together, learn
from each other, and develop a common understanding of how to get work accomplished.

• Social and technical support for transfer of training

• Training programs should prepare employees to self-manage their use of new skills and
behaviors on the job.

• Trainers also should support managers and peers in finding ways to reward employees for
applying what they learned.

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 Measuring Results of Training Applications of Training
• Evaluate the success of training program • Orientation: Training designed to prepare employees to perform their jobs effectively,
learn about their organization, and establish work relationships.

• Diversity Training: Training designed to change employee attitudes about diversity

and/or develop skills needed to work with a diverse workforce.

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Content of a Typical Orientation Program

Human Resource Management – QTRE403

Chapter 7 Managing Employees’

Performance

Instructor: Vu Thi Dan Tra; Email: vuthidantra.cs2@[Link]

FTU_HRM_Vu Thi Dan Tra

CONTENTS CONTENTS
1. Identify the activities involved in performance 6. Define types of rating errors, and explain how to
management. minimize them.
2. Discuss the purposes of performance management 7. Explain how to provide performance feedback
systems. effectively.
3. Define five criteria for measuring the effectiveness of a 8. Summarize ways to produce improvement in
performance management system. unsatisfactory performance.
4. Compare the major methods for measuring performance. 9. Discuss legal and ethical issues that affect performance
management.
5. Describe major sources of performance information in
terms of their advantages and disadvantages.
 Introduction
▪Performance Management: The process
through which managers ensure that ▪ Performance management is the process through which managers ensure that
employees’ activities and outputs contribute to employee activities and outputs are congruent with the organization's goals.
the organization’s goals. ▪ Performance Appraisal is the process through which an organization gets
information on how well an employee is doing his or her job.
▪This process requires ▪ Performance Feedback is the process of providing employees information
regarding their performance effectiveness.
▪knowing what activities and outputs are desired
▪observing whether they occur
▪providing feedback to help employees meet
expectations.
Foreign Trade University (HCM Campus)_Thanh toán Quốc tế_Vũ Thị Đan Trà 5

Employee Performance as a Process

PM process
Organisational
strategy

Business plans Training &

development
1. Planning 2. Managing 3. Reviewing
Talent
• Setting • Periodic
management
expectations and • Ongoing appraisal
objectives performance (annual?)
• Job or grade feedback, • Provide Reward
level behaviours coaching and feedback,
and interim reviews performance
competencies rating, and make Managing poor
formal this performance

Exit?
Adapted from Brewster et al (2011) p.191 7

Purposes of Performance Management Purposes of Performance Management

Discuss the purposes of performance management systems

▪Strategic Purpose - means effective performance

management helps the organization achieve its
business objectives.
Administrativ Strategic
e
Development
al
▪Administrative Purpose – refers to the ways in
which organizations use the system to provide
information for day‐to‐day decisions about salary,
benefits, and recognition programs.
▪Developmental Purpose – means that it serves as
a basis for developing employees’ knowledge and
skills.
8
Purposes of Performance Management
Discuss the purposes of performance management systems
Criteria for Effective Performance Management
Fit with strategy
Validity
Reliability
Acceptability
Specific feedback
10

Criteria for Effective Performance Management Contamination and Deficiency of a Job

Define five criteria for measuring the effectiveness of a performance management system.
Performance Measure
Strategic congruence

Validity

Reliability

12

Methods for Measuring Performance

▪ Outputs • Behaviours
▪ Targets • Skills
▪ Objectives • Competencies
 Basic Approaches to Performance Measurement
Measuring Performance: Making Comparisons

Simple Forced-Distrib Paired-Compa

Ranking ution rison
requires assigns a compares each
managers to certain employee with
rank employees percentage of each other
in their group employees to employee to
from the highest each category establish
performer to the in a set of rankings
poorest categories
performer.

Measuring Performance: Rating Individuals ‐ Example of a Graphic Rating Scale

Attributes

Graphic Rating Scale Mixed-Standard Scales

⚫ lists traits and provides ⚫ uses several statements

a rating scale for each describing each trait to
trait produce a final score
⚫ the employer uses the for that trait.
scale to indicate the
extent to which an
employee displays
each trait.

Measuring Performance: Rating Individuals ‐ Behaviors

Example Critical ‐ Incident Method Behaviorally Anchored
of a Rating Scale (BARS)
⚫ based on managers’ records ⚫ rates behavior in terms of a
Mixed-Sta of specific examples of the scale showing specific
ndard employee acting in ways that statements of behavior that
Scale are either effective or describe different levels of
ineffective performance
⚫ Employees receive feedback
about what they do well
and/or poorly and how they
are helping the organization
achieve its goals.
 Measuring Performance: Rating Individuals ‐ Behaviors
Example of Behavioral Observation Organizational Behavior
Task-BARS Scale (BOS) Modification (OBM)
Rating ⚫ A variation of a BARS which ⚫ A plan for managing the
Dimension: uses all behaviors necessary behavior of employees
Patrol Officer
for effective performance to through a formal system
rate performance at a task. of feedback and
⚫ A BOS also asks the manager reinforcement.
to rate the frequency with
which the employee has
exhibited the behavior during
the rating period.

Example of a Behavioral Observation Scale

Measuring Performance: Measuring Result
▪Management by Objectives (MBO): people at
each level of the organization set goals in a
process that flows from top to bottom, so that
all levels are contributing to the
organization’s overall goals.
▪These goals become the standards for
evaluating each employee’ s performance.

▪ Specific?
▪ Who: Who is involved?
▪ What: What do I want to accomplish?
▪ Where: Identify a location.
▪ When: Establish a time frame.
▪ Which: Identify requirements and constraints.
▪ Why: Specific reasons, purpose or benefits of accomplishing the goal.
▪ How: How to do it?

Foreign Trade University (HCM Campus)_Thanh toán Quốc tế_Vũ Thị Đan Trà 26 27
▪ Measurable? ▪ Timely?
▪ How much? ▪ A goal should be grounded within a time frame.
▪ How many?
▪ "Someday” and "by May 1st”
▪ How will I know when it is accomplished?
▪ …
▪ …
▪ Realistic?
▪ Attainable?
▪ Willing
▪ Develop the attitudes, abilities, skills, and financial capacity
▪ Begin seeing previously overlooked opportunities
▪ Able

▪ Plan your steps wisely and establish a time frame ▪ Believable

▪ … ▪ Similar

28 29

Planning Management by Objectives: Two Objectives for a Bank

▪ 5W – 1H – 5M – 2C
▪ 5 W: Why, What, Where, When, Who
▪ 1H: How
▪ 5M: Money. material, man, methods, machine
▪ 2C: check & control

30

Sources of Performance Information

Measuring Performance: Measuring Quality
▪360 Degree Performance Appraisal:
▪The principles of total quality management performance measurement that combines
(TQM), provide methods for performance information from the employees’:
measurement and management. ▪Managers
▪With TQM, performance measurement combines ▪Colleagues (within direct team or elsewhere)
measurements of attributes and results. ▪Subordinates
▪Subjective feedback ▪Self
▪Statistical quality control ▪Customers
▪180 degree
▪Feedback only from manager and colleagues
 Types of Performance Measurement Types of Performance Measurement
Rating Errors Rating Errors
▪Distributional errors: the rater tends to use only
▪Similar-to-me error: give higher performance one part of a rating scale.
ratings to employees perceived to be similar to
them in terms of attitudes, preferences, ▪Leniency: the reviewer rates everyone near the
top
personality, and demographic variables
including race and gender. ▪Strictness/Severity: the rater favors lower
rankings
▪Central tendency: the rater puts everyone near
▪Contrast errors: the rater compares an the middle of the scale
individual, not against an objective standard,
but against other employees.

Types of Performance Measurement Types of Performance Measurement

Rating Errors Rating Errors
▪Rater bias: raters often let their opinion of one
quality color their opinion of others. ▪Primacy error: performance evaluation is
influenced mainly by information collected
▪Halo error: when the bias is in a favorable. This during the initial phases of the review period.
can mistakenly tell employees they don’t need to
improve in any area.
▪Horns error: when the bias involves negative ▪Recency error: performance evaluation is
ratings. This can cause employees to feel influenced mainly by information gathered
frustrated and defensive. during the last portion of the review period.

Types of Performance Measurement Types of Performance Measurement

Rating Errors Rating Errors

▪First impression: raters make an initial favorable ▪Stereotype error: an oversimplified view of
or unfavorable judgment and ignore subsequent individuals based on group membership.
information not supporting the initial impression.

▪Attribution error: attribute poor performance to

▪Spillover: scores from previous review periods an employee’s dispositional tendencies instead
unjustly influence current ratings. of features of the situation.
 Giving Performance Feedback Giving Performance Feedback
▪Scheduling Performance Feedback ▪Conducting the Feedback Session
▪Performance feedback should be a regular, ▪During the feedback session, managers can
expected management activity. take any of three approaches:
▪Annual feedback is not enough.
1.“Tell-and-Sell” – managers tell employees their
▪Employees should receive feedback so often that ratings and then justify those ratings.
they know what the manager will say during their
annual performance review. 2.“Tell-and-Listen” – managers tell employees
their ratings and then let the employees explain
▪Preparing for a Feedback Session their side of the story.
▪Managers should be prepared for each formal
feedback session. 3.“Problem-Solving” –managers and employees
work together to solve performance problems.

Improving Performance Finding Solutions to Performance Problems

Summarize ways to produce improvement in unsatisfactory performance.

▪ Lack of ability: When a motivated employee lacks knowledge, skills, or abilities in some area,
the manager may offer coaching, training, and more detailed feedback. Sometimes it is
appropriate to restructure the job so the employee can handle it.
▪ Lack of motivation: Managers with an unmotivated employee can explore ways to
demonstrate that the employee is being treated fairly and rewarded adequately. The solution
may be as simple as more positive feedback (praise). Employees may need a referral for
counseling or help with stress management.
▪ Lack of both: Performance may improve if the manager directs the employee’s attention to the
significance of the problem by withholding rewards or providing specific feedback. If the
employee does not respond, the manager may have to demote or terminate the employee.

43

Legal and Ethical Issues in Legal Requirements for

Performance Management Performance Management
▪Legal ▪Lawsuits related to performance management
▪Performance management processes are often usually involve charges of:
scrutinized in cases of discrimination or ▪Discrimination
dismissal.
▪Unjust dismissal
▪Ethical
▪To protect against both kinds of lawsuits, it is
▪Employee monitoring via electronic devices and important to have a legally defensible
computers may raise concerns over employee performance management system.
privacy.
 Legal Requirements for Human Resource Management – QTRE403
Performance Management
▪ A legally defensible performance management system
includes:
▪Based on valid job analyses with requirements for job Chapter 7 Developing Employees
–Based on valid job analyses, with requirements for job
success clearly communicated to employees.
for Future Success
▪Performance measurement should evaluate behaviors or
results, rather than traits.
▪Multiple raters (including self-appraisals)should be used.
▪All performance ratings should be reviewed by upper-level
managers.
▪There should be an appeals mechanism for employees.
Instructor: Vu Thi Dan Tra; Email: vuthidantra.cs2@[Link]

Learning Objectives 6.1 Training, Development, and Career Management

▪ Discuss how development is related to training and careers.

▪ Identify the methods organizations use for employee development.

▪ Describe how organizations use assessment of personality type, work behaviors, and job performance to
plan employee development.

▪ Explain how job experiences can be used for developing skills.

▪ Summarize principles of successful mentoring programs.

▪ Tell how managers and peers develop employees through coaching.

▪ Identify the steps in the process of career management.

▪ Discuss how organizations are meeting the challenges of the “glass ceiling,” succession planning, and
dysfunctional managers.

6.1 Training, Development, and Career Management:

Development for Careers 6.2 Approaches to Employee Development

◆ Formal education
▪ Protean Career A career that frequently changes based on changes in the person’s
interests, abilities, and values and in the work environment. ◆ Assessment
◆ Myers-Briggs test
▪ A psychological contract is the set of expectations that employees and employers have
about each other. ◆ Assessment center
◆ Benchmarks
▪ psychological success is the feeling of pride and accomplishment that comes from
achieving life goals that are not limited to achievements at work. ◆ Performance appraisals
◆ Job experiences
◆ Interpersonal relationships
6.3 Approaches to Employee Development: Formal Education 6.3 Approaches to Employee Development: Assessment

▪ Assessment: Collecting information and providing feedback to employees about their

▪ Formal Education behavior, communication style, or skills.
▪ at the workplace or off-site. ▪ Information for assessment may come from the employees, their peers, managers, and
customers.
▪ by consultants or universities, university programs offered to employees
▪ lectures by business experts, business games and simulations, experiential programs, ▪ The purposes of assessment:
and meetings with customers ▪ Identify employees with managerial potential to measure current managers’ strengths and
▪ Training and development centers weaknesses.

▪ Classroom training and simulations ▪ Identify managers with potential to move into higher-level executive positions.

▪ Coaching ▪ Identify the strengths and weaknesses of individual team members and the effects of the team
members’ decision-making and communication styles on the team’s productivity.
▪ On campus: presentation, simulations, and case studies

6.3 Approaches to Employee Development: Assessment 6.3 Approaches to Employee Development: Assessment

▪ For assessment to support development, the information must be shared with the
employee being assessed. ▪ Assessment
▪ Along with that assessment information, the employee needs suggestions for ▪ Myers-Briggs test
correcting skill weaknesses and for using skills already learned.
▪ Assessment center
▪ The suggestions might be to participate in training courses or develop skills ▪ Benchmarks
through new job experiences.
▪ Performance appraisals
▪ Based on the assessment information and available development opportunities,
employees should develop action plans to guide their efforts at self-improvement.

6.3 Approaches to Employee Development: Assessment 6.3 Approaches to Employee Development: Assessment

▪ Psychological tests to measure employees’ skills, personality types, and

communication styles (Myers-Briggs test/ DiSC assessment) ▪ Assessment Centers At an assessment center, multiple raters or evaluators
(assessors) evaluate employees’ performance on a number of exercises.
▪ Myers-Briggs Type Indicator (MBTI) Psychological test that identifies individuals’
preferences for source of energy, means of information gathering, way of decision ▪ An assessment center is usually an offsite location such as a conference center. Usually
making, and lifestyle, providing information for team building and leadership 6 to 12 employees participate at one time. The primary use of assessment centers is to
development. identify whether employees have the personality characteristics, administrative skills,
and interpersonal skills needed for managerial jobs.
▪ DiSC Brand of assessment tool that identifies individuals’ behavioral patterns in terms of
dominance, influence, steadiness, and conscientiousness. ▪ The types of exercises used in assessment centers include leaderless group
discussions, interviews, in-baskets, and role-plays.

▪ Leaderless Group Discussion An assessment center exercise in which a team

of five to seven employees is assigned a problem and must work together to
solve it within a certain time period.
 6.3 Approaches to Employee Development: Assessment 6.3 Approaches to Employee Development: Assessment
▪ A performance appraisal, or formal process for measuring employee
performance, is a major component of performance management and also can be
▪ At an assessment center, multiple raters or evaluators evaluate employees’ performance useful for employee development under certain conditions.
on a number of exercises.
▪ Usually, off-site. ▪ The appraisal system must tell employees specifically about their performance
problems and ways to improve their performance.
▪ Types of exercises include:
▪ Leaderless group discussion ▪ Employees must gain a clear understanding of the differences between current
performance and expected performance.
▪ Interviews
▪ In-baskets ▪ The appraisal process must identify causes of the performance discrepancy and develop
plans for improving performance.
▪ Role plays
▪ Managers must be trained to deliver frequent performance feedback and must
monitor employees’ progress in carrying out their action plans.

6.3 Approaches to Employee Development: Assessment 6.4 Approaches to Employee Development: Job experiences

▪ Upward feedback is a performance appraisal process for managers that includes ▪ Job Experiences The combination of relationships, problems, demands, tasks,
subordinates’ evaluations. and other features of an employee’s jobs.
▪ 360 Degree Feedback is a performance appraisal system for managers that
includes evaluations from a wide range of persons who interact with the manager.

6.4 Approaches to Employee Development: Job experiences 6.4 Approaches to Employee Development: Job experiences

▪ Job enlargement refers to adding challenges and new responsibilities to employees’

current jobs.
▪ Job rotation involves providing employees with a series of job assignments in various
functional areas of the company or movement among jobs in a single functional area or
department.
▪ A transfer is usually a lateral move in which an employee is given a different job
assignment in a different area of the company.
▪ A downward move occurs when an employee is given a reduced level of responsibility
and authority.
▪ Promotion Assignment of an employee to a position with greater challenges, more
responsibility, and more authority than in the previous job, usually accompanied by a pay
increase.
6.4 Approaches to Employee Development: Job experiences 6.4 Approaches to Employee Development: Job experiences

▪ Job enlargement involves adding challenges or new responsibilities to

employees’ current jobs. ▪ Transfer Assignment of an employee to a position in a different area of the
company, usually in a lateral move.
▪ Examples include completing a special project, switching roles within a work ▪ Temporary Assignments with Other Organizations
team, or researching new ways to serve customers.
▪ Externship refers to a company allowing employees to take a full-time operational role
▪ Job rotation Another job design technique that can be applied to employee at another company.
development is job rotation, moving employees through a series of job ▪ Temporary assignments can include a sabbatical which is a leave of absence from the
assignments in one or more functional areas company to renew or develop skills.

6.5 Approaches to Employee Development: Interpersonal 6.5 Approaches to Employee Development: Interpersonal
relationships - Mentors relationships

▪ Mentor: An experienced, productive senior employee who helps develop a

less-experienced employee (a protégé). ▪ Benefits of Mentoring Relationships for Protégés
▪ Characteristics of Successful Mentoring Programs ▪ Career Support
▪ Coaching, protection, sponsorship, and providing challenging assignments, exposure, and
▪ Participation is voluntary visibility.
▪ Matching process if flexible ▪ Psychological support
▪ Mentors are chosen on ability and willingness ▪ Serving as a friend and role model, providing positive regard and acceptance, and creating an
outlet for a protégé to talk about anxieties and fears.
▪ Purpose is clearly understood
▪ Additional benefits
▪ Program length is specified
▪ Promotion, higher salaries, and greater influence.
▪ Minimum level of contact is specified
▪ Contact among participants is encouraged
▪ Program is evaluated
▪ Employee development is rewarded

6.6 Approaches to Employee Development: Interpersonal

relationships - Coaching
6.7 Systems for Career Management

▪ A coach is a peer or manager who works with an employee to motivate him, help him
develop skills, and provide reinforcement and feedback.

▪ Three roles a coach can play include:

▪ one-on-one
▪ help employee learn for himself or herself
▪ may involve providing resources such as mentors, courses, or job experiences
6.7 Systems for Career Management: Data gathering 6.7 Systems for Career Management

▪ Self-Assessment The use of information by employees to determine their career ▪ Figure 8.4 Steps in the Career Management Process, p.254
interests, values, aptitudes, behavioral tendencies, and development needs.
▪ Feedback Information employers give employees about their skills and knowledge and
where these assets fi t into the organization’s plans.
▪ Goal Setting: Based on the information from the self-assessment and reality check, the
employee sets short- and long-term career objectives. These goals usually involve one
or more of the following categories: desired positions, level of skill to apply, work setting,
skill acquisition.
▪ Action Planning and Follow-Up During the final step, employees prepare an action
plan for how they will achieve their short- and long-term career goals. The employee is
responsible for identifying the steps and timetable to reach the goals. The employer
should identify resources needed, including courses, work experiences, and
relationships. The employee and the manager should meet in the future to discuss
progress toward career goals.

Foreign Trade University (HCM Campus)_Thanh toán Quốc tế_Vũ Thị Đan Trà 25

6.8 Development-Related Challenges

▪ Glass Ceiling Circumstances resembling an invisible barrier that keep most

women and minorities from attaining the top jobs in organizations.
▪ Succession Planning The process of identifying and tracking high potential
employees who will be able to fill top management positions when they become
vacant. (Figure 8.6, p.259)
▪ Dysfunctional Managers: A manager who is otherwise competent may engage
in some behaviors that make him or her ineffective or oven “toxic” – someone
who stifles good ideas and drives away employees.