Managing Human Resources

BBIT
Jan 2015

McGraw-Hill/Irwin

Copyright 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved.

8-1

Learning Outcomes
Describe the basic steps involved in
HR planning
Explain how companies use recruiting
to find qualified job applicants
Describe the selection techniques and
procedures that companies use
Describe how to determine training
needs and select the appropriate
training methods
8-2

Learning Outcomes
Discuss how to use performance
appraisal to give meaningful
feedback
Describe basic compensation
strategies and explain how they
affect HR practices
Discuss the four kinds of employee
separations
8-3

Determining Human
Resources Needs
Should we hire more workers?
Should we increase staff salary?
What kinds of training do we need for
our new staff? Whats the best way
to deliver them?

8-4

HR Process
Determining HR Need-HR Planning
Attracting Qualified EmployeesRecruiting & Selection
Developing Qualified EmployeesTraining & Performance Appraisal
Keeping Qualified EmployeesCompensation & Employee
Separation
8-5

HR Planning
Forecasting Demand and Supply
HR Information Systems

8-6

Forecasting Demand &

Supply

Internal Factors
New Positions
New Equipment
Terminations/Retirements
Turnover
Promotions

8-7

Forecasting Demand &

Supply
External Factors
-Demographic Labor
-Shift from manufacturing based to
service based
-Unemployment rates
-Labor Unions
-Availability of applicants with specific
skills
-Technological advances
8-8

HR Information Systems
(HRISs)
Computerised systems for gathering,
analysing, storing and disseminating
information related to attracting,
developing and keeping and qualified
workforce.

8-9

Common Data in HRIS

Personal Data
Work History
Performance Appraisal
Promotion Data
Educational Data
Company Employment History

8-10

Recruiting
The process of developing a pool of
qualified job applicants; internal and
external.
-Job Analysis
-Job Description
-Job Specifications

8-11

Selection
The process of gathering information
about job applicants to decide who
should be offered a job.
-Applications Forms and Resumes/CV
-References and Background Checks
-Selection Tests; aptitude test,
assessment centre
-Interviews
8-12

Training and Development

Developing the skills, experience and
knowledge employees need to perform
their jobs or improve their
performance
-Training Needs Analysis
-Training Methods
-Evaluations

8-13

MANAGING
EMPLOYEES
PERFORMANCE

McGraw-Hill/Irwin

Copyright 2011 by The McGraw-Hill Companies, Inc. All Rights Reserved.

8-14

Introduction
Performance Management

Processes used to
identify, encourage,
measure, evaluate,
improve, and reward
employee performance

Performance Appraisal

The process of evaluating

how well employees
perform their jobs and
then communicating that
information to the
employees

8-15

Uses of Performance Appraisals

8-16

Methods for Appraising

Performance

8-17

Comparative Methods

8-18

Forced Distribution on a Bell-Shaped

Curve

8-19

Category Rating Methods

Graphic Rating Scale

Checklists

Lists traits and

provides a rating
scale for each trait.

Uses a list of
statements or work
behaviors that are
checked by raters.

8-20

Example of a Graphic Rating Scale

8-21

Narrative Methods
Critical-Incident
Method
Based on
managers records
of specific
examples of the
employee acting in
ways that are either
effective or
ineffective.

Field
Review

Essay
Method

Manager
writes a short
essay
describing an
employees
performance.

Outside
reviewer
interviews the
manager
about the
performance
of each
employee and
develops a
rating for the
employees
from the
interview
notes.

8-22

Behavioral/Objective Methods
Behavioral Observation Scale (BOS)
The manager rates the frequency with
which the employee has exhibited the
behavior during the rating period.

8-23

Example of a Behavioral Observation

Scale (BOS)

8-24

Behavioral/Objective Methods
Management by Objectives (MBO)
Specifying the performance goals that an
individual and his manager agree to try to
attain within an appropriate length of
time.
These goals become the standards for
evaluating each employees performance.
8-25

Management by Objectives
Two Objectives for a Bank

8-26

Who Conducts Appraisals?

Manager and/or Supervisor

Appraisal done by an employees manager and reviewed by a
manager one level higher.

Self-Appraisal
Appraisal done by the employee being evaluated, generally on
an appraisal form completed by the employee prior to the
performance interview.

Subordinate Appraisal
Appraisal of a superior by an employee.

Peer Appraisal
Appraisal by fellow employees, compiled into a single profile
for use in an interview conducted by the employees manager.

Team Appraisal
Appraisal to evaluate the performance of the team as a whole.
8-27

Supervisory Ratings of
Subordinates
Traditional
Performance
Appraisal
Process

8-28

Multisource / 360 Degree

8-29

Common Rater Errors

8-30

Giving Performance Feedback

Scheduling Performance Feedback
Performance feedback should be regular.
Employees should receive feedback so often that they know what
the manager will say during their annual performance review.

Preparing for a Feedback Session

Managers should be prepared for each formal feedback session.
8-31

Giving Performance Feedback

[continued]
Conducting the Feedback Session
1.Tell-and-Sell managers tell employees their ratings and
then justify those ratings.
2.Tell-and-Listen managers tell employees their ratings and
then let the employees explain their side of the story.
3.Problem-Solving managers and employees work
together to solve performance problems.
8-32

Hints for Delivering an Effective performance

Appraisal

8-33

SOURCES OF INEFFECTIVE
PERFORMANCE
Organisation Policies &
Practices
Personal Problems
Job Concerns
External Factors

8-34

Managing Ineffective
Performance
Possible Courses of Action
Provide training to increase skills and
abilities
Transfer employee to another job or
department
Attention of actions to motivate
employee
Take disciplinary action
Discharge the employee
8-35