Chapter Three: DevelopmentOf Human Resources Socialization
A process of adoption Assumptions
− Better employee performance − Increased Organizational stability − Reduce new employee’s anxiety − Help learning
− Similar way of adjustment
Socialization Process Outcomes
The Purpose of New-Employee Orientation
Orientation may be done by the supervisor, the HRM staff or some combination Formal or informal, depending on the size of the organization
Covers such things as:
The organization’s objectives History
Philosophy Procedures Rules
HRM policies and benefits Fellow employees
Learning the Organization’s Culture
− Culture includes long-standing, often unwritten rules about what is appropriate behavior. − Socialized employees know how things are done, what matters, and which behaviors and perspectives are acceptable.
Employee Training
Employee training
a learning experience designed to achieve a relatively permanent change in an individual that will improve the ability to perform on the job.
Employee development
future-oriented training, focusing on the personal growth of the employee. Determining Training Needs
Training Methods
On the job training Off the job training Job rotation Classroom lectures Understudy assignment Films and videos
Vestibule training
Employee development Evaluating Training and Development Effectiveness
Methods Opinion and comments
Job rotation Performance based measure
Assistant to Position Post training performance measurement Committee assignment Pre-Post training performance measurement Lecture course and seminars Pre-Post training performance compared with
Simulations control group
Outdoor training Managing Careers
Traditionally, career development referred to programs offered by organizations to help employees advance within the organization.
Today, each individual must take responsibility for his or her career What is a Career?
− The sequence of position that a person has held over his or her work-life. − Pattern of work-related experiences that span the course of a person’s life. − Reflects any work, paid or unpaid.
− Broad definition helpful in today’s work environment where employees and organizations have diverse needs.
Career stages:
Exploration Establishment
Advice, examples, achievements, ambition and goals search for work Self assessment and educational path getting first job
Experience: internship getting evidence of “success” or “failure”
Mid-career Late career
Transfer / promotion Challenging job
Maximum productivity but Plateau progress Teaching others Becoming mentor Preparing retirement Self -improvement Threats and crisis
Decline
Preparation for retirement Rituals of retirement
Learning to accept reduced role Personal adjustments
Chapter Four: Employee Motivation Employee Motivation
− Performance Appraisal − Rewards and Compensation − Benefits
Performance Management system Purpose
− Performance Feedback − Performance Development − Documentation
Appraisal Methods: Three approaches:
− Absolute standards − Relative standards − Objectives Evaluating absolute standards:
An employee’s performance is measured against established standards. Evaluation is independent of any other employee.
Evaluating absolute standards:
Essay Appraisal: Appraiser writes narrative describing employee performance & suggestions.
Critical Incident Appraisal: Based on key behavior anecdotes illustrating effective or ineffective job performance.
Evaluating absolute standards:
Checklist Appraisal: Appraiser checks off behaviors that apply to the employee.
Adjective Rating Scale Appraisal: Appraiser rates employee on a number of job-related factors.
Forced-Choice Appraisal: Appraisers choose from sets of statements which appear to be equally favorable, the statement which best describes the employee.
Relative standards:
Employees are evaluated by comparing their performance to the performance of other employees. Relative standards:
− Group Order Ranking: Employees are placed in a classification reflecting their relative performance, such as “top one-fifth.”
− Individual Ranking: Employees are ranked from highest to lowest. Paired Comparison:
Each individual is compared to every other.
Final ranking is based on number of times the individual is preferred member in a pair. Relative standards:
Individual Ranking: Employees are ranked from highest to lowest. Paired Comparison:
− Each individual is compared to every other.
− Final ranking is based on number of times the individual is preferred member in a pair. Using Achieved Outcomes to Evaluate Employees:
Management by Objectives (MBO)
Includes mutual objective setting and evaluation based on the attainment of the specific objectives Using Achieved Outcomes to Evaluate Employees
Common elements in an MBO program are: Goal specificity
Participative decision making An explicit time period Performance feedback
Effectively increases employee performance and organizational productivity. Factors that can Distort Appraisals:
Effective Performance management System Rewards and Compensation
Behavior based measures People do what they do to satisfy some need and Combine Absolute and relative standards they look for a payoff or reward.
Provide ongoing feedback The most obvious reward is pay, but there are Have multiple raters many others, including:
Peer evaluation Promotions
360 degree appraisal Desirable work assignments
Rate selectively Peer recognition
Train appraisers Work freedom
Rewards:
Job Evaluation and the Pay Structure: Job Evaluation
Use of job analysis information to determine the relative value of each job in relation to all jobs within the organization. The ranking of jobs is done using following typical criteria: Also considers:
Mental requirements Labor market conditions
Supervisory control Collective bargaining
Complexity Individual skill differences
Physical demands Job Evaluation Methods
− Ordering method − Classification method − Point method
Pay Structure: Membership based compensation Establishing the Pay Structure
Wage curves
− Drawn by plotting job evaluation data (such as job points or grades) against pay rates (actual or from survey data).
Wage structure
− Designates pay ranges for groups of jobs which are similar in value to the organization and grouped by their classifications, grades or points.
Performance based Compensation: Individual Incentives include
Merit pay plans (annual increase, based on performance)
Piecework plans (pay based on number of units produced typically in a specified time period.) Group Incentives
Incentives can be offered to groups, rather than individuals, when employees' tasks are interdependent and require cooperation.
Profit sharing Gain sharing Competency-based compensation
Rewarded for skills, knowledge and behaviors −leadership
−problem solving −decision making −strategic planning Team-Based Compensation
Incentives for empowered work teams to exceed established goals and share equally in rewards. Depends on:
− Clarity of team purpose and goals
− Ability of the team to obtain needed resources − Effective team communication skills and trust Executive Compensation Programs:
Salaries of Top Managers
− Executive salaries, bonuses and stock options may seem high.
− Competition for executive talent raises the price of hiring an executive. − High salaries can be a motivator for executives and lower-level managers Supplemental Financial Compensation
− Deferred bonuses – paid to executives over extended time periods, to encourage them to stay with the company.
− Stock options – allow executives to purchase stock in the future at a fixed price.
− Hiring bonuses – compensate for the deferred compensation lost when leaving a former company.
Employee benefits
− Have grown in importance and variety
− Typically membership-based rewards offered to attract and keep employees
− Do not directly affect a worker’s performance, but inadequate benefits lead to employee dissatisfaction. Legally Required Benefits:
The Bangladesh Labor Act 2006 - Workers’ Compensation Paid by the employer
Paid for injuries and diseases caused at workplace which result in partial or total loss of earning capacity − Compensation rate : Permanent partial or total disablement or death
− Max. BDT 1,00,000 – 1,25,000 for adults − Max. BDT 10,000 for minor
− Payment is based on assessment of partial or total disability as specified in law max. 100% -min. 2% − Monthly wage can be paid to temporary disabled worker for max. 1 year or disability period whichever is shorter.
Paid leaves
− Casual leave - 10 days − Medical leave – 14 days
− Earned / annual leave - max. 27 , min. 13 days; accumulating − Festival holiday – 11 days
Voluntary Benefits
− Group insurance − Disability insurance Retirement Benefits:
Provident fund
− Fund accumulated throughout work-life
− Both worker and employer make equal contribution − Contribution should be 7-8% of basic wage Gratuity − 30 days’ wage for every completed year at workplace Pension Plan
− Government employees get pension till death after retirement
− Dependents of employees get pension till death if the employee dies before retirement Paid Time Off
Vacation and Holiday Leave
− Vacation time is usually related to the length of time on the job.
− Some companies also allow personal days that can be used for any reason. − Leave for preparation of retirement (LPR)
