Human Resources Management Flashcards

Question

Evidence-based HR demonstrates ...

Answer 1

that human resource practices have a positive influence on the company’s bottom-line or key stakeholders (employees, customers, community, shareholders)

Answer 2

* Managers don’t read academic research * Managers turn to other HR professionals at work, SHRM website, other internet sites * Managers don’t feel very strongly about the usefulness and applicability of research findings

Answer 3

When an irrelevant 3rd option can influence how people decide between 2 viable options. This happens due to CONTEXT-DEPENDENT WEIGHTING (decoy and target candidate excel are given more weight in the final choice) and to DOMINANCE HEURISTIC (choosing dominating candidate allows the decision maker to avoid difficult trade- offs) - Decisions are hard. Relative Decisions are Easier - Be aware that presentation of choice sets can affect your judgment; an issue of systems not of individuals

Answer 4

when we attribute behaviors to traits and personality and discount the situational factors. Ex: if someone cuts you off on the road you think that’s because of who they are (bad person); we don’t usually think they might be speeding to the hospital (In reality, behavior is a product of both the personality and situational factors (i.e. Person-Situation Interactionist view) - Doing my job requires me to do more “extraverted” or “conscientious” behaviors - These behaviors are “rewarded” and the opposite is “punished” - Behaviors can be trained and learned - Don’t overrely on personality traits and selection)

Answer 5

Not only about performance evaluation but: Process through which managers ensure that employees’ activities and outputs (and behaviors) are congruent with the organization’s goals in order to maximize individual and, by extension, organizational performance.

Answer 6

Performance Management is a cyclical, never-ending process --> system Step 1: Define performance outcomes for company division and department - Ex: in a R&D department of a pharmaceutical company performance outcomes can be the number of patents filed for new drugs or the number of scientific discoveries converted into products and launched into the market Step 2: Develop employee goals, behavior, and actions to achieve outcomes – this helps to set individual expectations to be tied to organizational goals - Ex: the researches in the pharmaceutical company may be told that they need to set their personal work goals, specifying their own progress that they would like to see in perhaps three months until the rest of the year. In R&D it is typically collaborative team behaviors that help to advance scientific discoveries Step 3: Provide support and ongoing performance discussions – This should be frequent check-ins and being given the tools and help that is required to succeed (e.g. providing coaching and feedback aimed at helping employees to improve). These can also overlap with training and development issues Step 4: Evaluate performance – we are making judgments on how well an employee has performed relative to expectations. There are many approaches to evaluating performance. As this is a social judgement, biases and errors are bound to affect it and we will also explore those 5& 6 are noch chronological but next to each other Step 5: Identify improvements needed – employee performance should be measured and evaluated to inform talent decisions (e.g. should an employee be promoted or fired?). Part of these set of questions also concern how employee performance should be rewarded. This step also includes improvements needed to the performance management system: is this performance system working well? Step 6: Provide consequences for performance results

Answer 7

- Performance management is the broad collection of activities designed to maximize individual and, by extension, organizational performance. The purpose is to align individual efforts to achieve organizational goals.àSystem/Process that encompasses a broad collection of activities - Performance appraisal/evaluation: assessment of past performance within a given time frame, by completing rating tools/forms and having formal conversation between employee and manager to discuss the evaluation results.àone part of the performance management process o This aims to judge how well employees have performed relevant to expectations and to make a variety of talent and organizational decisions based on this information

Answer 8

360 degrees feedback: If everyone is providing feedback on you. This is a common and used tool in large organizations. Many companies use this for mix purposes (both development and administrative purposes), leading to it being misused. o Self-appraisal: individuals can evaluate themselves o Managerial appraisal: managers can evaluate individuals o Peer appraisal: your colleagues can give you feedback and appraisal o Individuals can also receive feedback from subordinates and others outside the organization (ex: clients and relevant stakeholders)

Answer 9

* Developmental use/function: geared toward improving employees’ performance and strengthening their job skills, through providing feedback, counseling on effective work behaviors, giving training and other learning opportunities, ... * Administrative use/function: whenever they are the basis for a decision about the employee’s work conditions, including promotions, termination, and rewards Consequence: An effective performance management system should: 1) in a 1st cycle run through improvements needed, and then (Steps 1-5) 2) in a 2nd cycle making the decisions and enacting consequences for performance results. (Step1-4+6)

Answer 10

Helper Vs Judge due to developmental function (improve employees skills) vs Administrative function (evaluate, promote/fire)

Answer 11

- Performance management is often not done well, resulting in a process perceived as time consuming, burdensome and failing to deliver value. ° “The performance management system does not reward high performance, deal effectively with poor performances nor motivate them to improve” ° “The process is too time-consuming and burdensome and it takes me away from “real work”” ° Executives also don’t trust performance ratings: “I don ́t believe that performance ratings are accurate reflections of performance. Using these ratings as basis of talent decisions is really difficult”

Answer 12

Comparative Approach Attribute Approach Results Approach Behavioural Approach

Answer 13

Requires the rater (= examinador) to compare an individual ́s performance with that of others (e.g.: ranking, forced distribution, paired comparison) - Categorize people into different grades of performance. Example: top, middle and bottom performers o High performers are rewarded; Low performers are given chances to improve (if no improvement, asked to leave) * Problems: 1) threatens teamwork; 2) encourages sabotage; 3) typically ignores middle performers --> You should only use this approach if within your company/unit there are huge discrepancies in performance and the job is something that doesn’t benefit from collaboration (jobs whose outputs are clearly individual)

Answer 14

- Extent to which individuals have certain attributes believed desirable for the company ́s success - Rate people on qualities - Benefits: easy for managers to come up with it - Problems: o Some of the qualities/attributes can be very ambiguous, leaving room for conscious or unconscious biases (inter-judge/integrated reliability) o Definitions of reliability and standards can differ dramatically across supervisors o Assessment of traits focuses on the person rather than on the performance, which can make employees defensive. This type of person-focused approach is not conducive for development.

Answer 15

- Managing the objective, measurable results of a job or work group - Using quantifiable, objective data to assess performance. Examples: Amount of sales ($, volume); client satisfaction, key performance indicators (KPI), ... * Problems: results can be affected by external or seasonal factors that are out of control of the employees, who have to be rated on these metrics. Ex: car seller is not able to sell cars due to the shortage of cars, as an aftermath of the pandemic; or he may sell more cars at the end of the year, when people receive their bonuses. * In order to gain acceptance of employees in using this approach, organizations should try to take into account those external factors (beyond employees’ control)

Answer 16

- Define the behaviors an employee must exhibit to be effective in the job (e.g.: critical incidents, behaviorally anchored rating scales (BARS), Behavioral Observation Scales (BOS)) - Building rating scales that are linked to clear definitions of behavior - Problem: this approach is tedious to develop because you need to cycle through a lot of incidents to come up with a comprehensive list of behaviors that are performance relevant - Benefits/Strengths: 1) High Validity and 2) Acceptance among employees in using this to assess performance Is usually very high. These are due to its congruence to performance and clarity in defining what performance is.

Answer 17

* Critical Incidents Technique. STEPS: 1) Identify key incidents representing performance issues (“What are some incidents in which performance was affected, positively or negatively?”) 2) Review key incidents and find out information about them (for instance, the context, behaviors, consequences, relevance to performance, ...) 3) Double-check with others (ex: supervisors, other employees, ...) 1) that the incidents represent one dimension of performance and 2) that the behavior is relevant to dimension a. If others don’t agree that this incident is about performance, then you discard the incident and the behaviors that don’t generate agreement 4) Using the incidents and behaviors that do generate agreement, then Build a scale to assess these performance-relevant behaviors

Answer 18

* Behaviorally Anchored Rating Scales (BARS): bring the benefits of qualitative and quantitative data to the employee assessment process. BARS compare a person's performance with concrete examples of behavior anchored in numerical assessments * Behavioral Observation Scales (BOS): process of identifying key tasks for a particular job, but the difference is that employees are scored according to how often they perform the behavior required for effective performance

Answer 19

Rater Responding Bias Rater Perceptual Bias Rater Social Bias Ratee Bias

Answer 20

Rater Responding Bias: originate from the rater in the way that they use the scales a) Leniency bias: people tend to use only the high end of the scale when rating others. Ex: classes where the professor only gives 18, 19, 20 b) Central tendency bias: there ́s a tendency to use only the middle part of the scale. Ex: using only 3 – “Neither agree or disagree” --> These 2 biases can happen when raters have continually existing work relationships with ratees (even after raters have submitted the ratings). Thus, raters tend to be neutral to avoid bad feelings.

Answer 21

a) Contrast effect: An average performance is rated much poorer when contrasted with an excellent performance. Similarly, an average performance is rated much better when contrasted with an extremely poor performance. Example: The group presentation before of yours was exceptional and your group’s presentation was averagely executed. But the audience rated you lower than average because of how the first group performed The order of what is presented affects the ratings: b) Recency effect: Items near the end of a sequence are the easiest to recall (the one that you have seen most recently) i) If we only have annual performance evaluations, most people will be affected by this, as the last 2 months of performance will be the ones most evaluated, rather than the whole 12 months. c) Primacy effects: The items at the beginning of a sequence are next easiest to recall. --> Items in the middle are the least likely to be remembered. Example: Your ratings for the course tend to be based on the class before the performance evaluation and the first class of the course. The middle parts are a blur.

Answer 22

a) 3.2. Halo effect: Tendency to rate favorably on one aspect because of a high rating on a different aspect. Ex: Because a person you are interviewing is good looking, you have a good perception of them regarding job performance/intelligence 3.3. Horns effect: Tendency to rate unfavorably on one aspect because of a low rating on a different aspect. Ex: Because a person you are interviewing is badly dressed, you infer that they probably are bad at the job 3.4. Similarity/Liking: Tendency to rate those who are similar to us/we like favorably. Ex: If the person you are interviewing belongs to the same football team as you, you will think of them more favorably b) Confirmatory bias: the tendency to search for, interpret, favor, and recall information in a way that affirms one's prior beliefs or hypotheses. Example: Manager A believes that subordinate B is hardworking. When making performance evaluations, the manager only remembers the months where his productivity is high. Also, manager thinks that B’s productivity is because of his hardworkingness and staying late at work (but this only happened a few times) - We tend to look for evidence that confirms our beliefs c) Implicit bias: happens outside of our control and we are unaware of it. It happens automatically when we make quick judgements and assessment of people/situations, influenced by our background, cultural environment and personal experiences i) The Implicit Association Test (IAT): measures implicit bias. Reaction times on the IAT indicate how much you implicitly associate one concept (ex: women) with another (ex: career). If the concepts are easily associated for you, then the reaction time is faster. Scores on the IAT correlate somewhat with people’s explicit associations. Even though we explicitly say we are not sexist, for instance, we still hold some subconscious implicit beliefs about career and gender. - This bias originates from the society where we live (thus, those living in the same society have the same beliefs, independently of gender/background), as since a very young age we are exposed to certain beliefs. Overtime, these beliefs start to operate at an automatic/unconscious level, influencing us! - Representation matters: the dominant ideas we have, even though it’s subconscious, it’s that successful businessman or scientists are men/white/look a certain way, ... - “Rate my Professor”: “brilliant”, “funny” most used for men; “nice”, “rude” and “unfair” for women o Male professors tend to be seen as more competent than women professors o Women professors tend to be evaluated with expectations of warmth and agreeableness (if they are strict, they’re a bitch)

Answer 23

Ratee Bias: Knowing the limits of your knowledge is real wisdom * Dunning-Kruger Effect / Unskilled and Unaware Effect: common effect in self-ratings. Cognitive bias in which people mistakenly assess their cognitive ability as greater than it is (not everyone does that!) Observations: ® “Better than average Effect”: Most people are saying they are better than the 50 percentile. Everybody thinks they are better than average. ® People who are objectively in the bottom quartile are greatly overestimation their performance, whereas people who are top performers are usually underestimating their performance Implication of Dunning-Kruger effect for managers: ° Poor performers are not able to see that they are performing poorly and thus Feedback for poor performance is crucial (show them what they are doing poorly and show how to do it better) o Whatshouldmanagersdo?ProvideAdditionaltrainingorcoaching ° Actual high performers may not be advertising their performance o Whatshouldmanagersdo?Spotlighttheirachievements

Answer 24

-Has consequences on SELECTION: Influences the kind of employees who are attracted to the organization - Has consequences on TURNOVER: determines who remains with the organization - Has MOTIVATIONAL consequences: is a powerful tool for aligning current employee ́s interests with those of the broader organization (because it explicitly says what kinds of behaviors and outcomes are rewarded)

Answer 25

-> Follow the 9-step process that guides determining base pay

Answer 26

STEP 1: Determine Pay Philosophy - The question that an organization should ask when doing this is: “What is the organization ́s goal or beliefs about compensation?” --> This should guide how everyone in the organization is paid - The key is to create a central philosophy and be consistent in its application regarding pay practices o Ex: a company can choose to have a “fair” repartition of salaries, and so everyone receives the same. OR, it can also choose a philosophy that says that the company is ultra-competitive and so salaries will reflect this philosophyàYou just need to be consistent: once you have a philosophy, apply it consistently and don’t apply it arbitrarily Consider market forces, in order to determine the pay philosophy: What is your strategy relatively to the market? Compared to your competitors, what should your salaries look like? -> Possible Strategies, considering market forces: 1. LEAD the market: Organization pays above market rate / more than its competitors. Purpose is to 1) gain personnel advantage or 2) attract talent away from competition 2. MATCH the market: Organization pays around market rate, similar to competitors 3. LAG BEHIND the market: Organization pays below market rate / less than its competitors. This can be: a. Not a conscious decision: i. Usually a misjudgment that needs to be corrected ii. Or could be a result of limited compensation budget b. Or a conscious decision: i. Only happens if this is a highly attractive organization and has a really attractive employer branding: employer branding is so attractive that they can afford to lag behind the market without any negative impact on recruitment and retention. Ex: interns compared to regular workers o Be super careful with this last strategy: Bad is greater than good. --> Prospect Theory (Kahneman & Tversky (1979)

Answer 27

By: Kahneman & Tversky In 1979 The orange dot refers to market rate: Saying that “bad is greater than good” means that dollar for dollar being under the market or having a bad or lower pay has a stronger deterrent or demotivational effect than the positive effect of paying above the market (so having a good pay).

Answer 28

Justification 1 The orange dot refers to market rate (Ursprung): Saying that “bad is greater than good” means that dollar for dollar being under the market or having a bad or lower pay has a stronger deterrent or demotivational effect than the positive effect of paying above the market (so having a good pay). - If the orange dot is pay at market rate: paid ONE DOLLAR MORE than market rate (+$1), then the perceived value is going to INCREASE TO 15 POINTS approximately (and we see that with the blue line on the top right corner of this grid). - But if you are paid OMNE DOLLAR LESS than market rate (-$1), then this leads to a DECREASE OF PERCEIVED VALIUE OF 40 (and we can see that on the bottom left part of the grid). --> Losses loom larger than gains. --> So, as an organization you must try your hardest never to pay under market, as people often reject low paying jobs (low offers) on the basis of pay alone, and don’t even consider other factors. Most concreete info you have of job Justification 2 The Ultimatum Game is a way that behavioral economics try to understand how people respond to being paid and receiving rewards. Research has shown that in these type of ultimatum games, people overwhelmingly reject low offers.

Answer 29

STEP 2: Conduct a Job Analysis - Recall: A job analysis is a process for gathering, documenting and analyzing information about a job to determine the activities and responsibilities it includes, its relative importance to other jobs, the qualifications necessary for performing the job and the conditions under which the work is performed.

Answer 30

STEP 3: Group jobs into job families - Once you ́ve done the job analysis you will have accurately developed job descriptions. With them, organizations should determine whether o They want to group the jobs into separate job families (each with their own pay grades)or o Have one pay grade system for all the positions throughout the organization Examples of job families: ° Very SIMILAR FUNCTIONS of jobs are grouped together in a family: Administrative job family, technical job family, management job family and executive job family ° Job families based on GEOGRAPHIC locations (different countries or regions) ° Job families based on DIFFERENT DIVISIONS (marketing is one division, strategy in other, communication in another – and then jobs that deal with those divisions could be grouped together)

Answer 31

STEP 4: Rank positions using job evaluation method - A Job Evaluation is the process of rank-ordering jobs – NOT THE PEOPLE in them – based on job content to demonstrate the relative worth and level of responsibility of all jobs to one another. - This is rank ordering of jobs, not the people in them and not about the performance. So, it is not the same as performance evaluation – It is about the job itself

Answer 32

- First, we want to Define Compensable Factors: o Compensable factors: job characteristics that the organization values and chooses to pay for. o Examples of compensable factors: knowledge skill requirements, responsibility, working conditions (ex: in a construction site there is some danger – undesirable working conditions), physical requirements (Is this a job who really requires your manual labor?) o There can be a difference in the maximum points to be achieved to give us an idea of relative importance and relative worth for the organization on these different factors - Then you rank it. Higher points --> higher compensation

Answer 33

STEP 5: Conduct Market Research - Once you get the idea of how many points a job might be worth, then you can benchmark it against Market Research and market data. - Ensures that wages are comparable to similar positions o consider that between different organizations, job titles can be very different, should read the descriptions of the job survey to make sure that the related tasks, functions and levels of responsibility match the positions at the organization. --> this kind of data is called the SALARY LINE (and you could buy these kinds of data from consulting companies). o To obtain current accurate salary information --> obtain information from more than one market survey resource. o other way of looking at market data is to look at professional organizations (ex: you want to hire engineers --> engineering association to see if the association conducts salary research). o never contact other competitors directly for compensation information o employer reported data are usually more reliable and trustworthy than employee provided salary information.

Answer 34

STEP 6 Create Job Grades STEP 7: Create Salary Range for each Job Grade - A conventional GRADED PAY STRUCTURE consists of sequence of job grades into which jobs of equivalent value are fitted: if 2 jobs are within the same grade, then they fluctuate around similar worth/value - Each grade has a PAY RANGE or BRAND, offering the employee scope for progression within his grade. - Graded pay structure places more significance on such factors as tenure and progression through organizational hierarchy o HOW LONG SOMEONE HAS BEEN IN THE ORGANIZATION hugely matters in this kind of pay structure - An employer can have as many/few pay grades as it wants. Usually, small startups/organizations may have only a few pay grades (2/3), while bigger institutions like governmental institutions may have more (as much as 15) - Each job family can have its own pay grades and pay ranges that are established independently from other job families. - OR: all job families can follow the same pay grades

Answer 35

- Each grade in a Graded Pay Structure has a PAY RANGE or BRAND, offering the employee scope for progression within his grade.

Answer 36

A conventional GRADED PAY STRUCTURE consists of sequence of job grades into which jobs of equivalent value are fitted: if 2 jobs are within the same grade, then they fluctuate around similar worth/value

Answer 37

STEP 8: Determine how to deal with salaries not within range (deal with salaries that are not within these ranges/bands we have decided on) What should we do when: * Salaries are below the minimum rate that the employer has established for the position’s salary range? --> Provide pay increases to match a minimum in the range (considering what we know about low offers) What should we do when: * * Salaries are above the maximum rate that has been established for the position’s salary range? --> Facilitate promotions into the next pay grade - Pay grade ranges will usually overlap - The more overlap, the more cost-effective it will be for career progression (for promoting someone into the next grade) - Less overlap will require a larger pay increase for internal promotions (when people switch to the next grade) --> Adjust fixed pay to a performance bonus (which is roughly equal to the amount of what the pay increase would have been) - This allows for the recognition of an employee’s outstanding performance without altering/increasing their base pay --> Restrict further salary increases by freezing pay -->Lowering an employee's base pay

Answer 38

--> Provide pay increases to match a minimum in the range (considering what we know about low offers)

Answer 39

--> Facilitate promotions into the next pay grade - Pay grade ranges will usually overlap - The more overlap, the more cost-effective it will be for career progression (for promoting someone into the next grade) - Less overlap will require a larger pay increase for internal promotions (when people switch to the next grade) --> Adjust fixed pay to a performance bonus (which is roughly equal to the amount of what the pay increase would have been) - This allows for the recognition of an employee’s outstanding performance without altering/increasing their base pay --> Restrict further salary increases by freezing pay -->Lowering an employee's base pay

Answer 40

STEP 9: Review and Update Pay (regularly) - Pay is NOT STATIC - It is affected by factors such as: EXTERNAL MAREKT and ECONOMIC ACTIVITY, which are always changing. (Ex: Disruption of Apps, gig-economy; Worldwide events that impact finances and the economy; Pandemics) - It’s important to keep these MACRO FACTORS in mind and to keep pay updated and relevant to the market

Answer 41

- There are different types of variable pay (top row): merit pay, incentive pay, profit sharing, ownership, gain sharing and skill-basedàVariable Pay determined with performance evaluation! - These different types of variable pay have different payment methods, different frequency of payout and are awarded based on different performance measures --> No variable pay is clearly best than the others. Companies can use a combination of all these variable pay. And most do so, to reward different aspects of performance

Answer 42

Individual Variable Pay Types: Merit pay, incentive pay and skill-based pay (unshaded cells) -> based on individual measures of performance;

Answer 43

Group Variable Pay Types: profit sharing, ownership and gain-sharing (shaded cells) -> pay depends on group/unit/organizational performance

Answer 44

Payment Method: Changes in Base Pay Frequency of Payout: Annually Performance Measures: Supervisors appraisal of individual performance Performance Motivation: Relationship between pay and performance varies Retention Mechanism: Over time, better performers are retained (relies on time to shape workforce) Culture that it fosters: Individual Competition Costs: Costs of a well- developed performance appraisal system Management Style: Some participation desirable Type of Work: Individual unless group appraisals done

Answer 45

Payment Method: Bonus Frequency of Payout: Weekly Performance Measures: Individual output, productivity, sales Performance Motivation: Clear Pay- Performance connection Retention Mechanism: Better performers retained (doesn’t require “time” element) Culture that it fosters: Individual Competition Costs: Efforts in setting and maintaining acceptable standards Management Style: Control Type of work: Stable, individual, easily measurable

Answer 46

Payment Method: Bonus Frequency of Payout: Smeiannually or Annually Performance Measures: COmpany profit Performance Motivation: Stronger in smaller firms Retention Mechanism: Retains all workers if plan pays out Culture that it fosters: Knowledge of business and cooperation Costs: Monetary costs in the organizations’ ability to pay out Management Style: Fits a participation style Type of work: All types

Answer 47

Payment Method: Equity Changes Frequency of Payout: When Stock Sold Performance Measures: Company Stock returns Performance Motivation: Stronger in smaller firms Retention Mechanism: can help lock in employees Culture that it fosters: Sense of ownership and cooperation Costs: Monetary costs in the organizations’ ability to pay out Management Style: Fits a participation style Type of work: All types

Answer 48

Payment Method: Bonus Frequency of Payout: Monthly or Quarterly Performance Measures: Production or controllable costs of stand-alone work unit Performance Motivation: Stronger in smaller Units Retention Mechanism: Retains all workers If plan pays out Culture that it fosters: Supports cooperation and problem solving Costs: Efforts in setting and maintaining acceptable standards Management Style: Fits a participation style Type of work: All types

Answer 49

Payment Method: Change in Base Pay Frequency of Payout: When Skill or competency acquired Performance Measures: Skill or competency acquisition of individuals Performance Motivation: Encourages learning Retention Mechanism: Attracts and retains learning-oriented employees Culture that it fosters: Learning and flexible organization Costs: Costs of training and certification (ensure standardization) Management Style: Fits participation Style Type of work: Significant skill depth or breadth - TO NOTE: Skill based pay is quite unique and does not follow a schedule for payout: it happens whenever a skill or competency is acquired. Ex: Nowadays, some Tech companies do this! o Assumption: these skills are built into job performance and once you learn them, you will naturally use them on the job and get more things done

Answer 50

Because different kind of people get attracted and retained--> helps to shape the culture of the organization: individual variable pay schemes foster a culture of competition group variable pay schemes foster cooperation o e.g. For skill-based, it tends to foster a learning and flexible type of organizational culture

Answer 51

Performance Motivation: 1. Merit pay --> people’s base pay is increased because of supervisors’ performance evaluation. But this doesn’t always have a strong pay performance relationship. VS Incentive pay --> people receive bonuses based on measurable results (for instance, output, productivity); and this has a much clearer pay-to-performance connection and really motivates people 2. Group dependent variable payments are more motivating when the unit is smaller: the bigger the team/company --> the more diffuse are the responsibilities, harder to see how one person’s effort can contribute to the entire collective. o The smaller the team, profit sharing, ownership and gain sharing become very motivating

Answer 52

Retention Mechanism: The retention mechanism of each variable payment is different: o merit pay relies on time to shape the workforce; o incentive pay does not require element of time (due to the frequency of payout) o Profit sharing and gain sharing retain workers only if the organization is able to payout people in the organization o Skill based variable pay attracts and retains learning oriented employees

Answer 53

They differ o Costs of merit pay rely on developing a rigorous performance appraisal system that accurately captures performance o Cost of incentive pay lies on setting and maintaining acceptable standards of productivity and results o For profit and ownerships ,because it is about paying large populations in the company at the same time, costs lie in the company’s financial ability to fulfil these payouts all at the same time o Skill-based variable pay has high costs in training and certification to ensure standardization of skills and ensure that employees really do have the skills they say they have just learnt

Answer 54

Management Style & Type of work - Management style: GROUP DEPENDENT variable pay typically fits more of a participation management style, but (?) people are asked to be involved in decision making INCENTIVE PAY works best under a controlling management style - Type of Work: In general, merit pay fits individual work. If the work is collaborative, then group appraisal should be used. o Incentive pay works best when the type of work is stable, individual and easily measurable. Ex: car manufacturing factories: the person that fits car glass into the car

Answer 55

Base Pay Variable Pay Indirect compensation/Benefits

Answer 56

- Usually refers to some kind of non-monetary compensation but it can also include some types of monetary compensation. Common Benefit Programs an organization can offer employees: * Social Insurance * Private Group Insurance * Retirement * Pay for time not worked. (Überstundenkompensierung - not monetary) * Family-Friendly Policies. Ex: extended health coverage, on-site child care, ... --> Benefits and perks are ways in which companies spend money on employees, but they don’t receive this spending in terms of money, but rather in terms of services or accommodations

Answer 57

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Answer 58

- Most people WILL NOT RATE PAY AS #1 importance for working in a job. The REASON for this is: o SOCIAL DESIRABILITY: we respond in a way that we think others will want us to o SOCIAL NORMS typically view money as a less noble source of motivation than other factors such as challenging work or work that changes the world or makes a contribution to society - BUT many large-scale studies and meta-analyses show that pay has theSTRONGEST EFFECTS on behaviors, because: o Pay is important because money is FUNGIBLE (we can use it to exchange for other things )and helps OBTAIN important other THINGS that we might want in our lives o We also want to make money because money is a symbol ofSOCIAL STATUS – Signals achievement -->People will not say that pay is #1 most important for working on a job, but pay isONE OF THE MOST IMPORTANT THINGS

Answer 59

--> Message of the video of Monkeys: Pay is important only when we can “compare” o COMPARE WITH OTHERS: Pay is more important in job choice when pay varies widely across employers than when pay is relatively more uniform (Rynes, Schwab, & Heneman, 1983) o COMPARE WITHIN OUR OWN COMPANY/ORGANIZATION: Pay will do little to motivate performancein systems where people receive similar pay increases regardless of individual or firm performance. However, dramatic changes in performance often occur when pay is made more contingent on performance o COMPARE WITH OUR PAST-SELVES: The salience or “importance” of pay is likely to rise after changes are made to pay systems (and our pay now is different from our pay in the past). Employees are particularly sensitive to pay cuts.

Answer 60

Equity Theory - Explains what is perceived as a fair exchange and it shapes a lot how we think whether an organization/employer/supervisor is treating us fairly or not - Employees compare their exchanges with their employer to exchanges with others - The reward/ effort ratio must be equal when compared to reward/ effort ration of others o I work for 2h and get $100 vs someone works only 1h and gets the same $100 -> I perceive it as unfair because the RATIO OF REWARD TO EFFORT is not the same Who are these others? o Insiders: People who are referents within the organization o Outsiders: People who are referents outside the organization

Answer 61

There are different types of equity to describe different situations around pay fairness: * External equity: Refers to whether the pay in this organization is fair compared to pay in other organizations * Internal equity: Refers to whether the pay for a job is fair is when compared to other jobs within the same company. o Ex: Is the sales manager's pay fair, when compared to the production manager’s pay? * Individual equity: Refers to whether pay of individual is fair compared to what co-workers are earning for the same or very similar within the company, based on each individual’s performance

Answer 62

Equity theory also makes predictions on people ́s behavior in response to fairness or unfairness. Whenever people perceive inequity/unfairness it really motivates to SEEK JUSTICE, and they can do so BY: * Increase or Decrease input * Increase or Decrease effort * Increase or Decrease outcomes (reward they get) * Sabotage others’ input or outcome

Answer 63

Negative but can be mitigate. Study has shown: Compare % of theft across different factories: ° Black: No pay cut -> 3%/4% of employee theftàbaseline of theft for the organization ° Blue: Pay cut with long sincere explanation ° Red: Pay cut with short insincere explanation -> During the pay cut, theft spiked the highest (8%) --> “When pay must be reduced or frozen, there is little a company can do or say to reduce employee dissatisfaction and dysfunctional behaviors”àFALSE: If pay has to be reduced or frozen, definitely there will be dissatisfaction and dysfunctional behaviors in reaction to that. Therefore, you should try to avoid reduce or freeze pay. But if it is unavoidable, there are things to do to mitigate this fallout!

Answer 64

Maybe pay isn ́t the most important factor to you right now, but as a manager you need to know that everyone is HYPER SENSITIVE to QUITY, CHANGES to PAY and PERCEIVED UNFAIRNESS. Thus, you must FORESIGHT what SITUATIONS will EVOKE this sense of unfairness. You should: o Never pay people under market rate, if you can o Take complaints about pay seriously o Realize that most of the best employees want strong pay-performance relationships. Evaluate your pay systems to see if you are actually rewarding the performance with the pay.

Answer 65

- Designing jobs with people’s mental capacity and limitations in mind - GOAL: Design jobs in a way to ensure that they don’t exceed people’s mental capabilities and limitations - IMPROVES RELIABILITY, SAFETY and user reactions by designing jobs to reduce their information- processing requirements - Example: In the US, turning left against traffic can be dangerous. Usually the odds of an accident occurring on a single left turn against traffic is small, but the consequences for UPS where drivers cover many millions of miles can be large. GPS devices on trucks were programmed so that algorithms plan routes that minimized left turns, preventing injuries and accidents due to driver errors and fuel costs.

Answer 66

Process of selecting individuals into an organization, in order to transform their individual inputs into desirable organizational outcomes

Answer 67

- Reliability - Validity - Utility - Legality

Answer 68

Refers to consistency of measurement, usually across time (by the same person) but also across judges Examples: ° Zero reliability: You step on a weighing scale three times in a row right now and each time it showed: 80kg, 100kg, 45kg (not consistent across time) ° Perfect reliability: The IQ test you did gives the same score every time you take it (consistent across time) ° Perfect inter-judge reliability: 5 different interviewers all judged you to have the same level of social skill. o Imperfect (or zero) inter-judge reliability: If they don’t agree and there’s a big difference between different judges’ judgement Methods always contain some error or “noise” or unreliability

Answer 69

Is the extent to which the technique measures the intended knowledge, skill, ability or other requirements (KSAOs) Diagram - Look at the picture in the script: ° Selection Method 2 > Selection Method 1 (Selection method 2 has more/a higher validity) ° Methods that are not valid (if they don’t capture nothing of the required KSAOs) are useless

Answer 70

* Content validity: Degree to which the content of the selection method is representative of job content. A test that is content valid is one that contains a fair sample of tasks and skills that are actually needed for the job in question.àhow well does selection method predict/ Reflect Job Content - Organizations can use selection methods that don’t really represent the job content, for instance, when they use tests inherited to them without considering the changing environment of the job. o Example: Applicants for a secretarial job take a typing speed and accuracy test. But let’s say that note-taking audio transcription software is now used at the company and the day-to-day responsibilities of secretaries don’t require much typing. --> low content validity. - Necessary but not sufficient (high content validity ≠ criterion-related validity) - Most organizations do a good job at this (the basis of job analysis) * Criterion-related validity: How well performance on a selection method predicts actual job performance-àhow well does selection method predict Job Performance o Predictive Validity: whether scores on a selection measure can predict/correlate with future job performance § Example: All job applicants now take an IQ test before joining the company. 12 months later, their score on the IQ test is compared with their performance evaluations. Correlations between test score and performance indicates predictive validity of the selection measure (i.e. IQ test). o Concurrent Validity: whether scores on a selection measure are related to job performance levels, when both are measured at roughly the same time § Example: The CEO of a cutting-edge tech company believes that humor is important: humor shows the ability to think out of the box and come up with innovative solutions. He tasks the HR team to design a selection method that measures applicant’s humor. They come up with a Humor-Intelligence High-fidelity Inventory (HIHI), and make all the employees take this test. Employees with high scores on the HIHI also have high performance evaluations (high concurrent validity). So, the company starts using the HIHI on future job applicants.

Answer 71

- Whether a selection method has validity or not is really about whether it correlates well or not with job performance Example: y-axis measuring job performance; x-axis measuring humor score --> Each dot represents an employee. - In this case, employees are all over the place and the best fit line is flat: it is not possible to guess if someone scores low/high on the humor score, what would their score in the performance score be -> Correlation of 0 - The higher the correlation, the lower uncertainty (more certainty) in predicting whether a high/low score on humor predicts a high/low score on performance - A negative value of correlation also creates some certainty

Answer 72

- Concurrent validity is easy and quick to determine, because you don’t need to wait between selecting someone and understanding if the selection method is predictive of the future; you can do it now, with current employees o But this can be problematic to apply if the current workers don’t represent current job applicants (future employees) - Predictive validity requires a large sample size for both selection and job performance scores to be available

Answer 73

- Ideally, we would hope that if a selection method reflects aspects of the job (high content validity), it will predict job performance (criterion-related validity). But in reality... ® Content Validity is necessary but not sufficient: high content validity may not predict criterion-related validity

Answer 74

° Tests that are not reliable cannot be valid (Ex: weighing scale example) ° Tests that are reliable may not be valid (Ex: IQ test example with perfect reliability. If we are looking to hire some musicians, using the IQ test, instead of their proficiency in playing a number of instruments, to select is not valid)

Answer 75

Refers to the practical economic value of a selection method Depends on its validity, but also on: 1. The COST (includes time, money, effort and cost of developing) of the selection method to develop and to administer. ° IQ test [low cost] Already exists; well-developed --> Approx 50 euros/candidate assessed VS Assessment centre [high cost]: Takes time for specialists to develop -> At least 500euros/candidate assessed 2. VARIABILITY of job performance: what do you expect people’s levels of performance would be in your applicant pool. The more variability, the more utility a selection tool has a. HIGH applicant pool variability: All applicants perform very differently (very differentiated output). It is important to hire the best performing applicantàthe utility of a selection method becomes very high b. LOW applicant pool variability: All applicants perform the same (ex: they are all very good). No utility of having a selection method. 3. SELECTION RATIO: ratio of the number of job positions to number of applicants a. High selection ratio (1): 1 applicant for 1 position --> the organization will hire all who apply for the job; no selection procedure has any practical value b. Low selection ratio (closer to 0): Many applicants for 1 position --> Organization will only hire the best applicants; large gains from the selection method

Answer 76

Ex: EU – Anti-discrimination Law Making hiring decisions, organizations must consider legality. Organizations should be careful that 1) the selection methods and criteria for hiring are not explicitly against a group of people and 2) nor should these methods and criteria systematically reduce the changes of specific groups of people from getting hired - Ex: Managers can’t hire someone based on the football team they support

Answer 77

1. Cognitive Ability Tests (or Intelligence Tests) (Verbal Comprehension, Reasoning ability) 2. Personality Tests 2.1 Big Five Personality Inventory 2.2 MBTI (Myers-Briggs Type Indicator) 2.3 Dark Triad 3. Integrity Tests 3.1 Overt 3.2 Personality-Oriented 3.3 Conditional Reasoning Test s 4. Interviews 4.1 Strcutured Interview 4.2 Unstructured Interview 4.3 Semi-Structured Interview 5. Reference and Letter of Recommendation 6. Work Sample Test 7. Others 7.1 Physical Ability Test 7.2 Language Proficiency Tests 7.3 Drug tests 7.4 Assessment Centers

Answer 78

Intelligence Tests (Verbal comprehension, reasoning ability) because : the more intelligent someone is, the more they are able to learn and the faster they will adapt. Can not directly measure intelligence but its subcomponents. General Factor - g Specific factor - s: - Verbal - Numerical - Reasoning - Deductive - Spatial s measures --> g When test not holistic enough (only verbal + numerical)can not really capture - Cognitive ability tests --> test-taking ability also matters (reading skill, education. background, practice effect) - Not all Cognac. ab. Tests are the same - Culture bond tests: General knowledge (e.g Us facts)--> disadvantage someone who ist not familiar (did not grow up in US - Culture free tests: Evaluates“g”byusingabstractrelationsunderlying“s ́s”.Doesn’trequire that much cultural knowledge - Correlation with job performance (0.51) moderate

Answer 79

Intelligence Tests (Verbal comprehension, reasoning ability) because : the more intelligent someone is, the more they are able to learn and the faster they will adapt. Can not directly measure intelligence but its subcomponents. General Factor - g Specific factor - s: - Verbal - Numerical - Reasoning - Deductive - Spatial s measures --> g When test not holistic enough (only verbal + numerical)can not really capture - Cognitive ability tests --> test-taking ability also matters (reading skill, education. background, practice effect) - Not all Cognac. ab. Tests are the same - Culture bond tests: General knowledge (e.g Us facts)--> disadvantage someone who ist not familiar (did not grow up in US - Culture free tests: Evaluates“g”byusingabstractrelationsunderlying“s ́s”.Doesn’trequire that much cultural knowledge - Correlation with job performance (0.51) moderate

Answer 80

2.1 Big Five Personality Inventory Well validated: Five personality “traits” derived through the lexical hypotheses and subsequent factor analysis ° Openness to new experiences (intellectual/imagination) ° Conscientiousness: tendency to be hard-working, diligent and pay attention to detail ° Extraversion ° Agreeableness ° Neuroticism (Reversed Emotional Stability) - 5 traits to universally quantify peoples personalities, reflect peoples characteristic patterns of thoughts, feelings and behaviors, Traits --> Spectrum - Have correlation with job performance: Overall low but the highest among is: Conscientiousness (+0,20) - but also depe depends on job (ex: Sales --> Conscientiousness + Extraversion) 2.2 MBTI (Myers-Briggs Type Indicator) - Based on Carl Jung’s conceptual theory about psychological types, developed by Katherine Cook Briggs and Isabel Briggs Myers - Many Fortune 100 use it for hiring or training sessions to help "understand" themselves or their colleagues - McKinsey associates often know their colleagues’ MBTI types by heart Problems: - Research partially widersprechen die Gegenüberstellungen ex: Thinkers vs Feelers - Week Reliability: After 5 weeks 50% changes - Predictive Validity: Results mixed and inconsistent - Used because Only gives positive results + description vague 2.3 Dark Triad Assess Narcissism, Psychopathy and Machiavellianism --> they increase levels of counterproductive workplace behaviour. - Generally, effects of the Dark Triad on Job Performance are negative. o Only Psychopathy and Machiavellianism --> effects on job performance (the higher --> lower the job performance) - Managers don’t only care about performance: don’t want employees to harm colleagues, clients nor the organization.

Answer 81

Overt: test aks about - attitudes toward theft - admission of theft and other wrongdoing Personality-oriented: Items about dependability, Conscientiousness, social conformity, thrill seeking, trouble with authority and hostility Conditional reasoning tests - 2 ambiguous situations and asked to make a choice between 2 possible interpretations - People different justification mechanisms depending on personality - can tell how aggressive my interpretation Faking and Coaching effect? - can improve result by faking and coaching - faking and coaching equally improve scores - Better to predict counterproductive work behaviors than predicting job performance (like Dark triad) (+0.41 vs -0.47)

Answer 82

- Structured Interviews - Unstructured Interviews - Semi-structured Interview

Answer 83

Structured Interviews - Clear criteria of questions to assess qualities in a candidate --> Correlation +0.51 - Unstructured might drift of towards things unrelated to job and relevant criteria --> correlation +0.38 might be useful at later stages to check on eg goof fit for companies team)

Answer 84

Reference List: List with references to contact you provide Letters of recommendation that others write for you, either 1) With your knowledge of the content or 2) Without your knowledge of the content Drawback: Often overwhelmingly positive --> become indistinguishable and redundant Improving the validity of these selection tools: - Content approach: Analyzing traits relevant for job - Move away from broad focus and concentrate on relevant job specific skills

Answer 85

For jobs that need a lot technical and practical expertise (asked to perform exact the task that is asked foreign position) - High reliability and validity -Correlation: +0.54

Answer 86

Cognitive Ability Tests + another * Base is the Cognitive Ability Test, because: 1) one of the highest predictive validities 2) one of the easiest to administer 3) one of the most validated 4) could be applied to different jobs (doesn’t have to be specific for a job) and to different levels of a job 1. Cogn. + Integrity test: +0.65 - ENtry/All 2.+ 3. Cogn. + structured interview: +0.63 Entry/All 2.+ 3.work sample: +0.63 - Non-entry 4. Cogn. + Conscientiousnes: +0.6 - no info

Answer 87

Perceptual Errors: Decoy Effect Social Desirability Social Perception Error Fundamental attribution error Halo effect Horns effect Similarity/Liking

Answer 88

DECOY EFFECT When an irrelevant 3rd option can influence how people decide between 2 viable options When asymmetric offerings make you buy something you did not want. Price-value ratio (S:2€, M:3,5, L:4€; Normally would pick M but as only 50ct more and much more might pick L)

Answer 89

DECOY EFFECT When an irrelevant 3rd option can influence how people decide between 2 viable options When asymmetric offerings make you buy something you did not want. Price-value ratio (S:2€, M:3,5, L:4€; Normally would pick M but as only 50ct more and much more might pick L)

Answer 90

We say what we think people want to hear. Small effects, but: - Male applicants tend to have higher social desirability than female applicants - Older applicants tend to have higher social desirability than younger applicants --> closer look

Answer 91

Fundamental attribution error - Attribute behaviors to traits and personality & discount the situational factors - Person-Situation Interactionist view: In reality, behavior is a product of both the personality and situational factors Halo effect Tendency to rate favorably on one aspect because of a high rating on a different aspect - interview someone: good looking --> good in job Horns effect Other way around - badly dressed -> bad at job Similarity/Liking Tendency to rate favorably who is similar to us - like same football team --> think of them favorably

Answer 92

Applicants’ perception that the test is relevant (and fair) for selection.

Answer 93

Normally, most applicants feel that (level of importance for selection): Interviews and work samples > cognitive ability tests > personality inventories, integrity tests and graphology Within selection process: - low face validity --> might not accept job, think will be unfair in future Other outside of process: Employer Branding: Recommend the employer to others. This limits the employer's access to the talent pool. * View the organization favorably: if process is seen as unfair, then the company is not positively seen * Affects applicants’ future intentions or purchase organization’s products

Answer 94

Normally, most applicants feel that (level of importance for selection): Interviews and work samples > cognitive ability tests > personality inventories, integrity tests and graphology Within selection process: - low face validity --> might not accept job, think will be unfair in future Other outside of process: Employer Branding: Recommend the employer to others. This limits the employer's access to the talent pool. * View the organization favorably: if process is seen as unfair, then the company is not positively seen * Affects applicants’ future intentions or purchase organization’s products

Answer 95

* You will be affected by them * You might have to execute them * You might have to design them

Answer 96

Policies, practices, and systems that influence Employees’ behavior: Organizational citizenship behavior, Turnover... Attitudes: Job Satisfaction, Turnover intentions, commitment to the organization and performance.

Answer 97

* Creating coherent planned frameworks for employees to be hired, managed and developed * These plans must support an organisation’s long-term goals * By bringing sustainable competitive advantage

Answer 98

High Strategic Value & High Uniqueness: Commitment- based HR configuration - Knowledge-based employment - "commitment" because you want them to stay, don't want brain drain - focus on developing internal talent High Strategic Value &Low Uniqueness: Productivity-based HR configuration - Job-based employment - Operationally important, no make differentiat - Bec. Performance important for known predeter. task Low strategic value & Low Uniqueness: - Compliance-Based HR configuration - Contractual work arrangement - One job-holder as good as other - Increase compliance & reduce costs Low Strategic Value & High Uniqueness: Collaborative-based HR configuration - (alliances/partnerships) - Ext. workers provide “non-resident knowledge intensive serv. to client firms” (e.g. R&D labs, legal consultants)

Answer 99

Commitment- based HR configuration - Knowledge-based employment - "commitment" because you want them to stay, don't want brain drain - focus on developing internal talent Job design: task variety, job rotation, decision making; job security; opportunity for employees to make changes in way they do their jobs Recruitment & Selection: Promotion from within; focus on selecting best candidates & their ability to contribute to strategic objectives; priority on potential to learn Training: Comprehensive; continuous; investment of time & money; aim to develop firm-specific skills;/knowledge Perf. Appraisal: Focus on contrib. to strategic objectives; incl. developmental feedback; emphasis employee learning Reward: Extensive benefits package; includes stock ownership; incentives for new ideas

Answer 100

Productivity-based HR configuration - Job-based employment - Operationally important, no make differentiat - Bec. Performance important for known predeter. task Job design: Jobs are standardised throughout industry Recruitment & Selection: Involves screening many candidates; comprehensive; uses many different sources Training: Emphasis on improving current job performance; emphasis on-the-job experience; seek to increase short-term productivity Performance Appraisal: Based on objective, quantifiable results; assesses quality and quantity of output; measures productivity and efficiency Reward: Straight salary; market rate; ensure equity with peers; individual, incentive/bonus component; value seniority

Answer 101

Compliance-Based HR configuration - Contractual work arrangement - One job-holder as good as other - Increase compliance & reduce costs Job Design: - Simple skills; well-defined jobs Training: Focus on compliance with rules Performance Appraisal: - Assess compliance with preset behaviors, procedures and standards Reward: - Hourly pay; focus on short-term perfrmance

Answer 102

Collaborative-based HR configuration (alliances/partnerships) - Ext. workers provide “non-resident knowledge intensive serv. to client firms” (e.g. R&D labs, legal consultants) Job design: Jobs designed around individual skills; job rotation Recruitment & Selection: Assesses industry knowledge and experience; emphasis on team working Training: Focus on team building Performance appraisal: Based on team performance; focus on ability to work with others Reward: Group-based incentives

Answer 103

Surveying 50+ top firms’ HR managers and direct supervisors, the researchers: * Validated the different HR configurations. * Firms don’t differ by HR configurations; jobs differ by HR configurations Translation: Companies are using different bundles of practices / systems to manage different types of jobs/employees

Answer 104

- Occupational role congruity/Übereinstimmung (i.e., degree to which a job is seen as being more suitable for men or women based on societal expectations and assumptions about gender roles) - Stereotype threat (i.e., how fear of confirming a group’s negative performance stereotype can lead a member of that group to underperform, such as women in leadership) - Expectancy bias (i.e., how group stereotypes lead to expectations about individual members of that group)

Answer 105

1) Training: planned effort to facilitate learning of job-related knowledge, skills & bahavior  Focus on bridging gaps for what is needed RIGHT NOW; 2) Development: Acquisition of know., skills, &behav. That improve employee’s ability to meet changes in job requ.& client demands  FUTURE orientation, what si needed in future; * As training continues to be more strategic  distinction will blur.

Answer 106

a) Investment in employees  Utiliarian function; b) Fullfillment of Psychological Contract: When fullfiled employees will reciprocate/erwidern. Perceived as fullfill unspoken obilgations pf providing development job opportunities, more challenging goals and them beingconcerened with well-being  Balanced employment relationship

Answer 107

*Reasons why often loose money 1) poorly designed & fails to transit required skills & knowledge; 2) Training not linked to performance problem or business strategy; 3) Outcomes not properly evaluated  poor training designs are not discovered & bad practices get perpetuated or inherited Training Design *Avoid pitfalls by following 6 Steps.

Answer 108

STAGE 1) Needs Assessment STAGE 2) Ensuring employees’ readiness for training STAGE 3) Creating a learning environment STAGE 4) – Ensuring transfer of training STAGE 5) Selecting training method STAGE 6) Evaluating Training Design

Answer 109

*Try to identify need for training “Can this be solved by training?” * Model: Reasons or “pressure points”; What is context?/Analysis; Outcomes. *1) Ex. of PRESSURE POINTS: a) Legal requirements or industry standards; b) Lack of basic skills & performance gaps; c) New technology or product  new procedures & knowledge; d) Changes in business like new customer requests, business expansion or contraction. * 2) 3 LEVELS OF ANALYSIS: a) Organizational Analysis (understand context & strategic relevance; appropriateness of training, resources available, support by managers & peers; b) Task Analysis: In what exactly is training needed? Identify knowledge, skills and behavior need to be emphasized to complete their tasks; c) Person Analysis: Who needs training? Is lack of performance cue to lack of knowledge/skills/ability (training issue) or is it motivational or work design problem? Are employees open/ready for training?; * Backward engineer important to check whether outcomes are achieved when designing training

Answer 110

*Try to identify need for training “Can this be solved by training?” * Model: Reasons or “pressure points”; What is context?/Analysis; Outcomes. *1) Ex. of PRESSURE POINTS: a) Legal requirements or industry standards; b) Lack of basic skills & performance gaps; c) New technology or product  new procedures & knowledge; d) Changes in business like new customer requests, business expansion or contraction. * 2) 3 LEVELS OF ANALYSIS: a) Organizational Analysis (understand context & strategic relevance; appropriateness of training, resources available, support by managers & peers; b) Task Analysis: In what exactly is training needed? Identify knowledge, skills and behavior need to be emphasized to complete their tasks; c) Person Analysis: Who needs training? Is lack of performance cue to lack of knowledge/skills/ability (training issue) or is it motivational or work design problem? Are employees open/ready for training?; * Backward engineer important to check whether outcomes are achieved when designing training

Answer 111

*Prepare enployees to be receptive. * 5 Aspects: 1) Self-efficacy – a) show training success of their peers; b) Highlight as opportunity to grow instead of incompetence; c) Communicate porpuse and activities in training; 2) Benefits of training – communicate realistic short-/long-term effects; 3) Raise awareness of training needs, career interests and goalsby a) why is it relevant; b) share perform. appraisal info; c) let self-evaluate; d) allow choice of training to attend; 4) Basic skills – make accessible to everyone who’s attending; a) ensure have prerequisite skills; b) Provide remedial training (for not advanced employees); c) Modify for basic skill levels; d) Use visual training methods; 5) Learning goal orientation – Safe learning environment to fail/make mistakes, deemphasize competition and highlight learning goal;

Answer 112

Factors that facilitate: a) Understanding objectives and outcomes; b) Meaningful content; c) Opportunities for practice; d) Feedback; e) Active & social learning; f) Coordination & administration/Physical learning environment (should be distratction free, comfortable, equipment, clear communication/orga);

Answer 113

*Work environment in which can use trained skills & behavior; * Factors that can help: a) Manager support; b) Peer support; c) Opportunity to use learned capability; d) Technological support (Learning Management System); e) Self management skills (*Set goals for use of skills * Identify conditions that may prevent the use * Monitor own use * Create own reward system*Be proactive for feedback); f) Surroundinhg HR practices that sustain & support training

Answer 114

*Work environment in which can use trained skills & behavior; * Factors that can help: a) Manager support; b) Peer support; c) Opportunity to use learned capability; d) Technological support (Learning Management System); e) Self management skills (*Set goals for use of skills * Identify conditions that may prevent the use * Monitor own use * Create own reward system*Be proactive for feedback); f) Surroundinhg HR practices that sustain & support training

Answer 115

1) Presentation methods (passive recipient of info); 2) Hands-on methods (actively involved); 3) Group methods (Methods to improve team effectiveness);

Answer 116

Effective or not?  quantify: * determine strength & weaknesses; * For whom is training beneficial; * Cost-benefit analysis; Reasons: * Costly for employee &Employer; * Alternatives – Other training, work redesign, better selection; METHODS TO GATHER EFFECTIVENES: a) Measure outcome pre & post-training; b) Measure between training & non-training groups; c) Cobination of both; For groups randomization is important (but unfair to deny training & need training)  Waitlist control; Longitudinal Data (measure after multiple trainings over time, each training should bring improvement)

Answer 117

Presentation Method Hands-on Method Group Methods

Answer 118

Useul for simple content, standardization desired, when failure has low-stakes consequences

Answer 119

a)On-the-job training (OJT): Learn from observing instructor and imitate; b) Apprenticeship: Mix of OJT & classroom training; c) Simulations : Real-life situation representation in training, with trainee’s decisions resulting in outcomes that mirror what would happen if it were done on the job; Recommendations – *Use when failure has weighty consequences (dangerous eg); *Use when High volume of trainees make impractical to provide training on-the-job; * Provide immediate feedback& must be realistic; d) Business games and case studies Takeaway: Method is suited for situations where learners have some prerequisite knowledge but could benefit from the applied nature of the training; e) Role play Recommendation *Incorporate chance for trainees to collectively reflect - Useful for content of a sensitive nature: reflection does not have consequences like embarrassment or failure; f) E-Learning /Gamification *Just-in-time content, * Concise info – show not tell, * Make it fun

Answer 120

*Research has shown groups perform better at tasks when trained together, * Everyone needs to be onboard *Keep in mind: Formal needs assessment, align to local conditions & context, diverse learning styles(Hybridization of training methods 1) Team building Learn about each other  get better at teamwork; 2) Adventure learning Similar to team-building but adventurous, physical tasks to build spirit; 3) Action learning Get actual business problem -> Combines goal of improving team dynamics + problem-solving approach using employee insights

Answer 121

Affective Outcomes Interviews, focus groups Cognitive Outcomes Knowledge; pencil-and -paper test or Work sample tests Skill-based outcomes Measures behavior or skills; Observation by manager, Work-sample tests, supervisor/peer ratings Results/How to Measure Performance metrics: less absent days after well-being training/ less accidents if that was goal ROI Measures economic value

Answer 122

1) poor design ; 2) not linked to problem or strategy; 3) Outcomes not evaluated

Answer 123

Formal approach used to ensure employees have desired qualifications and skills required in future

Answer 124

Traditional Career Sequence of positions usually within an organization Protean Career Based on self-direction with goal of psycho. success (Pride & accomplishment, self-determined) Value Strategic Value  Meet future HR needs in timely manner; Reciprocity  fulfillment of psychological contract which reduces turnover

Answer 125

Self-Assessment Employee-Ident. Opp to improve & Organ. role- Provide assessment; Reality Check Empl: What needs realistic do develop (get info job opp.) & Organ.: Give context of status quo (position in long-range plans, changes in industry etc) Goal Setting Comp: Ensure setted goal are SMART (Specific, Measurable, Attainable, Relevant, Timely), help to reach Action Planning Empl.: Steps&time table & Organ.: Resources for employee

Answer 126

A) Assessment 1) Personality Tests; 2) 360-degree feedback; 3) Assessment centers (Leaderless group discussion, Interview, In-basket, Role-play); - Reasons for Assessment: *Identify managerial pot. &measure strengths and weaknesses; * Potent. for higher levels; * general factors that inhibit team productivity; B) Formal Education Off-site/On-side programs specifically for companys employees (For high potential talent); C) Job Experience *Job Enlargement; *Job Rotation; * Transfer (lateral movement- job with similar responsibilities); *Promotion; *Expatriation (Transfer/Promotion to diff. geographical location; *Downward moves- less responsibility/authority (temporary cross-functional move); *Employee exchange ( swap between 2 comp.); *Sabbatical – space to regenerate and acquire new skills (more personal); *Volunteer assignemnts Interpersonal relationships *Mentoring: Usual but can also be a formal mentoring relationship (planned company effort)  gives all equal chance to benefit frm this;  Can provide Career Support or Psychological Support; Results: tend to have more promotions, salary, influence

Answer 127

simulation of administrative tasks of a manager ́s job

Answer 128

*Have looked at ALL from this paradign --> Has Assumptions: People don’t change very much; Jobs do not change very much; Job taks have specific attributes that people can match to; Match them; Others: Selection one way stream (orga  employee not other way); * In Career Development have to rethink as not wrong but limiting

Answer 129

*Look at value congruence (the more fit the better for organ. & employee; Assumptions *Choose company that fits to your values; *Selection not one-way Values are important because moderate relationship with performance, organizational citizenship behaviors, and turnover Remember *Recruiters look at Person-job (KSAOs) and person-organization(value congruence) fits; *Research:Authenticity is important for our well-being; * Leading reason for dissatisfaction  misalignment with personal values Understand Values *Look at Management; * Conversation with employees; *HR policies; *Reflect with yourself on values, mission, brand/prod, comfortable with pot. Colleagues, diversity?. Dark Side *Use as an excuse (SubjectiveBias)  Manger should not over consider & Applicant remember bit of diversity might be good

Answer 130

*Get role ftting values, goals AND offers opport. To learn and grow; * Stretch assignments (proj. that expand manag. skills and expert.) ;* Foster network of developmental relationships (not about knowing right people or fit with values but: *have good track record and credibility (have expertise &credibility; * Cyclical approach for lifetime

Human Resources Management Flashcards

(155 cards)