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Human Resource Development Interventions

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Human resource development (HRD) is an essential function within a human resources management department (see Table 5-11). The nature of
the function and its scope are shaped by the organization's mission and its ability to maintain market share. McLagan defines it as "the
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development to improve individual, group , and organizational
effectiveness." [53] Many studies have identified roles, outputs, andAccept cookies for HRD professionals. [54]
competencies

Table 5-11: HUMAN RESOURCE

DEVELOPMENT INTERVENTIONS
COMPONENT OF THE HPT MODEL

Compensation and Benefits

Motivation (Incentives and Rewards)

Performance Appraisals

Assessment Centers and Competency Training

Succession Planning and Career Pathing

Leadership and Executive Development

Management and Supervisory Development

Literacy

Retirement Planning

Health and Wellness

The purpose of this section is to identify frequently used HRD interventions such as those in Table 5-11.

Employee Selection

Employee selection is choosing the right person for the job. The process begins with a precise description of the skills and/or knowledge,
experiences, and personal characteristics needed to accomplish the job tasks . Valuable sources for identification are knowledgeable people and
personal observations of competent performers. The selection process differs in complexity among organizations. Some fill positions quickly and
inexpensively by perusing resumes and application forms. Other organizations select potential employees by elaborate, and sometimes costly,
selection systems involving job- related tests, a series of interviews, and background checks [55] . Decisions regarding selection are crucial for
effective organizational performance.

Compensation and Benefits

Compensation programs are monetary and in-kind payments used by organizations. Goals of compensation policies include rewarding
employees' past performances, remaining competitive in the labor market, maintaining salary equity among employees, motivating employees'
future performances , maintaining the budget, attracting new employees, and reducing unnecessary turnover . [56] Compensation typically
includes pay for work and performance, disability income, deferred income, health, accident , and liability protection, loss-of-job-income, and
continuation of spousal income when there is a loss due to a employee's relocation.

Benefits are the non-cash portion of the compensation program that are intended to improve the quality of work life for an organization's
employees. Benefits include the employer's share of legally required payments (e.g., FICA, unemployment compensation, retirement and
savings plan payments, 401k, profit sharing, stock bonuses, medical benefit payments, etc.) [57] Benefits were once viewed as gifts from the
employer; they are now considered entitlements .

Motivation (Incentives and Rewards)

Incentives link pay with a standard of performance. They are future-oriented with the objective of inducing desired behavior. They can be short or
long term , and they can be tied to individual and/or group performance. There are variations in incentives. Monetary incentives include salary,
differential pay, allowances, time off with pay, deferred income, loss-of-job coverage, and other perquisites (product samples, an expense
account, tax service, legal service, a company apartment, club membership, free housing, parking privileges, stock bonus, etc.). Nonmonetary
incentives include desirable working conditions, training, and adequate equipment and materials. Examples of management incentives are
participatory goal setting and decision making, and career opportunities. [58]

Rewards can change and reinforce behavior. Skinner's research showed that rewarded behaviors are more likely to be repeated. Rewards need
to be timely , specific, and matched to the preferences of the person and the achievement of goals. [59] Rewards can be formal, such as public
recognition, gift certificates, etc., or informal such as field trips. Nelson has catalogued more than 1,000 ways to reward employees. [60] Wilson
suggests that rewards should be SMART: specific, meaningful, achievable, reliable, and timely. [61]

Performance Appraisals

Performance appraisals help individuals manage their performance by providing them with feedback. Organizations also have performance
appraisal programs that provide criteria for salary decisions, promotion, and improving job performance. Gohrman discusses the many potential
benefits of regular performance appraisal: increase in employee self-esteem and motivation to perform effectively, job clarification ,
communication between employee and rater, clearer organizational goals, and better human resource planning. [62] Morissey suggests that some
positive advantages of performance appraisals are increased probability of promotion for good performance, decreased likelihood of receiving
undesirable assignments, clear understanding of supervisor's expectations, and greater personal reward and recognition for meeting those
expectations. [63] He also sees benefits for the organization in reduced turnover, reduced liability for potential legal action, improved overall
productivity, improved organizational results, and greater attractiveness to potential new hires. Research suggests that the performance review
should be approximately 60 minutes long and conducted as a mutual discussion. [64]

Examples of performance appraisal methods used by organizations include checklists, weighted checklists, graphic rating scales, mixed scales,
forced-choice scales, and critical incidents (written descriptions of a highly effective or highly ineffective performance), and behaviorally anchored
rating scales (BARS). [65] The HRD literature is filled with positive techniques for conducting effective performance reviews. It also reports stories
of anxiety, frustration, uncertainty, and ambiguity when performance appraisals are handled improperly.

Assessment Centers and Competency Testing

An assessment center is "a place where standardized selection procedures are applied, usually to separate management from non-management
candidates and executive candidates from middle managers." [66] Candidates are evaluated and selected by testing mechanisms to determine if
they are capable of performing predetermined skills. Others see it as a process where trained professional evaluators observe, record, and
evaluate how a candidate performs in simulated job situations. [67] In- basket techniques, leaderless group discussions, role playing, and speech
making are common practices for testing job candidates.

It is important for an organization to study its jobs to identify and assign weights to the knowledge and skills each one requires. Testing people
for current job skills, or for attributes or skills needed for future performance, helps the organization fulfill its strategic goals for human resources.
Interviews, psychological profiles, intelligence testing, etc., are sometimes used in competency testing.

Succession Planning and Career "Pathing"

Succession planning is a systematic identification of employees for senior management positions. It involves long-term planning and is often
developmentally oriented. Succession planning is likely to involve input from several managers and recommendations for experiential
assignments to ensure the ability of the candidates to fill positions as they open . [68]

A career path is a sequence of jobs, usually involving related tasks and experiences, that employees move through over time. [69] For example, a
career path in a school setting may include the positions of teacher, counselor, department head, principal, central office administrator, and
superintendent. Career paths are generally vertical lines of progression; however, they can include horizontal assignments as well. This is
increasingly the case as management positions disappear.

Leadership and Executive Development

Leadership development is necessary at all levels of an organization. High-potential employees receive special training and experience that
translate into personal and professional growth. Leadership development includes coping with changes that occur during the life cycle of an
organization, from growth to decline. It is about changes in the external environment, specifically about rearranging priorities and overturning
assumptions about how the business operates and the role of leadership. [70]

Executive development deals with the organization's vision, values, and business strategies, and the goal is to develop leaders who can ensure
the strategic development of the organization. [71] Leadership and executive development are successful when the process is embedded in the
organization's HRD efforts.

Management and Supervisory Development

Management development is "the education, training, knowledge transfer, and, ultimately, skills demonstration of those individuals who are
defined as managers by their respective organizations." [72] It is about coping with complexity. Effective management development supports the
organization's mission, strategy, goals, objectives, and market position. Supervisory development is designed for front-line managers who work
with and through non-management employees to meet the objectives of the company and the needs of its employees. [73] It is broader than
management and executive development. Bittel and Newstrom state the unique roles the HRD and PT personnel play in supervisory
development as follows :

1.
Recognition of the innate qualifications, limitations, and aspirations of supervisors

2.
Genuine knowledge of specific competencies required to complete work assignments

3.
Sensitivity to the roles and relationships imposed on the supervisors by the company

4.
Realization of the continuing evolution of the supervisor's role [74]

Literacy

Literacy is a person's knowledge, especially one's reading and writing abilities , which enables the person to function in society. Literacy
programs are efforts by businesses to improve workplace communication, job understanding, and job skill development.

Literacy rates are often directly connected to quality of work and job performance. Raising the literacy skills of workers is likely to increase
productivity and lower production costs.

Retirement Planning

To have positive experiences in retirement, people must plan ahead. No longer is retirement looked at as withdrawal, retreat, and solitude .
Current gerontological thinking suggests new words for retirement: reorientation, recommitment, reinvention, reinvolvement, regeneration,
renewal, renovation, redirection, reinvestigation, replenishment, reexploration, and more. Retirement planning is usually part of a benefits
package. People want to know about finding part-time employment (should they want it), legal issues, housing arrangements, health and
wellness, etc. [75]

Health and Wellness

Health and wellness programs are commonly offered by organizations and can serve to enhance employee morale and productivity and to
reduce absentee rates and health care costs. According to the National Centers for Disease Control, more than 60 percent of all disease is
caused by lifestyle risks. The most powerful lifestyle risks are smoking, inattention to diet, lack of exercise, substance abuse, back problems,
mental distress, failure to use safety belts, and excessive stress. Employees who participate in workplace wellness programs tend to have better
attitudes and behavior, exhibiting more loyalty, enthusiasm , motivation, and energy. [76]

Case Study: Aetna Life and Casualty Co.

Aetna Life and Casualty is one of the world's leading providers of insurance and financial services to corporations, public and private institutions,
and individuals. Aetna ranks as the nation's largest stockholder-owned insurance and financial services organization. The company employs
about 47,000 people in the U.S.

Situation

The environment for insurance and financial services was becoming increasingly competitive and, some would say, even hostile . For that
reason, it was especially important that Aetna retain superior managers, with even stronger skills in areas such as problem solving and
decisionmaking, leadership, and building teams .

For the top 10 positions of the company, the longest tenure of any executive had been six and a half years . This turnover rate had resulted in a
diminished talent pool at lower levels. The company realized that many positions could not be easily filled from inside because of a lack of
internal breadth or depth of skill. As competition in the industry grew, strong managerial skills became more critical.

"Additional experience in the current job" was sometimes the extent of a manager's developmental plan. Job descriptions did not always focus
on the specific skills, knowledge, and behaviors required for success in a position. Development plans did not always focus on clear
measurement criteria as required to determine progress or success.

Without the identification of specific competencies and measurable development plans required for a job, Aetna realized filling management
positions would continue to be a problem. Additionally, the company realized that even those managers with good skills were not necessarily
adequately prepared for the future. Aetna also knew that it needed to ensure that people were participating in training to develop their skills and
to decrease performance gaps.

Intervention

Because Aetna already had a planning and direction-setting tool called the Aetna Management Process (AMP), it was applied to the
development planning process. AMP is a systematic, seven-stage planning and assessment process that clarifies the organization's critical
success factors, scans and describes the environment, recognizes gaps between current and desirable performance, sets objectives, develops
and implements action steps, and monitors performance.

Aetna executives decided to use performance technology to develop a comprehensive human resource response plan based on identified
competencies that would be needed in the future. Included in this systematic response were:

Identification of management competencies.

Development of processes to identify performance and competency gaps.

Creation of development plans and identification of education programs.

Design and publication of a development planning guide that would tie the process together for the entire organization.

This comprehensive program was also integrated into Aetna's interviewing and selection process, succession planning, and the rewards
systems. The resulting program enabled employees and management to identify work elements critical to success and to define the required
competencies. After determining the gap between current practices and desired proficiency, specific development and training plans were
designed, implemented, and monitored . Companywide implementation of this process is now under way.

Results

This initiative was first introduced only a few years ago, but preliminary results indicated that:

There were more focused and specific development plans for employees.

There was increased understanding by employees and their managers of how to implement and monitor these development plans.

More people were selecting training and education programs based on identified skill or knowledge gaps relative to specific competencies.

Corporatewide bench strength was improving and performance gaps were more clearly understood and actively worked on.

Focus on a person's competencies and development was now treated as serious business throughout Aetna. Additionally, the company began a
complete reorganization process. The new processes enabled the company to successfully redesign all of its jobs and redeploy people to those
jobs in less than one year.

Lessons Learned

1.
Performance technology is used to develop a comprehensive human resource response.

2.
A common language is now in use companywide.

3.
The focus is clearly on the mastery of competencies and development planning.

4.
All employees of an organization need to be trained, including those in leadership, managerial supervisory, and executive positions.

Deterline, W.A. and Rosenberg, M.J. Eds., (1992). Workplace productivity: Performance technology success stories. Washington, D.C.: NSPI,
pp. 5-6. Used with permission of the International Society for Performance Improvement .

Job Aid 5-10: HUMAN RESOURSE DEVELOPEMENT ”SKILLS SET

Directions: Assets and fill in the present and future skills-set necessary for an organization's personnel to maintain competitive strength.

ISPI 2000 Permission granted for unlimited duplication for noncommercial use.

Job Aid 5-11: RETIREMENT PLANNING ”DETERMINING NET WORTH

Directions: Complete the following worksheet. Discuss the results with a financial advisor.

ISPI 2000 Permission granted for unlimited duplication for noncommercial use.

Job Aid 5-12: RETIREMENT PLANNING ”MONTHLY INCOME/EXPENSES

Directions: Complete the following worksheet. Discuss the results with a financial advisor.

Expenses Now At Retirement

Mortgage or rent $____________ $____________

Utilities (phone, electric, gas, water) ____________ ____________

Food (meals at home and out) ____________ ____________

Clothing ____________ ____________

Transportation (gas, parking, bus fare) ____________ ____________

Medical/Dental Care ____________ ____________

Insurance Premiums

____________ ____________
Life

____________ ____________
Health

____________ ____________
Homeowners

____________ ____________
Automobile

Taxes

____________ ____________
Income

____________ ____________
Property

Entertainment/Recreation ____________ ____________

Charities ____________ ____________

Furnishings and Equipment for Home ____________ ____________

Personal/Miscellaneous

____________ ____________
Credit Cards

____________ ____________
Auto Loan

____________ ____________
Other Loans

Total Expenses $ ____________$ ____________

Income Now At Retirement

Salary (less taxes)$ ____________$ ____________

____________ ____________
Your own

____________ ____________
Your spouses

Commissions ____________ ____________

Bonuses

Interest ____________ ____________

____________ ____________
Savings account

____________ ____________
Other

Dividends ____________ ____________

Rental Property ____________ ____________

Social Security ____________ ____________

Pension Benefit ____________ ____________

Annuities ____________ ____________

Life Insurance ____________ ____________

Others ____________ ____________

Total Income $ ____________$ ____________

Total Expenses - ____________ - ____________

Difference $ ____________$ ____________

ISPI 2000 Permission granted for unlimited duplication for noncommercial use.

[53] McLagan, 1989, p. 53

[54] McLagan, 1989, p. 77

[55] Leibler and Parkman, 1992

[56] Sherman, Bohlander, and Snell, 1996

[57] Sherman, Bohlander, and Snell, 1996

[58] Kemmerer and Thiagarajan, 1992

[59] Nelson, 1994

[60] Nelson, 1994

[61] Wilson, 1995

[62] Gohrman, 1989

[63] Morrissey, 1983

[64] Kirkpatrick, 1986

[65] Anthony, Perrewe, and Kacmar, 1996

[66] Leibler and Parkman, 1992, p. 270

[67] HR Measurements , 1993

[68] Harris, 1997

[69] Walker, 1976

[70] Conover, 1996

[71] Wertz, 1996

[72] Brewington, 1996, p. 638

[73] Prokopenko and Bittel, 1981

[74] Bittel and Newstrom, 1996, p. 676

[75] Riekse and Holstege, 1996

[76] Harris and DeSimone, 1998, pp. 323 “330

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Fundamentals of Performance Technology: A Guide to Improving People, Process, and

Performance
ISBN: 1890289086 Year: 2004 Authors: Darlene M. Van Tiem,
BUY ON AMAZON
EAN: 2147483647 Pages: 98 James L. Moseley,
Joan Conway Dessinger

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