Human Resource

Development

Revision Slides

3-1
 Human Resource Development

• HRD is a set of systematic and planned activities

designed by an organization to provide its
members with the necessary skills to meet current
and future job demands.
 Human Resource Development

• Provides employees Organization’s

with the skills to meet
strategic goals
current and future
job demands.
• Aligns HRD activities
with organization's
goals. HRD activities
• Should be planned
for every employee in
the organization.
Business results
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 Strategically Aligning HRD

• HR professionals can directly support the

organization and its strategic goals and objectives
by:
– Participating in the strategic planning process.
– Providing education and training in the
concepts and methods of strategic planning.
– Linking the outcomes of HRD activities to
organizational goals.
 Aligning HRD - Key Principles

• Link HRD learning objectives and outcomes

clearly to business and strategic goals.
• Maintain strong customer focus when designing,
developing, and implementing HRD activities.
• Manage HRD with a systems view of performance
in the organization.
• Measure HRD processes for continuous
improvement.
 Importance of HRD
• HRD helps in:
1. Developing competent employees and committed
work force
2. Establishing role clarity
3. Generating great trust and respect
4. Minimizing resistance to change
5. Facilitating Human Resource Planning
6. Increasing productivity, Cost effectiveness etc.
Evolution of HRD
 Evolution of HRD
• Through the term, HRS is used commonly only since 1980’s, the
concept is quite ancient

 Early Apprenticeship Training Program :

 The origins of HRS can be traces since 18th century by
apprenticeship training.
 In this era, small shops operated by skilled artisans produced
virtually all household goods, such as furniture, clothing & shoes
 To meet a growing demand for their products craft shop owners
had to employ additional workers
 Without vocational training or technical schools, the shop keepers
had to educate & train their own workers
 For little or no wages, these trainees or apprentices, learned the
craft of their master, usually working in the shop
 Apprentices who mastered skills were considered “yeomen”, &
could leave their masters & establish their own shops
 Early Vocational Education Programs:

 De Witt Clinton, in 1809, founded the first recognized privately funded

vocational school, referred as manual school, in New York
 The purpose was to provide occupational training to unskilled young people
who were unemployed or had criminal records
 Manual schools grew in popularity, particularly in the Midwestern status

 Early Factory Schools :

 With the advent of the industrial revolution during late 1800’s, machines
began to replace the hand tools of the artisans.
 “Scientific” management principles recognized the significant role of machines
in better & more efficient production systems
 Specifically semi skilled workers using machines could produce more than the
skilled workers in small craft shops
 This marked the beginning of factories
 Factories made it possible to increase production by using machines
 Early Training Programs for Semiskilled & Unskilled Workers:
 Both apprenticeship programs & factory schools provided training for skilled
workers, very few companies during this time offered training programs for
unskilled workers
 This changed after 2 significant historical events.
 1st was the introduction of model T by Henry Ford in 1913. Model T was the 1st
car to be mass produced using an assembly line, in which production required
only the training of semiskilled workers to perform several tasks
 The new assembly lines cut production costs significantly & Ford lowered its
prices, making the model T affordable to a much larger segment
 With increasing demand for Model T, ford had to design more assembly lines,
& this provided more training opportunities
 The 2nd historical event was to out break of World War 1. to meet the huge
demand for military equipments, many factories that produced non-military
goods had to retool their machinery & retain their workers, including the
semiskilled.
 The Human Relations Movement:

 One of the undesirable by–products of the factory system was the

frequent abuse of unskilled workers, including children, who were
often subjected to unhealthy working conditions, long hours and
low pay.
 The appalling / awful conditions urge a national anti-factory
campaign
 Led by Mary Parker Follett & Lillian Gilbreth, the campaign gave rise
to the “human relations” movement advocating more humane
working conditions
 The human relations movement provided a more complex &
realistic understanding of workers
 The HR movement highlighted the importance of human behavior
on the job
 The Establishment of Training Profession :

 With the outbreak of World War II, the industrial sector was once
again asked to retool its factories to support the was efforts
 With the World War I, the initiative led to the establishment of new
training program, with larger organizations & unions
 The federal government established ”Training with Industry” (TWI)
services to coordinate training programs across defense – related
industries
 By the end of the war, TWI had trained over 23,000 instructors
awarding over 2 million certificated to supervisors, unions, services
 Many defense related companies established their own training
departments with instructors trained by TWI
 In 1942, the American Society for Training Directors (ASTD) was
established & formed some standards within this emerging
profession
 Emergence of HRD :
 During 1960’s & 70’s, professional trainers realized that their role
extended beyond the classroom training
 The move towards employee involvement in many organizations
required trainers to coach & counsel employees
 T & D therefore expanded to include interpersonal skills such as
coaching, group process facilitation & problem solving
 This additional emphasis on employee development inspired the
ASTD to rename itself as the American Society for Training and
development.
 1980’s saw greater changes affecting the t & D
 At ASTD national conferences, in late 70’s early 80’s, discussions
centered on rapidly expanding profession
 Influential books helped to clarify & define HRD
 Since 90’s efforts are made to strengthen the strategic role of HRD,
i.e. how HRD links to & supports the goals & objectives of
organization
 Global Trends

• Continued expansion of global business and

increased interdependence of countries.
• Impact of differing cultures.
• Offshoring.
• Corporate social responsibility and corporate
governance.
• Terrorism, safety, and security.
• Technology issues.
• Development of workers.
 Challenges
• Eliminating the skill gap
• Increasing workforce diversity
• Technological changes
• Globalization
• Need for life long learning
 The Learning Organization
• Organization is characterized by its capability to
adapt to changes in its environment.
• Learning is the core of all HRD activities
Learning is accomplished by the
organizational system as a whole.
Systems thinking is practiced.
Employees network internally and
externally.
Change is embraced.

Failures become opportunities to learn.

 HRD – Adult Learning Principles
• Adults want training that:
– Focuses on ‘real work’ subject matter
– Applies to their jobs
– Meets their goals and expectations
– Allows for debate and challenge of ideas
– Encourages an exchange of ideas and opinions
– Respects their opinion and experience
– Meets a current need
 The Five Disciplines of The Learning
Organization

• Systems Thinking – conceptual framework that

makes patterns clearer
• Mental Models – deeply ingrained assumptions
• Personal Mastery – high level of mastery
• Team Learning – aligning the team capacity to
create results its members desire
• Shared Vision – a look into the future genuinely
shared by all
HRD: Adult Learning Styles
Learning styles influence how we:
solve problems, work in teams, manage conflict,
Make career choice and negotiation relationships

– Visual – show me
– Auditory – talk with me about it
– Kenesthetic – let’s do something
 Organizational Learning takes place on
multiple (three) levels

• Individual – Occurs through self-study, insight,

observation.
• Group – Occurs through the increase in KSA’s
accomplished within groups.
• Organizational – Occurs through the shared
insights and knowledge of individuals and builds
on past organizational memory such as policy,
strategies, and models.
 Obstacles to Learning

• Low tolerance for change.

• Lack of Trust. (To overcome this obstacle, it is
helpful to involve employees in the training design.
When employees see how training fits into the
overall plan, they become more supportive.)
• Peer group pressure.
 Retention

Retention will be increased by appealing to all

learning styles.
90% I m m e d i a t e u s e o f l e a rn i n g

80%
P ra c t i c e b y d o i n g
70%

60%
Approximate
50%
retention rate Di s c u s s i o n
40%

30% De m o n s t ra t i o n

20% Re a d i n g
L e c t u re
10%

Degree of participation

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 Competencies

• Sets of behaviors that encompass skills,

knowledge, abilities, and personal attributes that
are critical to work accomplishment.
• Core competencies must be developed as they are
essential to business operations.
• May be defined on an organizational or individual
basis.
• Are aligned to the organization’s strategic goals
and performance management system.

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 Competencies for the HR Profession

• Credible Activist
• Culture and Change Steward
• Talent Manager/Organizational Designer
• Strategy Architect
• Operational Executor
• Business Ally
 Principles of Motivation

• All human behavior is caused. People have a

reason for acting.
• All behavior is directed toward achieving a goal.
Behavior is not random.
• Each person is unique. No two people have
exactly the same characteristics.
 Maslow’s Hierarchy of Needs

Off the Job On the Job

Self- Opportunities for growth development, problem solving,
Education, religion, personal growth
Actualization creativity

Esteem Training, recognition, high status, increased

Approval of family, friends, community (self and others) responsibilities

Family, friends, community groups Belonging and Love Work groups, clients, coworkers, supervisors
Working conditions, employment security
Freedom from war, pollution Safety and Security
and benefits
Food, water, sex Basic Physical Needs Base salary—paycheck

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 Herzberg’s Motivation-Hygiene Theory

Working Personal
Pay Conditions Growth

Extrinsic Intrinsic
Hygiene + Motivation = Motivation
Factors Factors

Supervision Coworkers Recognition Achievement

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 According to Herzberg’s theory

• Unacceptable conditions in regard to hygiene

factors will lead to job dissatisfaction.
• Acceptable conditions will lead only to a state of
satisfaction; they do not motivate-they only satisfy.
• However, hygiene factor levels must be acceptable
in order for the motivation factors to become
operative.
 McClelland’s Theory

High achievers:
• Set moderately difficult but potentially achievable
goals.
• Prefer to work on a problem rather than leave the
outcome to chance.
• Seem to be more concerned with personal
achievement than with the rewards of success.
• Seek situations in which they get concrete
feedback on how well they are doing with regard
to their work.
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 McGregor’s Theory X and Theory Y

X Y
(Rigid control) Continuum (Autonomy)
Theory X Theory Y
 People inherently dislike work  People do not inherently
and will try to avoid it. dislike work.
 People have to be coerced and  People do not like rigid
threatened with punishment if control and threats.
the organization’s goals are to
be met.
 Most workers like  Under proper conditions,
direction and will avoid people do not avoid
responsibility. responsibility.
 People want security in their  People want security but also
work above all. have other needs such as self-
actualization and esteem.
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 Skinner’s Behavioral Reinforcement
Theory

Positive Negative
Punishment Extinction
Reinforcement Reinforcement

Person repeats Person works Response causes Unlearning

desired to avoid an something undesired
behaviors to undesirable negative to behavior
gain a reward. consequence. occur. because of no
response or
reinforcement.

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 Behavior Modification’s Intervention
Strategies

• Positive Reinforcement - Involves giving a person a desired

reward to attain desired behavior and/or encourage its
repetition.
• Negative Reinforcement – Involves avoiding an
undesirable consequence by giving the person a reward
when a desired response is exhibited.
• Punishment – Results in a decrease in the undesired
behavior because the response causes something negative
to occur.
• Extinction – Involves no response. When behavior is not
reinforced (positively, negatively, or via punishment), the
behavior will diminish and eventually become nonexistent.
 Positive Reinforcers

• Contrived reinforcers • Natural reinforcers

are those the already exist within
organization uses to the organization and
motive employees. involve little or no
– Salary increases cost, extremely
– Gifts effective.
– Bonuses – Attention
– Recognition
– Praise
 Applications of Motivational Theories

Motivational theories are the basis for:

• Positive reinforcement.
• Design of work and work
environment (intrinsic).
• Goal setting.
• Formal extrinsic rewards.
• Pay-for-performance
systems.

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 Human Resource Development Functions

Career Development
Programs designed to assist
employees in advancing work lives
and professional growth

Training Employee
Programs designed to assist Development
employees acquire better job
Programs designed to
skills
optimize talent now and in
the future

Organizational Development
Process of facilitating unit or system-wide
changes in organizations to improve
attitudes, values and productivity
 Training and Developmental Activities

• Training involves a • Developmental

process of providing activities have long-
KSA’s specific to a term focus for
particular task or job. preparing employees
• Provides skills that can for future
be used immediately, responsibilities.
excellent for short-
term skill gaps.
 The ADDIE Model
Training process framework

Assessment Design Development

Evaluation Implementation

Systematic development process used to create

employee learning that aligns with strategic goals.

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 The ADDIE Model

• Assessment – The phase in which data is collected to

identify gaps between actual and desired organizational
performance.
• Design – Initial decisions are made regarding course
content, goals and objectives, delivery methods, and
implementation strategies.
• Development – Materials are created, purchased, and /or
modified to meet the stated objectives.
• Implementation – The program is delivered to the target
audience.
• Evaluation – Consists of comparing the program results to
the established objectives to determine whether the
original needs were met.
 Assessment

Identify
needs.

Find
Form basis Purpose of
performance
for evaluation. Assessment gaps.

Identify
programs
and target
audience.

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 Needs Assessment Levels

Examines KSAs needed as

Organizational organizations and jobs
change.

Compares job requirements

Task with employee knowledge and
skills.

Focuses on individual
Individual employees and how they
perform.
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 Needs Assessment Process

1. Gather data.

5. Implement. 2. Determine
training needs.

4. Calculate cost.
3. Propose solutions.

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 Design

Decisions are made Training objectives use

regarding: the SMART format:
• Goals and objectives. S Specific
• Target audience M Measurable
(aptitude, prior A Action-oriented
knowledge, and
R Realistic
attitudes).
T Timely
• Selection of an
instructional designer.

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 Development
Involves the creation of training materials.
Development trends include:
• Use of learning objects (LOs) or reusable learning
objects (RLOs).
– Saves development time by reusing content in a variety
of contexts in the organization.
– Object may be a graphic, an animation, or an entire
learning module.
• A dedicated learning management system (LMS)
to hold course content and track employee
activities.
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 Types of Training Programs

• Orientation and On- • Skill development

boarding – Remedial
– Orientation is the – Sales and quality
initial exposure to the – Technology
organization • Specialized training
– On-boarding is the programs
expansion of – Executive
orientation and – Wellness
assimilation into the – Harassment
organization prevention

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 Delivery Methods Serve Two Important
Purposes

• They provide a means • They keep the

for the participant to participant interested
learn the program and involved so the
content. learning is enhanced.
 Delivery Methods and Media

• Classroom training
• Self-directed study
• E-learning
− Synchronous or
asynchronous
• Blended learning
• On-the-job training
• Vestibule training Dependent on:
• Learning objectives
• Cost limitations
• Time frame
• Equipment
• Audience

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 On-the-job Training

• Provided to employees by managers at the actual

worksite. Utilizes demonstration and actual
performance of job tasks to be accomplished.
• Vestibule training is a combination of on- and off-
the-job training. Training is done off line to bring
the trainee up to production standards before
assuming online duties.
– Used where training period is relatively long
– Used when training is complex and requires the
trainee to concentrate and be free of
distractions
 Implementation
• Program is delivered to the audience.
• Most visible step in the ADDIE process.
• At this point, the primary responsibility for success lies
with the facilitator.
• Primary tasks are:

Scheduling Announcing and

Utilizing pilot Revising
the implementing the
programs content
program program

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 Selecting a Facilitator

• Effective facilitators possess a variety of

characteristics that make them suitable for leading
a training session (training expert, subject matter
expert “SME”, technical expert, consultant,
communications expert).
• The goal is to find the right mix of experience
based on the program content and the target
audience.
 Evaluation

• Measures program effectiveness. Training and

development programs are relevant only when
the effectiveness is measured through
evaluation.
• Builds HR credibility by showing tangible
results.
• Desired outcome is transfer of training—
applying knowledge and skills learned in
training to the job.
– Transfer of training is the effective and
continuing on-the-job application of the
knowledge and skills gained during the
learning experience.
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 ADDIE Model

Evaluation
• Determine if program reached its objectives

• Kirkpatrick’s Four Stages

– Level 1: Reaction How participants felt about it
– Level 2: Learning How skills, attitudes changed
– Level 3: Behavior How it was applied
– Level 4: Results ROI
 Levels of Evaluation: 1 and 2
SPHR only

Level 1: Reaction Level 2: Learning

Measures reaction of Measures the learning
participants to the of facts, ideas, concepts,
training. Easiest to theories.
administer.
Checklists Post-measures
Questionnaires Pre-/post-measures
Interviews Pre-/post-measures with
control group

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 Levels of Evaluation: 3 and 4
SPHR only

Level 3: Behavior Level 4: Results

Measures a change in Measures
behavior. organizational results.

Performance tests Progress toward

organizational objectives
Critical incidents
360-degree feedback Performance appraisals
ROI, cost-benefit analysis
Simulations/observations

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 Barriers to Transfer of Training

• The most significant barrier participants

experience is the lack of reinforcement and
support when attempting to apply what they have
learned to their jobs.
• A nonsupportive organizational culture.
• Irrelevant training content.
• Newly learned behaviors are not valued or
modeled by participant’s manager(s).
 Organizational Development
• The process used to enhance the effectiveness of an
organization and the well-being of its members
through planned interventions.
• OD initiatives occur on both a large and small
scale
• Goals are to improve: (purpose of OD)
– Productivity (efficiency and effectiveness)
– Employee satisfaction with the quality of their work life
– The organization’s ability to revitalize and develop itself
over time
– Organizational processes and outputs
 Organizational Development (OD) “Change
Management” Initiatives

• Focus on changing the entire system

• Link to the organization's strategic plan
• Use applied behavioral science
• Help organizations solve their own problems
• Are more adaptive than a formal planning process
• Important: The whole system must change, not just
a few components of the system
 OD Interventions

• OD interventions are appropriate when an

organization:
– Experiences a merger or acquisition that
introduces a culture that is not compatible.
– Experiences low trust, high turnover, or high
stress.
– Lacks the ability to manage conflict.
 OD Intervention Process

3. 1.
Evaluate Diagnose HR roles:
the results. the environment.
• Change agent
• Evaluator

2.
Develop
an action plan.
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 OD Theory’s Two Categories

• Change Process Theory – Unfreezing, Moving, and

Refreezing. The change process explains how
change takes place.
• Implementation Theory – The design and
implementation of specific OD interventions
targeted at managing the change process.
– Example – Two organizations with strong cultures are
preparing to merge. HR will look for specific OD
interventions to apply to assist in making the merger
successful.
 OD Interventions

Interpersonal Technological Structural

• Work relationships • Process analysis • Span of control

between employees • Job design • Reporting
• Specialization relationships
• Work flow
analysis

Examples: Team building, diversity, flexible work

and staffing, and quality initiatives
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 Interventions Tools

• Team Building
• Flexible Work and Staffing Arrangements
• Diversity Programs
• Quality Initiatives
– Total quality management (TQM) is a strategic
management system for achieving customer
satisfaction that involves all managers and
employees and uses quantitative methods to
continuously improve an organization’s
processes.
 TQM Philosophies

• W. Edward Deming – 14 point program. If

company made poor quality products, it is
management’s fault and no one else’s.
• Joseph M. Juran – Fitness for use, emphasizes
quality planning, quality control, and quality
improvement.
• Philip B. Crosby – Added four quality absolutes:
definition of quality, prevention system,
performance standard, and measurement of
quality.
 Systems Theory

• Applied in organizational development

interventions.
• Essential to the quality movement and leads to
process improvement.
• Based on understanding the relationship
between three key components:

Inputs Process Outputs

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 Process-Flow Chart

Coordinator identifies judgment issue and develops questionnaire.

Prospective participants are identified and asked to cooperate.

Coordinator sends questionnaires to willing participants, who record their

judgments and recommendations and return the questionnaires.

Coordinator anonymously compiles summaries and reproduces

participants' responses.

Coordinator sends the compiled list of judgments to all participants.

Participants comment on ideas and propose a final judgment.

Coordinator looks
for consensus.

Coordinator accepts consensus judgment as group's choice.

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 Control Chart

Control Chart for Surface Finish

150

Upper Control Limit

130

110
Surface Finish (Microinches)

90 Process Center

70

50

Lower Control Limit

30
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49
Measurement Number

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 Cause-and-Effect Diagram

Machine People

Label error

Cosmetic defects
Deburring
machine
Wrong part used
Wrong packaging
Milling
Assembled wrong
machine

Assembly
Failures

Unit leaks

Unable to adjust Low-cost

supplier

Failed test Tried to cut Surface roughness on

corners sealing surfaces

Method Material

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 Scatter Diagram

Income
Level

Education Level

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 Histogram

150

125

100
Number of
Transactions 75

50

25

0 30 60 90 120

Time in Seconds

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 Pareto Chart

100 100%
90 93% 90%
90%
80 86% 80%
80%
70 72% 70%
60 63% 60%
50 50%
40 45% 40%
30 30%
20 20%
23% 22% 6%
10 18% 4% 3% 10%
9% 8% 7%
0 0
Unit Wrong Failed Assembled Label Cosmetic Unable to Wrong
leaks parts used test wrong error defects adjust packaging Other

Number of Occurrences

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 Six Sigma

• Data-driven methodology for eliminating defects.

• A process must not produce more than 3.4
defects per million opportunities.
• Six Sigma employees (Green Belts) and project
leaders (Black Belts) are overseen by quality
leaders (Master Black Belts).
• A defect is defined as anything outside the
customer’s specifications.

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 Career Development

Career management: Career planning:

organizational individual focus
focus

Career development occurs when the needs of the

organization and the individual coincide.
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 Career Development, Career Planning,
and Career Management

• Career Development – Process by which

individuals progress through a series of stages in
their careers. Consists of two processes;
– Career Planning – Actions the individual
performs to give direction to their work life
– Career Management – Involves preparing,
implementing, and monitoring employees’
career paths, with the primary focus on the
goals of the organization
 Roles in Managing Career Development

• An individual is primarily • HR is responsible for

responsible for their own
career.
• Four key players in the
career development
process: individual, their
manager, HR, and • Organizational leadership
organizational leaders.
• Manager serves as:
– Coach
– Appraiser
– Advisor
– Referral Agent
designing career paths,
enlargement and
enrichment of programs
that enable employees to
achieve their goals
– Link CD to org mission
and vision
– Clearly communicate
goals
 Model for Career Development

Preparation for work

Organizational entry

Early career establishment

and achievement

Mid career

Late career
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 Career Development Programs

• Employee self-assessment
• Individual coaching/counseling
– Mentoring
– Coaching
– Executive coaching
• Employee development programs
– Job rotation, enlargement, and enrichment
– Apprenticeship and continuing education
– Committee participation
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 Employee Development Programs

• Job Rotation – The movement between different

jobs.
• Job Enlargement – Occurs when the employee is
doing different tasks within the same job. Adding
more tasks gives employees a variety of
responsibilities that require the same level of skill.
• Job Enrichment – Increases the depth of a job by
adding responsibilities such as planning,
organizing, controlling, and evaluation.
 Internal Mobility

• Promotions
• Demotions
• Relocations
• Transfers
 Dual-Ladder Programs
Identify meaningful career paths for people who are not
interested in traditional management roles. The employee can
earn as much as they would in a management position.
Level 5 Level 5
Chief Information Officer Senior Technical Specialist

Level 4 Level 4
Director Technical Specialist

Level 3 Level 3
Department Head Technical Lead

Level 2
Senior Information Systems Specialist

Level 1
Information Systems Specialist

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 Succession and Replacement Planning

Succession Replacement
• Long-term; 12-36 • Short-term; 0-12
months. months.
• Focuses on • Focuses on
leadership talent for immediate needs.
the future. • Develops back-up
• Develops leaders staff for key
capable of filling positions.
multiple assignments.

Fast-track programs speed the development of

potential leaders.
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 Leadership and Management

• Leadership requires alignment to the

organization’s vision and mission.
– Leaders influence others toward the achievement of
goals, act as change agents, serve by example, and
develop other leaders.
• Management is about coping with day-to-day
operations.
– Brings order and consistency to the organization.
– Establishes systems and structures that get results.

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 Leadership and Management

• Leadership • Management
– Produces useful change
– By itself never keeps an
operation on time and
on budget year after
year
– Establishes direction
– Aligns people
– Motivates and inspires
– Can create orderly
results that keep
something working
efficiently
– By itself never creates
significant, useful
change
– Planning, budgeting,
organizing, staffing,
controlling and
problem solving
 Leadership Practices

• Challenging the process – Leaders seek challenge

and take risks.
• Inspiring a shared vision – Successful leaders have
a vision.
• Enabling others to act – Enlist the support of
others and empower them to do good work.
• Modeling the way – Leaders must lead the way.
• Encouraging the heart – Leaders encourage the
heart of their followers to carry on despite
adversity.
 Preparing Potential Leaders

• Challenging assignments early in a career

• Visible leadership role models who were either
good or bad
• Assignments that broadened knowledge and
experience
• Special projects
• Formal training projects
• Attendance at meetings outside a person’s core
responsibility
 Management Development

Three main components or strategies used

to provide management development:
• Management education
• Management training
• On-the-job experiences

84
 Obstacles to Leadership Development

• Slowly developing crises (as opposed to explosive

crises that seem to call forth leadership talents)
• Suppressive effects of large and complex
organizations
• Prestige of specialist professional training
• Educational system rewards that value individual
performance over teamwork
• Negative publicity often associated with high
visibility
 Trait Theories

• Early approaches focused on the qualities of

leaders and held that leaders were born not made.
• The “Great Person” theory of leadership
• Five personal traits of effective leaders
– Intelligence
– Dominance
– Self-confidence
– High levels of energy and activity
– Task-relevant knowledge
 Leadership Styles

• Transactional: • Transformational:
– Offers promise of – Provides vision and
reward or threat of sense of mission.
discipline. – Communicates high
– Looks for deviation expectations.
from rules. – Promotes intelligence
– Intervenes when and problem solving.
standards are not met. – Gives personal
– Abdicates responsibility attention and coaches.
and avoids making
decisions.

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 Performance Management
• The process of maintaining or improving
employee job performance through the use of
performance assessment tools, coaching, and
counseling as well as providing continuous
feedback.
• The performance review process is the
opportunity for the employee and the manager
discuss development goals and jointly create a
plan for achieving those goals.
 Objectives of PM
• The main objectives of a performance appraisal system are:

i.) To increases the employee effectiveness by helping them understand

their role better.

ii.) To help the employees understand their strengths and weakness in the
current role.

iii.) To help the managers in identifying the training needs of their sub-
ordinates.

iv.) To improve the relationship between the line manager and his team
members by making them realize that they are dependent on each other
for better performance.
• v.) To help the line mangers and their team members in improving the
communication by discussing the problem in achieving the targets and
finding the potential solutions.

vi.) To provide the employee an opportunity for self evaluation and self
development which are important to achieve the goals.

vii.) To prepare the employees for higher roles.

viii.) To create a positive work atmosphere.

ix.) To collect the information about each employee through personal

meeting which is useful in making managerial decisions.
 Performance Management System

Drives business results that accomplish the goals

of the organization.
Organizational values and goals

Performance management standards

Employee performance/behaviors

Measurement and feedback

Business results and employee growth

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 Performance Management Standards

• In setting and communicating performance

standards, the HR professional needs to consider:
– Behaviors – What does the organization want
employees to do?
– Results – What does the organization want the
employees to produce?
 Fostering a High-Performance
Workplace

Organizations must provide:

• Executive support. • Performance
• Challenging work management training.
environment. • Continual feedback.
• Employee engagement • Consistent
activities. management practices.
• Resources and tools. • Manager
accountability.

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 Performance Appraisals

• Accomplish three • Are used to:

purposes: – Improve productivity
– Provide feedback and through constructive
counseling feedback
– Help in allocating – Identify training needs
rewards and – Communicate
opportunities expectations
– Help in determining – Foster commitment and
employees’ aspirations mutual understanding
and planning
developmental needs
 Individual Performance Appraisals

1. Observe employee performing

the job.

5. Set goals for performance 2. Identify and record strengths and

improvement. areas for improvement.

4. Provide reinforcing and 3. Rate employee on progress toward

corrective feedback on previously stated objectives.
employee performance.

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 Group Performance Appraisals
• Use standards that are applied evenly across the
group rather than appraisals for individuals.
• Can be beneficial in conjunction with the concept
of self-directed work teams.
• Well-phrased praise is a very effective reward.
• The information employees receive should never
be a surprise to the employee.
• To ensure effectiveness, appraisals and
evaluations, whether individual or group, should
be conducted continuously, not as an annual event.
 Appraisal Methods
• Category rating
– Simple marking of
performance level
– Graphic scale, checklist,
forced choice
• Comparative
– Compares performance
of employees
– Ranking, paired
comparison, forced
distribution
• Narrative methods
– Written narrative
appraisals
– Essay, critical incidents,
field review
• Special methods
– Designed to overcome
appraisal difficulties
– MBO and BARS
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 Category Rating Methods

• Graphic scale – Most commonly used. Ex: A five-

point rating scale where 1 is lowest, 3 is standard,
and 5 is highest.
• Checklist – Appraiser uses a list of statements and
checks the items on the list that describe employee
performance.
• Forced choice – Variation of the checklist method.
Appraiser is required to check two of four
statements: one the employee is “most like”, the
other the employee is “least like”.
 Comparative Methods
• Ranking – Appraiser lists all employees from
highest to lowest.
• Paired comparison – Each employee is paired with
every other employee and compared, one at a
time, using the same scale for performance.
• Forced distribution – Appraiser is forced to rate
and place employees at different percentage points
along a bell-shaped curve.
– Since some employees must be placed in the lowest
section and some employees must be placed in the
highest section, the limitation of this method is that it
can be difficult for the manager to explain the
employee’s position on the curve.
 Narrative Methods

• Essay – Appraiser writes a short essay describing

employee’s performance.
• Critical incidents – A record is kept in addition to
actual ratings of both positive and negative
employee actions.
• Field review – The supervisor and HR cooperate
in rating the employee.
 Special Methods

• Management by Objectives (MBO) – Employees

help set their objectives, defining what they intend
to achieve. Objectives are based on the overall
organizational goals.
• Behaviorally anchored rating scale (BARS) –
Designed to combat the problems of category
ratings by describing examples of desirable and
undesirable behavior. Examples are then
measured against a scale of performance levels.
Works best when many employees are performing
the same task. Requires extensive time and energy
to develop and maintain.
Errors in Performance Appraisal

Halo/horn

Contrast Recency

Central
tendency
Errors Primacy

Leniency Bias

Strictness

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 Errors in Performance Appraisals

• Halo/horn effect – Halo effect may occur when an employee

is extremely competent in one area and therefore is rated high
in all categories. Horn effect may occur when one weakness
results in an overall low rating.
• Recency – Occurs when an appraiser give more weight to
recent occurrences and discounts the employee’s earlier
performance.
• Primacy – Occurs when an appraiser gives more weight to the
employee’s earlier performance and discounts recent
occurrences.
• Bias – When an appraiser’s values, beliefs, or prejudices
distort ratings.
 Errors in Performance Appraisals

• Strictness – When appraisers believe that standards are too

low and they inflate the standards in an effort to make the
standards more meaningful in their eyes.
• Leniency – When appraisers believe that standards are too
high and they inflate the employee’s performance.
• Central tendency – Occur when an appraiser rates all
employees within a narrow range, regardless of differences in
actual performance.
• Contrast error – Occurs when an employee’s rating is based
on how his or her performance compares to that of another
employee instead of on objective performance standards.
 Legal Performance Appraisals

• Performance appraisal methods must be:

– Valid and free of discrimination.
– Based on formal evaluation criteria.
– Based on personal knowledge and interaction
with employees.
– Designed to prevent one manager from over
influencing an employee’s career.
– Based on equitable treatment of all employees.

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 Appraisal Feedback Guidelines

• Describe the behavior; don’t judge it.

• Assume an attitude of helpfulness.
• Empathize and listen actively.
• Give specific examples.

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