Professional Documents
Culture Documents
9–1
Performance Appraisal Methods
Appraisal Methodologies
9–2
Behaviorally Anchored Rating Scale
(BARS)
Developing a BARS Advantages of BARS
1. Generate critical • A more accurate gauge
incidents • Clearer standards
2. Develop performance • Feedback
dimensions
• Independent
3. Reallocate incidents dimensions
4. Scale the incidents • Consistency
5. Develop a final
instrument
9–3
Management by Objectives (MBO)
• A comprehensive and formal organizationwide goal-setting and
appraisal program requiring:
1. Setting of organization’s goals.
2. Setting of departmental goals.
3. Discussion of departmental goals.
4. Defining expected results (setting individual goals).
5. Conducting periodic performance reviews.
6. Providing performance feedback.
9–4
Using MBO
Setting unclear Time-consuming
objectives appraisal process
Problems with
MBO
Conflict with
subordinates over
objectives
9–5
Important Advantages and Disadvantages of Appraisal Tools
Alternation ranking Simple to use (but not as simple as Can cause disagreements among
graphic rating scales). Avoids central employees and may be unfair if all
tendency and other problems of employees are, in fact, excellent.
rating scales.
Forced distribution End up with a predetermined number Employees’ appraisal results depend
method or % of people in each group. on your choice of cutoff points.
Critical incident Helps specify what is “right” and Difficult to rate or rank employees
method “wrong” about the employee’s relative to one another.
performance; forces supervisor to
evaluate subordinates on an ongoing
basis.
9–6
The Collective Bargaining Process
• What Is Collective Bargaining?
• Both management and labor are required by law to negotiate
wages, hours, and terms and conditions of employment “in good
faith.”
• What Is Good Faith Bargaining?
• Both parties communicate and negotiate.
• They match proposals with counterproposals
in a reasonable effort to arrive at an agreement.
• Neither party can compel the other to agree to
a proposal or to make any specific concessions.
15–7
Key Components of International
Compensation
The area of international compensation is complex,
primarily because multinationals must cater to three
categories of employees:
• PCNs, TCNs and HCNs
• Key Components:
Base salary
Foreign services inducement
Hardship premium
Allowances
Benefits
8
Allowances
• Multinationals generally pay allowances in order to encourage
employees to take international assignments and to keep
employees ‘whole’ relative to home standards.
• Establishing an overall compensation policy can be very
challenging, partly because of the various forms of allowances,
such as:
• Cost-of-living allowance
• Housing allowance
• Relocation allowance
• Education allowance
• Home leave allowance
• Hardship allowance
9
Benefits
• In addition to the already discussed benefits, multinationals
also provide vacations and special leave.
• Annual home leave usually provides airfares for families to return to
their home countries.
• Rest and rehabilitation leave, based on the conditions of the host
country, may provide the employee’s family with airfares to a more
comfortable location near the host country.
• Emergency provisions are available in case of a death or illness in
the family.
• Employees in hardship locations often receive additional leave
expense payments or rest and rehabilitation periods.
10
Approaches to International
Compensation
There are two main options in the area of
international compensation
• Going Rate Approach (also referred to as the
Market Rate Approach)
• Balance Sheet Approach (also known as the
Build-up Approach).
11
Advantages and Disadvantages of
the Going Rate Approach
• Advantages • Disadvantages
• Equity withy local • Variation between
nationals assignments for same
• Simplicity employee
• Identification with • Variation between
host country expatriates of same
• Equity among nationality in
different nationalities different countries
• Potential re-entry
problems
12
Advantages and Disadvantages of
the Balance Sheet Approach
• Advantages: • Disadvantages:
• Equity • Can result in great
Between assignments disparities
Between Expatriates of • Between expatriates of
the same nationality different nationalities
• Facilitate re-entry • Between expatriates
and local nationals
• Easy to communicate to
employees • Can be complex to
administer
• May entail difficulty to
attract human capital
13
Mc Gregor’s Red Hot Stove Rule
19
Five Factors Important in International Assignee Success and Their Components
4–22
The Job Description
• Job Identification • Responsibilities and Duties
• Job title • Major responsibilities and
• FLSA status section duties (essential functions)
• Preparation date • Decision-making authority
• Preparer
• Direct supervision
• Job Summary
• Budgetary limitations
• General nature of the job
• Major functions/activities • Standards of Performance
• Relationships and Working Conditions
• Reports to: • What it takes to do the job
• Supervises: successfully
• Works with:
• Outside the company:
4–23
Job specification
• The job specification focuses on the person in answering Job Design:
the question, “What human traits and experience are From Specialized
required to do this job effectively?” to Enriched Jobs
• It shows what kind of person to recruit and for what
qualities you should test that person. The job specification
may be a section of the job description, or a separate • Job enlargement attempts to make work more
document. motivating by assigning workers additional same-
• Job specifications for trained employees focus on traits level activities.
like length of previous service, quality of relevant training,
and previous job performance. • Job rotation involves systematically moving workers
from one job to another.
• Job specifications can be based on the best judgments of
the common-sense experiences of supervisors and human • Job enrichment involves redesigning jobs in a way
resource managers. The basic procedure here is to ask, that increases the opportunities for the worker to
“What does it take in terms of education, intelligence, experience feelings of responsibility, achievement,
training, and the like to do this job well?” growth, and recognition.
• Basing job specifications on statistical analysis is more
defensible than the judgmental approach because equal
rights legislation forbids using traits that can’t be proved
to distinguish between high and low job performers.
Recruitment
• Employment or Personnel Planning
• The process of deciding what positions
the firm will have to fill, and how to fill
them.
• Succession Planning
• The process of deciding how to fill the
company’s most important executive
jobs.
• Career planning is the ongoing process where
you: Explore your interests and abilities;
Strategically plan your career goals; and.
Create your future work success by designing
learning and action plans to help you achieve
your goals.
Finding Internal Outside Sources of
Candidates Candidates
Hiring-from-Within
Tasks
5–26
COMPARISON OF TRADITIONAL CAREER
AND INCONSISTENT CAREER
Dimension Traditional Career Protean Career
Goal Promotions Psychological success
Salary increase
Psychological contract Security for commitment Employability for flexibility
Years on job Less than 2 years 2 – 10 years More than 10 years More than 10 years
THE CAREER MANAGEMENT PROCESS
Assessment Stage Investigation Stage Preparation Stage Commitment Stage Retention Stage
Key characteristics: Key characteristics: Key characteristics: Key characteristics: Key characteristics:
• Taking • Researching the • Gaining • Conducting a job • Providing first-
assessment world of work knowledge and search class customer
instruments • Conducting experience • Negotiating and service skills
• Working with a informational • Setting goals and accepting a job • Building a
career counselor interviews with adopting a offer professional
or career coach people in your success-oriented network
chosen field mind-set. Transition Stage
Key characteristics:
• Making career
changes
Plateauing means that the likelihood of the employee receiving • Developing
future job assignments with increased responsibility is low resiliency
6 Steps of HRP 4 Strategies of HRP
Assess current HR capacity
Forecast HR requirements
• Analysing Organizational Objectives Develop talent strategies
• Inventory of Present Human Resources Review and evaluation
• Forecasting Demand and Supply of Human Resource
• Estimating Manpower Gaps Walmart Strategies
• Formulating the Human Resource Action Plan
• Monitoring, Control and Feedback Forecasting
-Bottom-up approach: HR needs starting at lowest level (frontline)
-Trend analysis: future HR needs based on current needs
BENEFITS LIMITATIONS -Delphi method- expert opinion
Future needs/vacancies future is uncertain
Prevent surpluses or shortages:
Cost effective Sense of insecurity
- Sales performance analysis
Employee development Time consuming
- Turnover rate analysis
Training programs Expensive
- Gap analysis
Strategic decisions
To balance HR supply and demand:
- Changes in recruitment
- Changes in compensation
Training is a systematic process through which an organization’s human resources gain knowledge and develop
skills by instruction and practical activities that result in improved corporate performance.