Performance Management and Appraisal System

Performance Management and Appraisal System

HRMT600 | LESSON EIGHT: REVIEW FOR FINAL EXAM

Introduction

Topics to be covered:

· Overview of highlights and key words from previous lessons

This course has provided an overview of the history of human resource management (HRM) and discussions of key issues in HRM such as the importance of orientation programs, how to handle processes such as job analysis and performance management, and the role of HRM professionals in labor relations with unions. This lesson will help you prepare for your final exam by providing a review of highlights from the previous lessons in this course, including the key terms presented in each lesson.

Lesson 1: Fundamentals of HRM and Strategic Implications

In the 1800s, HRM was not a recognized function or profession, and organizations did not follow any established norms that could be regarded as best practices for HRM. Rather, organizations strove to manage labor in a way that treated workers fairly while encouraging them to be as productive as possible to support the organization in its efforts to maximize profits. Over the years, HRM evolved and developed as a function in organizations that handles staffing, retention, development, adjustment, and change management. Today, organizations must have a well-planned and managed HRM function if they wish to succeed. HRM professionals are a vital part of an organization’s management, helping organizations handle various activities, including the challenges of competing globally.

Key Terms from Lesson 1

ADJUSTMENT

CHANGE MANAGEMENT

DEVELOPMENT

EMPLOYMENT MANAGEMENT

GLOBALIZATION

HRM SYSTEM

HUMAN RELATIONS

HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCES

INDUSTRIAL DEMOCRACY

INDUSTRIAL PSYCHOLOGY

INDUSTRIAL WELFARE WORK

LABOR PROBLEM

LABOR PROCESS

LABOR POWER

LABOR TIME

PERSONNEL MANAGEMENT

RETENTION

SCIENTIFIC MANAGEMENT

STAFFING

TECHNICAL SYSTEM

VOCATIONAL GUIDANCE

Lesson 2: The Legal and Ethical Context of HRM

The practice of HRM is subject to various laws and regulations that HRM managers must follow as they deal with personnel issues, including the recruitment, hiring, and firing of employees. In addition to abiding by legal requirements, HRM managers also have an obligation to practice good ethics as they handle an organization’s personnel issues. This includes respecting employees’ rights and ensuring that disciplinary actions comply with legal requirements, as well as ethical considerations, including justice.

Key Terms from Lesson 2

ADVERSE IMPACT

AFFIRMATIVE ACTION

AGE DISCRIMINATION IN EMPLOYMENT ACT

CONTRACTUAL EMPLOYMENT

DISCRIMINATION

DISTRIBUTIVE JUSTICE

EMPLOYEE VOICE

EMPLOYMENT-AT-WILL

EQUAL PAY ACT

ETHICAL DILEMMAS

FAIR LABOR STANDARDS ACT (FLSA)

FAMILY AND MEDICAL LEAVE ACT (FMLA)

HARASSMENT

INFORMATIONAL JUSTICE

INTERACTIONAL JUSTICE

JUSTICE

ORGANIZATIONAL CITIZENSHIP BEHAVIORS

PREGNANCY DISCRIMINATION ACT

PROCEDURAL JUSTICE

REVERSE DISCRIMINATION

SEXUAL HARASSMENT

STRUCTURAL JUSTICE

TERMINATION

TITLE I AND TITLE V OF THE AMERICANS WITH DISABILITIES ACT OF 1990 (ADA)

TITLE II OF THE GENETIC INFORMATION NONDISCRIMINATION ACT OF 2008 (GINA)

TITLE VII OF THE CIVIL RIGHTS ACT

UNEQUAL TREATMENT

WORKERS’ COMPENSATION LAWS

Lesson 3: Staffing the Organization

One of the primary responsibilities of HRM is to attract and recruit qualified workers to fill positions within an organization, ensuring the organization is adequately staffed. This begins with conducting a job analysis, job descriptions, and job specifications for each position within an organization. The strategies that HRM professionals use for recruitment and selection may vary depending upon factors such as the type of position to be filled, the organization’s environment, the nature of competition from other organizations, and the physical location of the organization.

Key Terms from Lesson 3

ABILITIES REQUIRED

BEHAVIOR

CREDENTIALS/EXPERIENCE

CRITICAL INCIDENTS

ENVIRONMENTAL FACTORS

ESSENTIAL FUNCTIONS

INFORMATION INPUT

INTERVIEW

JOB ANALYSIS

JOB CONTEXT

JOB DESCRIPTION

JOB PERFORMANCE

JOB SPECIFICATION

KNOWLEDGE REQUIRED

LABOR MARGIN

MENTAL PROCESSES

OBSERVATION

OTHER JOB CHARACTERISTICS

PHYSICAL CHARACTERISTICS

RELATIONSHIPS

SKILLS REQUIRED

STAFFING

STRUCTURED QUESTIONNAIRES

TASKS

WORK OUTPUT

Lesson 4: Employee Training and Development

Once an employee is hired, he or she will need orientation followed by other socialization processes, as well as training and development. Training can be a costly investment but it also yields benefits that generally make the costs worthwhile. HRM professionals should know the six Es of training, which are the reasons organizations should provide training to employees: engage, educate, enhance, empower, energize and enlighten.

Key Terms from Lesson 4

CODE OF CONDUCT

CODE OF ETHICS

DEVELOPMENT

GOALS

MENTORSHIP

MISSION

OBJECTIVES

ONBOARDING

ORGANIZATIONAL CULTURE

ORIENTATION

PERFORMANCE AND SOCIAL FEEDBACK

RELATIONSHIP BUILDING

SOCIAL CAPITAL

SOCIAL FACILITATION

SOCIAL-ORIENTED INFORMATION SEEKING

SOCIALIZATION

SYNERGY

TASK-ORIENTED INFORMATION SEEKING

TRAINING

VISION

Lesson 5: Performance Management and Appraisal System

To establish standards for behavior and hold employees accountable to those standards, organizations usually have a system of performance management. An important part of this system is a process that evaluates and appraises employee behavior and performance, which can be used to encourage employees to meet organization’s expectations for employee behavior and performance. When involved in a performance management system, HRM professionals must be able to define, facilitate, and encourage performance. They also must use appropriate methods to evaluate employee performance. Some of their options include management by objectives, critical incident diary, behaviorally anchored rating scale, graphic rating scale, ranking, paired comparison, forced distribution, and 360-degree evaluation. Regardless of how they approach the evaluation process, they must ensure it is reliable and valid, and they must make every effort to avoid the common errors made on performance appraisals.

Key Terms from Lesson 5

ABILITIES

ABSOLUTE METHODS

ATTITUDE

ATTRIBUTION

BENCHMARK

CENTRAL TENDENCY ERROR

COMMUNICATION

COMPARATIVE METHODS

CONSISTENCY

CONTRIBUTION

DEVELOPMENT DECISIONS

DISCRETIONARY EFFORT

EFFECTIVENESS

EFFORT

EFFORT BARGAIN

EVALUATIVE DECISIONS

HALO ERROR

INTELLECTUAL ABILITIES

LENIENCY ERROR

LOW-DIFFERENTIATION ERROR

PERCEPTION

PERFORMANCE

PERFORMANCE APPRAISAL

PERFORMANCE DEFINITION

PERFORMANCE ENCOURAGEMENT

PERFORMANCE FACILITATION

PERFORMANCE MANAGEMENT

PERSONAL BIAS ERROR

PHYSICAL ABILITIES

PRODUCTIVITY

RACE AND CULTURE

RECENCY ERROR

RELEVANCE

RELIABLE

SELF-AWARENESS ABILITIES

STRICTNESS ERROR

TOTAL PERSON CONCEPT

VALID

VOICE

Lesson 6: Compensation and Benefits

To be successful at work, employees must be motivated and engaged. Compensation and fringe benefits can help motivate employees. Organizations have a variety of options when deciding the types of pay systems they will implement and the fringe benefits they will offer. To make these decisions, they should understand what motivates their employees and provide the types of compensation and fringe benefits that have value to employees. As part of this process, organizations must be aware of whether individual employees are exempt or non-exempt.

Key Terms from Lesson 6

BONUS PLANS

COMMISSION

COMPENSATION

COMPETENCY-BASED PAY SYSTEM

EMPLOYEE SERVICES

ENGAGEMENT

EXTERNAL EQUITY

FRINGE BENEFITS

GAIN-SHARING

HOURLY WAGES OR DAYWORK

HYGIENE FACTORS

INDIVIDUAL EQUITY

INTERNAL EQUITY

MARKET-BASED PAY SYSTEM

MOTIVATION

MOTIVATOR FACTORS

NEEDS-BASED THEORIES OF MOTIVATION

PAY COMPRESSION

PAY-FOR-PERFORMANCE SYSTEM

PAYMENTS FOR TIME NOT WORKED

PIECEWORK

PROCESS-BASED THEORIES OF MOTIVATION

PROFIT-SHARING

SALARY

SECURITY AND HEALTH

STOCK OPTIONS

UNEMPLOYMENT BENEFITS

WORKERS COMPENSATION

Lesson 7: Organized Labor

Many organizations employ individuals who are members of labor unions. When HRM professionals work in such organizations, they must understand labor unions and how this affects labor relations. In addition, they must understand the collective bargaining process and the role they are expected to perform as part of this process. They also must understand legislation affecting labor relations, including right to work laws and how these affect employment processes in states that have such laws.

Key Terms from Lesson 7

AGENCY SHOP

ARBITRATION

BARGAINING ZONE

BOYCOTT

CLOSED-SHOP AGREEMENTS

COLLECTIVE BARGAINING

CRAFT UNIONS

DISTRIBUTIVE BARGAINING

FEATHERBEDDING

FREE RIDERS

GRIEVANCE

INDUSTRIAL UNIONS

INTEGRATIVE BARGAINING

LABOR CONTRACT

MEDIATION

OPEN-SHOP AGREEMENT

PICKETING

PIECEWORK

RIGHT-TO-WORK LAWS

SHIFT DIFFERENTIAL

STRIKE

UNION SECURITY CLAUSE

UNION SHOP

UNIONS

YELLOW-DOG CONTRACT

Conclusion

HRM professionals have a myriad of responsibilities, and they must be knowledgeable in a variety of topics and issues to do their jobs well. This includes being knowledgeable about legal requirements, as well as other issues such as how to motivate employees and how to handle processes such as collective bargaining. HRM is a challenging profession. It also is a critical function that is an absolute necessity if an organization is to be successful.

Course Overview

This course has introduced you to some of the basic, but also most critical, aspects of HRM. By being knowledgeable about these areas, understanding their importance and how to handle them, you can be a successful HRM professional.

References

Banfield, P., & Kay, R. (2008). Introduction to human resource management. New York: Oxford University Press.

Cascio, W. F. (2010). Managing human resources: Productivity, quality of work life, profits, (8th ed.). New York: McGraw-Hill/Irwin.

Nickels, W. G., McHugh, J M., & McHugh, S. M. (2013). Understanding business, (10th ed.). New York: McGraw-Hill Irwin.

Schermerhorn, J. R. Jr., Hunt, J. G., & Osborn, R. N. . (2005). Organizational behavior, (9th ed.). Hoboken, New Jersey: John Wiley and Sons, Inc.

York, K. M. (2010). Applied human resource management: Strategic issues and experiential exercises. Thousand Oaks, California: Sage Publications, Inc.

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