Managing human resources - Keeping great people: 2 ways organizations do this

6 important questions on Managing human resources - Keeping great people: 2 ways organizations do this

In what 2 ways does an organization keep great people?

  • Performance management system
  • Compensating employees

Explain the performance management system

  • Desired employee performance levels determined by organizations and managers
  • Actual employee performance levels measured/assessed by managers

What different methods can be used to assess performance?

  1. Written essay. Simple to use, but more a measure of one's writing ability.
  2. Critical incidents. Rich examples and behavior based, but lack of quantification.
  3. Adjective rating scales. Provide quantitative data, but don't provide depth of job behavior.
  4. BARS (rating scale + examples of behaviors). Focuses on specific and measurable job behaviors, difficult to develop measures.
  5. MBO (evaluation of accomplishment of goals).Focuses on end goals, but time consuming.
  6. 360-degree appraisal. More thorough, but time consuming.
  7. Multiperson (evaluation of work group). Compares employees with another, but unmanageable with large number of employees.
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What are reasons for an employee's performance not to be up to standard? How can you fix this?

  • Job mismatching (hiring error) --> reassign to better-matched job.
  • Inadequate training --> provide training.
  • Lack of desire to do job (discipline problem) --> Employee counseling, uncover why employee has lost desire to work productively and find a way to fix the problem. OR take disciplinary action.

Explain skill based pay and variable pay systems.

  • Skill-based pay: rewards employee for job skills and competencies they have. Job title doesn't define pay, skills do.
  • Variable pay : compensation is dependent on performance.

What determines pay and benefits?

  • Employees tenure and performance
  • Kind of job
  • Kind of business
  • Unionization
  • Labor or capital intensive
  • Management philosophy
  • Geographical location
  • Company profitability
  • Size of company

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