Chapter 15 Performance Appraisal and Reward Systems.docx
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Chapter 15 Performance Appraisal and Reward Systems.docx
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Chapter15PerformanceAppraisalandRewardSystems
CHAPTER15–HUMANRESOURCEPOLICIESANDPRACTICES
CHAPTEROBJECTIVES
Afterreadingthischapter,studentsshouldbeableto:
1.Describejobsforwhichinterviewsareeffectiveselectiondevices.
2.Listtheadvantagesofperformance-simulationtestsoverwrittentests.
3.Identifyfourtypesofemployeetraining.
4.Contrasttheorganization’sresponsibilitiestodayforcareerdevelopmentwiththeemployeesresponsibilities.
5.Identifytheadvantagesofusingbehaviorsratherthantraitsinappraisingperformance.
6.Explainthemostpopularperformanceappraisalcriteria.
7.Identifywho,inadditiontotheboss,candoperformanceevaluations.
8.Explainactionsthatcanimprovetheperformanceappraisalprocess.
LECTUREOUTLINE
I.EMPLOYEESELECTION(ppt4)
A.Thethreemostimportantselectiondevicesareinterviews,writtentests,andperformancesimulationtests.
B.Interviews
1.Ofalltheselectiondevicesthatorganizationsusetodifferentiatejobcandidates,theinterviewcontinuestobetheonemostfrequentlyused.
2.Italsoseemstocarryagreatdealofweight;theresultstendtohaveadisproportionateamountofinfluenceontheselectiondecision.
3.Theunstructuredinterview—shortinduration,casual,andmadeupofrandomquestions—hasbeenproventobeanineffectiveselectiondevice.(ppt5)
4.Byhavinginterviewersuseastandardizedsetofquestions,providinginterviewerswithauniformmethodofrecordinginformation,andstandardizingtheratingoftheapplicant’squalifications,thevariabilityinresultsacrossapplicantsisreducedandthevalidityoftheinterviewisgreatlyenhanced.
5.Evidenceindicatesthatinterviewsaremostvaluableforassessinganapplicant’sintelligence,levelofmotivation,andinterpersonalskills.
C.WrittenTests(ppt6)
1.Typicalwrittentestsassessintelligence,aptitude,ability,interests,andintegrity.
2.Testsinintellectualability,spatialandmechanicalability,perceptualaccuracy,andmotorabilityhaveshowntobemoderatelyvalidpredictors.
3.Asethicalproblemshaveincreasedinorganizations,integritytestshavegainedpopularity.
a)Theevidenceisimpressivethatthesetestsarepowerfulinpredictingsupervisoryratingsofjobperformanceandcounterproductivebehavioronthejob.
D.PerformanceSimulationTests(ppt7)
1.Thelogicofperformancesimulationtestsiswhatbetterwaytofindoutifanapplicantcandothejobsuccessfully.
2.Performancesimulationtestshaveincreasedinpopularityduringthepasttwodecades.
3.Twobest-knownperformancesimulationtestsare:
a)Worksampling—hands-onsimulationsofpartorallofthejobthatmustbeperformed
(1)Worksamplesarewidelyusedinthehiringofskillsworkers.
(2)Studiesconsistentlydemonstratethatworksamplesyieldvaliditiessuperiortowrittenaptitudeandpersonalitytests.
b)Assessmentcenters—amoreelaboratesetofperformancesimulationtests,specificallydesignedtoevaluateacandidate’smanagerialpotential.
(1)Theevidenceontheeffectivenessofassessmentcentersisimpressive.
II.TRAININGANDDELELOPMENTPROGRAMS
A.Competentemployeesdon’tremaincompetentforever—skillsdeteriorateandbecomeobsolete.
B.TypesofTraining(ppt8)
1.BasicLiteracySkills
a)NinetymillionAmericanadultshavelimitedliteracyskills.
b)Organizationsareincreasinglyhavingtoprovidebasicreadingandmathskillsfortheiremployees.
2.TechnicalSkills
a)Jobschangeasaresultofnewtechnologiesandimprovedmethods.
b)Technicaltraininghasbecomeincreasinglyimportantbecauseofchangesinorganizationdesign.Asorganizationsflattentheirstructures,expandtheiruseofteams,andbreakdowntraditionaldepartmentalbarriers,employeesneedtolearnawidervarietyoftasks.
3.InterpersonalSkills
a)Mostemployeesbelongtoaworkunit.
b)Tosomedegree,theirworkperformancedependsontheirabilitytoeffectivelyinteractwiththeirco-workersandtheirboss.
4.ProblemSolvingSkills
a)Thiswouldincludeactivitiestosharpenemployees’logic,reasoning,andproblem-definingskillsaswellastheirabilitiestoassesscausation,developalternatives,analyzealternatives,andselectionsolutions.
5.WhatAboutDiversityTraining?
a)Thecenterpieceofmostdiversityprogramsistraining.
b)Thetypicalprogramlastsfromhalfadaytothreedaysandincludesroleplayingexercises,lectures,discussions,andgroupexperiences.
6.WhatAboutEthicsTraining?
a)Arecentsurveyfindsthatabout75percentofemployeesworkinginthe1,000largestU.S.corporationsreceiveethicstraining.
b)Buttheevidenceisnotclearonwhetheryoucanteachethics.
c)Criticsarguethatethicsarebasedonvalues,andvaluesystemsarefixedatanearlyage.
d)Criticsalsoclaimthatethicscannotbeformally“taught,”butmustbelearnedbyexample.
e)Supportersofethicstrainingarguethatvaluescanbelearnedandchangedafterearlychildhood.
C.TrainingMethods
1.Trainingmethodsaremostreadilyclassifiedasformalorinformalandon-the-joboroff-the-job.
2.Formaltrainingisplannedinadvanceandhasastructuredformat.(ppt9)
3.Evidenceindicatesorganizationsareincreasinglyrelyingoninformaltraining—unstructured,unplanned,andeasilyadaptedtosituationandindividuals.
4.On-the-jobtrainingincludesjobrotation,apprenticeships,understudyassignments,andformalmentoringprograms.
a)Theprimarydrawbackofthesetrainingmethodsisthattheyoftendisrupttheworkplace.
5.Off-the-jobtrainingcanincludeliveclassroomlectures(themostpopular),videotapes,publicseminars,self-studyprograms,internetcourses,satellite-beamedtelevisionclasses,andgroupactivitiesthatuseroleplaysandcasestudies.
a)McDonald’sHamburgerUniversityexample.
D.CareerDevelopment(ppt10)
1.Theroleoftheorganizationinitsemployees’careershasgonefrompaternalismtosupportingindividualsastheytakepersonalresponsibilityfortheirfuture.
2.TheOrganization’sResponsibilities(ppt11)
a)Clearlycommunicatingtheorganization’sgoalsandfuturestrategies.
b)Creatinggrowthopportunities
c)Offeringfinancialassistance
d)Providingthetimeforemployeestolearn
3.TheEmployee’sResponsibilities(ppt12-13)
a)Knowyourself
b)Manageyourreputation
c)Buildandmaintainnetworkcontacts
d)Keepcurrent
e)Balanceyourspecialistandgeneralistcompetencies
f)Documentyourachievements
g)Keepyouroptionsopen
III.PERFORMANCEAPPRAISAL
A.PurposesofPerformanceAppraisal
1.Managementusesappraisalsforgeneralpersonneldecisions.
a)Promotions,transfers,andterminations
b)Appraisalsidentifytraininganddevelopmentneeds.
2.Usedasacriterionagainstwhichselectionanddevelopmentprogramsarevalidated.
a)Theeffectivenessoftraininganddevelopmentprogramscanbedeterminedbyusingperformanceappraisalstoassesssubsequentemployeejobperformance.
3.Appraisalsalsoprovidefeedbacktoemployeesonhowtheorganizationviewstheirperformance.
4.Appraisalsareusedasthebasisforrewardallocations.
a)Decisionsaboutwhogetsmeritpayincreasesandotherrewardsaretypicallydeterminedbyperformanceappraisals.
B.PerformanceAppraisalandMotivation(ppt14-15)
1.Theexpectancymodelofmotivationoffersthebestexplanationofwhatconditionstheamountofeffortanindividualwillexertonhisorherjob.
2.Avitalcomponentofthismodelisperformance,specificallytheeffort-performanceandperformance-rewardlinkages.
3.Ifemployeesknowwhatisexpectedofthem,howtheirperformancewillbemeasured,andtheyfeelconfidentthattheireffortswillresultinasatisfactoryperformanceasdefinedbythecriteriabywhichtheyarebeingmeasuredthentheywillbemotivated.
4.Theyalsomustfeelconfidentthatiftheyperformastheyarebeingasked,theywillreceiverewards.
C.WhatDoWeEvaluate?
1.Theperformancecriteriaorcriterionusedtoevaluateemployeeperformancewillhaveamajorinfluenceonwhatemployeesdo.
2.Usepublicemploymentagencyexample.
3.Usemanagementconsultantspecializinginpoliceresearchexample.
4.Thethreemostpopularsetsofperformanceappraisalcriteriaareindividualtaskoutcomes,behaviors,andtraits.(ppt16)
a)Individualtaskoutcomes.Ifendscount,ratherthanmeans,thenmanagementshouldevaluateanemployee’staskoutcomes.
b)Behaviors.Inmanycasesit’sdifficulttoidentifyspecificoutcomesthatcanbedirectlyattributabletoanemployee’sactions.
(1)Insuchinstancesitisnotunusualformanagementtoevaluatetheemployee’sbehavior.
c)Traits.Theweakestsetofcriteria,yetstillwidelyusedbyorganizations.
(1)Traitsincludehavingagoodattitude,showingconfidence,beingdependableandsoon.
D.WhoShouldDotheEvaluating?
(ppt17)
1.Bytradition,amanager’sauthoritytypicallyhasincludedappraisingsubordinates’performance.
2.Othersmayactuallybeabletodothejobbetter.
3.ImmediateSuperior
a)Theemployee’simmediatebossconductsthemajorityofallperformanceevaluationsatthelowerandmiddlelevelsoftheorganization.
(1)Manybossesfeelunqualifiedtoevaluatetheuniquecontributionsofeachoftheirsubordinates.
(2)Othersresentbeingaskedto“playGod”withtheiremployees’careers.
(3)Organizationsusingself-managedteams,telecommuting,andotherorganizingdevices,distancebossesfromtheiremployees.
4.Peers
a)Peerevaluationsareoneofthemostreliablesourcesofappraisaldata.
(1)Peersareclosetotheaction.
(2)Usingpeersasratersresultsinseveralindependentjudgments,whereasabosscanofferonlyasingleevaluation.
(3)Andthe
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