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?
- Written essay. Simple to use, but more a measure of one's writing ability.
- Critical incidents. Rich examples and behavior based, but lack of quantification.
- Adjective rating scales. Provide quantitative data, but don't provide depth of job behavior.
- BARS (rating scale + examples of behaviors). Focuses on specific and measurable job behaviors, difficult to develop measures.
- MBO (evaluation of accomplishment of goals).Focuses on end goals, but time consuming.
- 360-degree appraisal. More thorough, but time consuming.
- 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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