Human Resource Management

Module 8
Performance
Management and
Appraisal
Today’s Learning Objectives
• Describe the performance appraisal process.
• Define the pros and cons of performance
appraisal methods.
• Give examples of potential appraisal problems
and how to deal with them.
• List steps to take in the appraisal interview.
• Explain key points in how to use the appraisal
interview to boost employee engagement.
• Explain how you would take a performance
management approach to appraisal.
Describe the appraisal process.
Basics of Performance Appraisal
• The performance appraisal process steps
1. Sets work standards
2. Assesses performance
3. Provides feedback to the employee
 Why Appraise Performance?
Five reasons:
1. Used for pay, promotion, and retention decisions
2. Links performance management to company goals
3. The manager can correct deficiencies and
reinforce strengths
4. With appraisals employee’s can review career
plans
5. Training needs are identified
Defining the Employee’s Goals and
Performance Standards
1. Goals
2. Job dimensions or Traits
3. Behaviors or Competencies
Improving Performance: HR as a
Profit Center

Setting Performance Goals at Ball Corporation

Let’s talk about it…

Improving Performance: HR Tools for
Line Managers and Small Businesses

How to set Effective Goals

Let’s talk about it…

Who should do the appraising?
1. Peer Appraisals
2. Rating Committees
3. Self Ratings
4. Appraisal by Subordinates
5. 360-Degree Feedback
Discuss the pros and cons of at
least eight performance
appraisal methods.
Techniques for Appraising
Performance (1 of 2)
1. Graphic Rating Scale
2. Alternation Ranking
3. Paired Comparison
4. Forced Distribution
5. Critical Incident Method
Techniques for Appraising
Performance (2 of 2)
6. Narrative Forms
7. Behavior Anchored Rating
Scale
8. Mixed Standards Scales
9. Management by
Objectives (MBO)
Additional Techniques
• Conversation Days
• Appraisal in Practice
Trends Shaping HR: Customized
Talent Management

Appraisal Methods being Customized

Let’s take a look…

Components of RPM

• No once a year reviews, no 360 degree feedback tools.

• Once a year goals are too batched for real-time world, and conversations about year
end ratings are generally less valuable
• Its hallmarks are speed, agility, onesize- fits-one, and constant learning
The Model

Source: R&R Dashboard as of P1

Note: Includes service anniversary awards
Improving Performance: The Strategic
Context

TRW’s New Global Performance Appraisal /

Management System

Let’s take a look…

 Give examples of potential
appraisal problems and how to
deal with them.
Dealing with Rater Error Appraisal
Problems
• Potential appraisal problems
‒ Unclear standards
‒ Halo Effect
‒ Central Tendency
‒ Leniency or Strictness
‒ Recency Effects
The Need for Fairness (1 of 4)
Figure 9-10 Checklist of Best Practices for
Administering Fair Performance Appraisals
• Base the performance review on duties and standards
from a job analysis.
• Try to base the performance review on observable job
behaviors or objective performance data.
• Make it clear ahead of time what your performance
expectations are.
• Use a standardized performance review procedure for all
employees.
The Need for Fairness (2 of 4)
• Make sure whoever conducts the reviews has
frequent opportunities to observe the employee’s
job performance.
• Either use multiple raters or have the rater’s
supervisor evaluate the appraisal results.
• Include an appeals mechanism.
• Document the appraisal review process and
results.
The Need for Fairness (3 of 4)
• Discuss the appraisal results with the employee.
• Let the employees know ahead of time how you’re
going to conduct the reviews.
• Let the employee provide input regarding your
assessment of him or her.
• Indicate what the employee needs to do to
improve.
The Need for Fairness (4 of 4)
• Train the supervisors who will be doing the
appraisals. Make sure they understand the
procedure to use, how problems (like leniency and
strictness) arise, and how to deal with them.
Know Your Employment Law

Appraising Performance

Let’s take a look…

List steps to take in the
appraisal interview.
Managing the Appraisal Interview
• Appraisal Interview – an interview in which the
supervisor and subordinate review the appraisal
and make plans to remedy deficiencies and
reinforce strengths.
How to Conduct the Appraisal
Interview
• Prepare
• Plan
• Measure Success
• Date to Complete
• Coach
Guidelines to Conducting the
Appraisal Interview
• Objective data
• Don’t get personal
• Encouragement
• Agreement
How to Handle a Defensive
Subordinate
• Recognize behavior
• Never Attack defenses
• Postpone Action
• Recognize Limitations
How to Criticize a Subordinate
How to Handle a Formal Written
Warning
Explain key points in how to
use the appraisal interview to
boost employee engagement.
Explain how you would take a
performance management
approach to appraisal.
Performance Management
• Performance Management – is the continuous
process of identifying, measuring, and developing
the performance of individuals and teams and
aligning their performance with the organization’s
goals.
Total Quality Management and
Performance Appraisal
• Cease Dependence
• Continuous Improvement
• Extensive Training
• Drive out Fear
• Remove Barriers
• Self Improvement
What is Performance Management?
Trends Shaping HR: Digital and
Social Media

Digital Technology use in Performance

Management

Let’s take a look…

Improving Performance: HR Practices
Around the Globe

Performance Management at General Dynamic

Armament Systems (GDAS)

Let’s talk about it…

The Managers Role in Performance
Management
Human Resource Management
Module 09
Learning Objectives
 Discuss what employers and supervisors can do
to support employees’ career development
needs.
 Explain why career development can improve
employee engagement.
 Describe a comprehensive approach to retaining
employees.
 List and briefly explain the main decisions
employers should address in reaching promotion
and other employee life-cycle career decisions.
 Explain each of the main grounds for dismissal.
 Describe what employers and
supervisors can do to support
employees career development
needs.
Career Management
• Career
• Career Management
• Career Development
• Career Planning
Career Management
• Career – Occupational Positions a person has had over
many years
• Career Management – Process for enabling employees to
better understand and develop their career skills and
interests, and to use these skills and interests more
effectively.
• Career Development – Lifelong series of activities that
contribute to a person’s career exploration, establishment,
success, and fulfillment
• Career Planning – Deliberate process through which
someone becomes aware of personal skills, interests, and
other characteristics and establishes action plans to attain
specific goals
Employee’s Role in Career
Management
You are the driver of your own car

You are the driver of your own career

If you could have any kind
of job, what would it be?
Career Development – Role Play
Scenario – Raj has been with Bharat LLC for 5 years. He has always gotten good performance reviews. Raj has always wanted to do more, but
does not see any roles that can advance to. Raj has always wanted to learn more about (Marketing Insights) but has no idea where to start. He
knows that these roles exist, but is not sure how to get a position like that.
Manager is having a conversation with Raj at the completion of the performance review

Manager – Well Raj, another good performance. Today I want to talk about something a little different than we have in the past. I want to have
a conversation about whether or not you are interested in career development.

Raj – I really never thought about it. I like what I do.

Manager – Do you have any long term goals?

Raj – I always thought that being a (marketing insights consultant) would be really interesting

Manager – I can see that. What do you see your next steps to be to get to that position?
Raj – I’m not sure. May be…….Market Research

Manager – That would be a good step. I think another good next step for you would be….. Enhancing industry knowledge (may be one specific
industry – Banking)

Raj – Oh
Manager – Off the top of your head, what skills or experience do you think you need to get to that next level?
Raj – I probably need better computer skills. I might need to learn more about the position too. I am not sure what else.

Manager – I know that position needs (skills)… and (skill). I will note those things down on this document. We will set up a meeting as a next
step to talk further about more specific things that you can do to prepare for the next role.

Raj – I think that is something I may be able to do. Can I get back to you on that?
Manager – Ok thanks Raj. This was really a great conversation. I am going to set up a meeting on our calendar to talk about the next steps.
Manager – I want you to review this document before the meeting. You don’t have to fill it out, we can do that together, but I want you to start
thinking about it. I want you to think about your strengths, things you are good at that we can leverage for that next role. Then think about 2-3
things you think you can focus on developing to get to the next role. Don’t worry now about the SMART goals, we can do those together.

Manager – Thank you Raj.

Employer’s Role in Career Management

• Training
• Planning Workshops
• Career Coaches
Employer’s Role in Career
Management

• Manager
• Mentor
• Coach
• Guide
Employer’s Role in Career
Management

• Manager – Managing

• Mentor – Advising, counselling and guiding

• Coach – Educating, Instructing, and training

The Manager as Mentor and Coach
Coaching and Mentoring
1. Set High Standards
2. Invest The Time
3. Actively Steer Mentees
4. Requires Trust
5. Professional Competence
6. Consistency
7. Ability to Communicate
8. Share Control
Steps to Maintaining a Successful
Mentor-Mentee Relationship
1. Establish specific goals for both mentee and mentor.

2. Establish ground rules for accountability, confidentiality, and boundaries

up front.

3. Create a workable plan with timelines to accomplish both short-term

and long-term goals.

4. Set aside time to meet at regular intervals to assess progress and

provide feedback.

5. Be open to criticism, be respectful, and listen attentively to each other.

6. Regularly reflect on the relationship with regard to what is working or not

working and what challenges remain to be addressed.
Mentoring Leadership
Improving Performance – Case Study
 Explain why career
development can improve
employee engagement.
Employee Engagement Guide for
Managers
1. Career Management
2. Commitment-Oriented
Career Development Efforts
Career Development
Describe a comprehensive
approach to retaining
employees
Managing Employee Turnover and
Retention
Managing Voluntary Turnover
A Comprehensive Approach to
Retaining Employees
• Exit Interviews
• Attitude Surveys
• Open door / Hotlines
• Stay Interviews
Trends Shaping HR: Digital and
Social Media

Employee Retention

Let’s take a look…

Job Withdrawal
List and briefly explain the main
decisions employers should
address in reaching promotion
and other employee life-cycle
career decisions.
Employee Life-Cycle Career
Management
Making Promotion Decisions
1. Is seniority or competence the rule?
2. How should we measure competence?
3. Is the process formal or informal?
4. Vertical, horizontal, or other?
Know Your Employment Law

Establish Clear Guidelines for Managing

Promotions

Let’s take a look…

Steps To Eliminate the Barriers for
Women
1. Eliminate Barriers
2. Improve Networking and Mentoring
3. Break The Glass Ceiling
4. Adopt Flexible Career Tracks
Managing Transfers
Managing Retirement
Explain each of the main
grounds for dismissal.
Managing Dismissals
Grounds for Dismissal
1. Unsatisfactory Performance
2. Misconduct
3. Lack of Qualifications for the Job
4. Changed Requirements of the Job
5. Insubordination
Fairness Safeguards
1. Allow a Full Explanation
2. Multistep procedure / Appeal process
3. Person who does the dismissal
4. Severance Pay
Avoiding Wrongful Discharge Suits
• Wrongful Discharge – (or termination) occurs
when an employee’s dismissal does not comply
with the law or with the contractual arrangement
stated or implied by the employer.
Security Measures & Supervisor
Liability
The Exit Process and Termination
Interview (1 of 2)
1. Plan the interview carefully
2. Get to the point
3. Describe the situation
4. Listen
5. Review the severance package
6. Identify the next step
The Exit Process and Termination
Interview (2 of 2)
• Outplacement Counseling
• For The Employee
• Exit Interview
• The Exit Process
Layoffs & The Plant Closing Law
Adjusting to Downsizing and Mergers
1. The right people are
released
2. Compliance with Law
3. Just and Fair
4. Security
5. Reducing Uncertainty
Human Resource Management

Module 10
Establishing
Strategic Pay
Plans
Learning Objectives
 List the basic factors determining pay rates.
 Define how to conduct a job evaluation.
 Explain in detail how to establish a market-
competitive pay plan.
 Explain how to price managerial and professional
jobs.
 Explain the difference between competency-
based and traditional pay.
 Describe the importance of total rewards for
improving employee engagement
List the basic factors
determining pay rates
Basic Factors in Determining Pay
Rates
Two main components of employee compensation:
1. Direct – Wages, Salaries, Incentives, Commissions,
bonuses
2. Indirect – Employer paid insurance, Paid Vacation
Factors influencing Pay
• Aligned Reward Strategy - Creating a
compensation package that produces the
employee behaviors the firm needs to achieve
its competitive strategy.

• Total rewards encompass traditional pay,

incentives, benefits, but also rewards such as
challenging job, career development, and
recognition.
Factors influencing Pay
• Equity Theory of Motivation - Equity theory is
based in the idea that individuals are motivated by
fairness, and if they identify inequities in the input
or output ratios of themselves and their referent
group, they will seek to adjust their input to reach
their perceived equity.

John gets paid a lot more than me, but doesn't do nearly as much work

I get paid a lot less than Jane, but this place couldn't operate without me
Equity and its Impact on Pay Rates
Type of Equity
1. External
2. Internal
3. Individual
4. Procedural
Legal Considerations in Compensation
• Employees compensation act (1923)
• Minimum Wages Act (1948)
• Provident Funds Act (1952)
• Payment of Bonus Act (1965)
• Gratuity Act (1972)
• Equal Remuneration Act (1976)
• Code on Wages Bill (2017)
Know Your Employment Law

Overwork
Number of work hours
Pay Polices
• Seniority-based
• Performance
• Other pay policies
• Geography
Improving Performance: The
Strategic Context
Improving Performance: HR Practices
Around The Globe

Compensating Expatriate Employees

1. Home-based plan
2. Host-based plan
Define how to conduct a job
evaluation
Job Evaluation Methods
Employers use two basic approaches to setting pay
rates:
• Market-Base – Formal or informal surveys to
determine what others are paying
• Job Evaluation – Worth of one job relative to other

• Compensable Factors – A fundamental,

compensable element of a job, such as skill, effort,
responsibility, and working conditions.
Job Evaluation Methods
Point Method: Job evaluation in which a number of
compensable factors are identified and then the
degree to which each of these factors is present on
the job is determined.

Benchmark Job: Job that is used to anchor the

employer’s pay scale and around which other jobs
are arranged in order of relative worth.
Preparing for the Job Evaluation
1. Identify the Need
2. Get Employees Cooperation
3. Choose Evaluation Committee
4. Perform the Evaluation
Job Evaluation Methods: Ranking (1 of 2)
1. Obtain job information
2. Select and group jobs
3. Select compensable factors
4. Rank jobs
5. Combine ratings
6. Compare current pay with what others are paying
based on salary surveys
7. Assign a new pay scale
Job Evaluation Methods: Ranking (2 of 2)
Table 11-2 Job Ranking at Jackson Hospital

Ranking Order Our Current Annual What Others Pay: Our Final
Pay Scale Salary Survey Pay Assigned Pay
1. Office manager $43,000 $45,000 $44,000
2. Chief nurse 42,500 43,000 ​ 42,750
3. Bookkeeper 34,000 36,000 35,000
4. Nurse 32,500 33,000 32,750
5. Cook 31,000 32,000 31,500
6. Nurse’s aide 28,500 30,500 29,500
7. Orderly 25,500 27,000 27,000

Note: After ranking, it becomes possible to slot additional jobs (based on overall job
difficulty, for instance) between those already ranked and to assign each an appropriate
wage rate.
 Explain in detail how to
establish a market-competitive
pay plan
How to Create a Market-Competitive
Pay Plan
1. Choose Benchmark Jobs
2. Select Compensable Factors
3. Assign Weights to Compensable Factors
4. Convert Percentages to Points for Each Factor
Creating a Market-Competitive Pay
Plan (1 of 3)
5. Define Each Factor’s Degrees
6. Determine For Each Factor Its Factor Degrees’
Points
7. Review Job Descriptions and Job Specifications
8. Evaluate the Jobs
Creating a Market-Competitive Pay
Plan (2 of 3)
9. Draw the Current (Internal) Wage Curve
10. Conduct a Market Analysis: Salary Survey
11. Draw the Market (External) Wage Curve
12. Compare and Adjust Current and Market Rates
for Jobs
Creating a Market-Competitive Pay
Plan (3 of 3)
13. Develop Pay Grades
14. Establish Rate Ranges
15. Address Remaining Job
16. Correct Out-of-Line Rates
• Underpaid / Red circle
Explain how to price managerial
and professional jobs.
Pricing Managerial and Professional
Jobs
What Determines Executive Pay
1. Job Complexity
2. The Employer’s Ability to Pay
3. The Executive’s Human Capital
Compensating Executives
1. Base Pay
2. Short-term Incentives
3. Long-term incentives
4. Executive Benefits and Perks
Compensating Professional
Employees
Explain the difference between
competency-based and
traditional pay
Contemporary Topics in Compensation
Competency-Base Pay
1. Defines Skills
2. Choose Method
3. Training system
4. Formal Testing
5. Design Work
Broadbanding
Broadbanded Structure and
How It Relates to Traditional
Pay Grades and Ranges
Executive Pay
• Dodd-Frank Act (2010)
• Sarbanes-Oxley Act (2002)
• Company Act (2013)
Describe the importance of total
rewards for improving
employee engagement
Employee Engagement Guide For
Managers
• Total Reward Programs
• Total Reward and
Employee Engagement
Trends Shaping HR: Total Rewards
• Recognition • Dupont

• Google
• Gift Cards
• Deloitte
• Fitness benefits
• Disney
• Childcare
• NETAPP
• Sabbaticals
• Coca Cola
• Career development
• Microsoft

• Incentives • AT&T

• Bonus • Boeing

• Training • Intel

• General Motors
• Goodies
• Fedex
• Free Food, Snacks
• Capital One
• Post Retirement Benefits
• Verizon
• Perks
• Costco
Human Resource Management

Module 11
Pay for
Performance and
Financial
Incentives
Learning Objectives (1 of 2)
12-1. Explain how you would apply four motivation
theories in formulating an incentive plan.
12-2. Discuss the main incentives for individual
employees.
12-3. Discuss the pros and cons of commissions
versus straight pay for salespeople.
Learning Objectives (2 of 2)
12-4. Describe the main incentives for managers
and executives.
12-5. Name and describe the most popular
organization-wide incentive plans.
12-6. Explain how to use incentives to improve
employee engagement.
 I.
Explain how you would apply
four motivation theories in
formulating an incentive plan.
Money and Motivation
Incentive Pay Terminology
• Pay-for Performance
• Variable Pay
• Profit Sharing
Linking Strategy, Performance, and
Incentive Pay
Motivation and Incentives
Theories that have relevance to designing incentive
plans
• Motivators and Fredrick Herzberg
• Demotivators and Edward Deci
• Expectancy Theory and Victory Vroom
• Behavior Modification / Reinforcement and B.F.
Skinner
Know Your Employment Law

Employee Incentives
and the Law

Let’s take a look…

 II.
Discuss the main incentives for
individual employees.
Individual Employee Incentive and
Recognition Programs
• Piecework plans
– Straight piecework
– Standard hour plans
– Pros and Cons
Merit Pay as an Incentive
• Merit pay as an incentive
– Differential pay increases
– Merit pay options
Incentive for Professional Employees
Non-financial and Recognition-Base
Awards
• Social Recognition
• Performance Feedback
Trends Shaping HR: Digital and
Social Media (1 of 2)

Recognition Programs

Let’s take a look…

Improving Performance: HR Tools for
Line Managers and Small Businesses

Financial Incentives for Motivation

Let’s talk about it…

List of Recognition
FIGURE 12-1 Social Recognition and Related Positive Reinforcement Managers Can Use

• Challenging work assignments • Being provided with ample

• Freedom to choose own work encouragement
activity • Being allowed to set own goals
• Having fun built into work • Compliments
• More of preferred task • Expression of appreciation in front of
• Role as boss’s stand-in when he or others
she is away • Note of thanks
• Role in presentations to top • Employee-of-the-month award
management • Special commendation
• Job rotation • Bigger desk
• Encouragement of learning and • Bigger office or cubicle
continuous improvement
Source: Based on Bob Nelson, 1001 Ways to Reward Employees (New York: Workman Pub, 1994), p.
19; Sunny C. L. Fong and Margaret A. Shaffer, "The Dimensionality and Determinants of Pay
Satisfaction: A Cross-Cultural Investigation of a Group Incentive Plan," International Journal of Human
Resource Management 14, no. 4 (June 2003), p. 559 (22).
Job Design
Improving Performance: The
Strategic Context

The Fast-Food Chain

Let’s talk about it…

 III.
Discuss the pros and cons of
commissions versus straight
pay for salespeople.
Incentives for Salespeople
1. Align how to measure and reward
2. Align with Strategic Goals
Types of Sales Incentive Plans
1. Salary plan
2. Commission plan
3. Combination plan
Maximizing Sales Force Results
• Set Effective Quotas
• Distinguish Among Performers
Sales Incentives in Action
Trends Shaping HR: Digital and
Social Media (2 of 2)

Commission Sales

Let’s take a look…

 IV.
Describe the main incentives
for managers and executives.
Incentives for Managers and
Executives
• Short-term Incentives
• Long-term incentives
Strategy and the Executive’s Long-
Term and Total Rewards Package
• Sarbanes-Oxley Act
• Short-term incentives
and the Annual bonus
– Eligibility
– Fund size
– Individual awards
– Stock options
– Ethics
Improving Performance: HR Practices
Around the Globe

International HR – Stock options

Let’s talk about it…

Some Other Executive Incentives
 V.
Name and describe the most
popular organization-wide
incentive plans.
Team and Organization-Wide
Incentive Plans (1 of 2)
• How Designing Team Incentives
• Evidence-Based HR: Inequities That Undercut
Team Incentives
Organizational – Wide Plans
• Profit-sharing plans
• Scanlon plans
• Other Gainsharing Plans
• At-Risk Pay Plans
• Employee Stock Ownership Plans
Team and Organization-Wide
Incentive Plans (2 of 2)
• Profit-sharing plans
• Scanlon plans
• Other gain-sharing plans
• At-risk pay plans
• Employee stock ownership plans
Incentive Plans in Practice: Nucor
• The production incentive plan at Nucor steel also
has a:
– Department manager incentive plan
– Professional and clerical bonus plan
– Senior officer incentive plan
 V.
Explain how to use incentives
to improve employee
engagement.
Employee Engagement Guide for
Managers
• Incentives and Engagement
– Measure the extent to which supervisors are
encouraging their subordinates to be engaged
– Use incentives to reward supervisors for
improving employee engagement
Human Resource Management

Module 12
Building Positive
Employee
Relations
Learning Objectives
 Define employee relations
 Discuss methods for managing employee
relations
 Explain what is meant by ethical behavior
 Explain what is meant by disciplinary practices
 How do companies become Best Companies to
Work for?
What is Employee Relations
Divide and rule: Workplace Bullying

Let’s discuss…
What is Employee Relations?
• Employee Relations – is the activity that
involves establishing and maintaining the positive
employee-employer relationships that contribute
to satisfactory productivity, motivation, morale,
and discipline, and to maintaining a positive,
productive, and cohesive work environment.
Employee Relations Programs For Building
and Maintaining Positive Employee Relations

Fair Treatment
• Procedural Justice
• Distributive Justice
Bullying and Victimization
1. Imbalance of Power
2. Intent to Cause Harm
3. Repetition

• Verbal: name-calling, teasing

• Social: spreading rumors, leaving people out on purpose,
breaking up friendships
• Physical: hitting, punching, shoving
• Cyberbullying: using the Internet, mobile phones, or other digital
technologies to harm others
Improving Employee Relations
Through Communication Programs
• Different Types – open door policy, employee
handbook, intranet, two-way communication, focus
group discussions, ombudsman, suggestion boxes
• Organizational Climate Surveys – Perception that
the employees share about the firms psychological
environment ex: Wellbeing, supervisory behavior,
flexibility, appreciation, ethics, empowerment,
rewards etc.
Develop Employee Recognition /
Relations Programs
Use Employee Involvement Programs
Focus Groups
Using Employee Involvement Teams
• Suggestion Teams
• Problem-Solving Teams
• Quality Circle
• Self-Managing / Self-
Directed Work Team
• Suggestion Systems
Explain what is meant by
ethical behavior
Go Out of Business or Risk Surviving?

Let’s discuss…
Ethics and Employee Rights
What Shapes Ethical Behavior at
Work?
• Three factors combine to determine the ethical
choices we make
– The person (bad apples)
– Situations (bad cases)
– Company Environment (bad barrels)
 Pressures
 Organizational culture
How Managers Can Create More
Ethical Environments
• Reduce Pressures
• “Walk The Talk”
How Human Resource Managers Can
Create More Ethical Environments (1 of 2)
• Institute Ethical Polices and Codes
• Enforce The Rules
• Encourage Whistleblowers
• Foster The Right Culture
How Human Resource Managers Can
Create More Ethical Environments (2 of 2)
• Hire Right
• Use Ethics Training
• Use Rewards and Discipline
• Institute Employee Privacy Policies
Explain what is meant by fair
disciplinary practices.
Firing Employees for Their Social Media
Posts: Ethical and Legal Issues

Let’s discuss…
Managing Employee Discipline
The Three Pillars of Fair Discipline
1. Rules & Regulations
2. Progressive Penalties
3. Appeal Process
How to Discipline an Employee (1 of 5)
1. Make sure the evidence supports the charge of
employee wrongdoing.
2. Make sure to protect the employees’ due process
rights.
3. Adequately warn the employee of the disciplinary
consequences of his or her alleged misconduct.
4. Have the employee sign form.
How to Discipline an Employee (2 of 5)
5. “Reasonably Related” to the efficient and safe
operation of the environment.
6. Objectively investigate the matter.
How to Discipline an Employee (3 of 5)
7. “The Investigation should produce substantial
evidence of misconduct.
8. Apply applicable rules, orders, or penalties
without discrimination.
9. Maintain the employee’s right to counsel.
How to Discipline an Employee (4 of 5)
10. Keep Dignity.
11. Listen to what the person has to say.
12. Burden of Proof (employer).
How to Discipline an Employee (5 of 5)
13. Get the Facts.
14. Don’t Act while angry.
15. Adhere to your company’s disciplinary appeal
process.
Discipline Without Punishment
• Issue an oral reminder.
• Issue a formal written reminder and place in the
personnel file.
• Give “decision-making leave”.
• Dismissal if behavior repeats.
Answer the question, “How do
companies become ‘Best
Companies to Work For’?”.
Employee Engagement Guide For
Managers
• How Companies Become “Best Companies to
Work For”
• The Great Place to Work Institution defines a
great workplace
SAS: Great Benefits, Trust, and Work-
Life Balance
Google: Happiness and People
Analytics
FedEx: Guaranteed Fair Treatment
Human Resource Management

Module 13
Managing Global
Human
Resources
Learning Objectives
• List the HR challenges of international business.
• Illustrate with examples how inter-country differences
affect HRM.
• List and briefly describe the main methods for staffing
global organizations.
• Discuss some important issues to keep in mind in
training, appraising, and compensating international
employees.
• Discuss similarities and differences in employee
engagement around the globe
• Explain with examples how to implement a global human
resource management program.
List the HR challenges of
international business.
What is International Human
Resource Management?
• International Human Resource Management
(IHRM) - is the human resource management
concepts and techniques employers use to
manage the human resource challenges of their
international operations.
1. Managing Human resources in global companies
2. Managing expatriate employees
3. Comparing human resource management practices
The Manager’s Global Challenge
• The global employer faces these differences
– Political
– Social
– Legal
– Cultural
Adapting HR Activities to
Inter-Country Differences
Culture Factors
• The Hofstede Study
• Legal Factors
• Codetermination
Economic System
• Market
• Planned
• Mixed
HR Abroad Example: China
• Recruiting
• Selection
• Compensation
• Labor Unions
List and briefly describe the
main methods for staffing
global organizations.
Managing Diversity in a Chinese-
owned Multinational IT Firm

Let’s discuss…
Staffing the Global Organization
• International staffing: home or local?
– Expatriates (Expats)
– Home-Country Nationals (headquarters)
– Locals (host-country nationals)
– Third-Country Nationals (other than the parent/host)
International Staffing: Home or Local
• Using Locals
• Using expats
• Other solutions
• Offshoring
Management Values and International
Staffing Policy
• Ethnocentric practices
• Polycentric practices
• Geocentric practices
Ethics and Code of Conduct
Selecting International Managers
• Testing
• Realistic Previews
• Adaptability Screening
• Legal Issues
• Avoiding early expatriate returns
• Family pressures
Diversity Counts Sending Women
Manager Abroad
Discuss some important issues
to keep in mind in training,
appraising, and compensating
international employees.
Closing the Gulf – Preparing US
Executives for Assignments in
Mexico

Let’s discuss…
Training and Maintaining Employees
Abroad (1 of 2)
• Orienting and training employees on international
assignment
• Performance Appraisal of International managers
• Compensating managers abroad
– The balance sheet approach
– Incentives
Steps in Establishing A Global Pay
System
Step 1. Set Strategy (long-term strategic goals to
boost productivity)
Step 2. Identify crucial executive behaviors (actions
to achieve strategic goals)
Step 3. Global philosophy framework (pay
component, salary, bonus, incentives)
Step 4. Identify gaps
Step 5. Systematize pay systems (Consistent
assessment practices)
Step 6. Adapt pay policies (Review your practices)
Training and Maintaining Employees
Abroad (2 of 2)
• Union Relations abroad
• Terrorism, Safety, and Global HR
• Taking Protective Measures
• Kidnapping and Ransom (K&R) insurance
• Repatriation: Problems and Solutions
 Discuss the similarities and
differences in employee
engagement around the globe.
Work–Life in the Global Village

Let’s discuss…
 Explain with examples how to
implement a global human
resource management program.
Managing HR Locally
Putting a Global HR System into Practice

Figure 17-2 B est Practices for

Creating Global HR Systems
Improving Performance: The Strategic
Context

Hitachi

Let’s talk about it…

Human Resource Management
Module 14 Managing Human
Resources in Small and
Entrepreneurial Firms
Learning Objectives
• Explain why HRM is important to small businesses
and how small business HRM is different from that
in large businesses.
• Give examples of how entrepreneurs can use
Internet & government tools to support the HR effort.
• List ways entrepreneurs can use their small size to
improve their HR processes.
• Discuss how you would choose and deal with a
professional employee organization.
• Describe how you would create a start-up human
resource system for a new small business.
Do you prefer to work in a big company or
small company?
Let’s compare small versus big organizations
Advantages of working in Small Firms
Difference between SME and Startup
 Explain why HRM is important
to small businesses and how
small business HRM is different
from that in large businesses
Startups per Country
Startups per Country
Startups Ecosystem Ranking
Startups Ecosystem
Startups Unicorn
India – Third largest in Unicorns
Startups Unicorn
Startups Unicorn
How Small Business HRM is Different
• Size
• Priorities
• Informality
• The Entrepreneur
• Implications
Diversity Counts Necessity and the
Entrepreneur
Why HRM is Important to Small
Business
• Positive Performance
• Customers
 Give examples of how
entrepreneurs can use Internet
and government tools to
support the HR effort.
Using Internet and Government Tools
to Support the HR Effort
• Complying with employment laws
– DOL / Ministry of Labour & Employment | GoI
– EEOC
– OSHA / Employment & Labour Law 2019
– Ministry of Skill Development and
Entrepreneurship (NSD)
• Employment planning and recruiting
– Web-based recruiting
Trends Shaping HR: Digital and
Social Media

Internet Recruiting

Let’s take a look…

Employment Selection
• Keep it in the industry
• Automate the Process
• Test Online
• Poll your inner circle
• Send a recording
• Comply with the Law
Employment Training
• Private vendors
• AIMA
• SHRM
• NIIT
• Skillsoft
Employment Appraisal and
Compensation
• Oracle’s ePerformance
• Halogen eAppraisal
• Zing HR HC Software
• Salary.com
Review
• Employment laws
• Planning and recruiting
• Selection
• Training
• Appraisal and compensation
• Safety and health
 List ways entrepreneurs can
use their small size to improve
their HR processes.
Leveraging Small Size with Familiarity,
Flexibility, Fairness, and Informality
• More Personal Familiarity
• Being Flexible
• Informal
• Simple, Informal Employee
Selection Procedures
Flexibility in Training
• Few career development
• Specific competencies
• Informal Methods (Covey)
Fairness and the Family Business
• Set the ground rules
• Treat People Fairly
• Confront Family issues
• Erase Privileges
Discuss how you would choose
and deal with a professional
employee organization.
Using Professional Employer
Organizations
• PEO’s
• HRO’s
• Employee /staff leasing
 Using Professional Employer
Organizations
1. How do PEOS work?
• PEOs vs. HROs
A PEO is a Professional Employer Organizer, basically a firm that has bundled
services that are performed for an organization. Services include benefits, payroll,
workers’ compensation, recruiting, and risk management

HRO stands for Human Resources Outsourcing and is an independent company

that provides some or all of a business’s HR needs. A HRO firm may provide
basic HR services or may offer detailed and strategic HR services, so it is
important for a company to research several HRO companies thoroughly before
making a selection
Using Professional Employer
Organizations
2. Why use a PEO?
• Lack of specialized HR support
• Paperwork
• Liability
• Benefits
• Performance
Using Professional Employer
Organizations
3. Caveats
• Warning signs
• Lax due diligence
Describe how you would create
a start-up human resource
system for a new small
business.
Managing HR Systems, Procedures,
and Paperwork
Managing HR Systems, Procedures,
and Paperwork
Basic components of manual HR systems
Basic Components of Manual HR
Systems
Table 18-1 Some Important Employment Forms

New Employee Forms Current Employee Forms Employee Separation

Forms
Application Employee Status Change Request Retirement Checklist
New Employee Checklist Employee Record Termination Checklist
Employment Interview Performance Evaluation COBRA Acknowledgment
Reference Check Warning Notice Unemployment Claim
Telephone Reference Report Vacation Request Employee Exit Interview
Employee Manual Probation Notice
Acknowledgment Job Description
Employment Agreement Probationary Evaluation
Employment Application Disclaimer Direct Deposit Acknowledgment
Employee Secrecy Agreement Absence Report
Disciplinary Notice
Grievance Form
Expense Report
401(k) Choices Acknowledgment
Injury Report
Managing HR Systems, Procedures,
and Paperwork
• Automating Individual HR Task
• Human Resources Information System (HRIS)
Reasons for Installing HRIS system
• Improved Transaction Processing – 71% of HR
employees devote time to transactional tasks such
as leave balances, address records, employee
benefits etc.
• Online self-processing – benefit systems lets
employees self-enroll in all their desired benefits
program.
Other Reasons for Installing HRIS
system
• Improved Reporting Capability – per person cost
like healthcare cost, pay and benefits, operating
expense, cost per hire, training, turnover rates.
• HR System Integration – Integrates record
keeping, payroll, appraisal. EX: Peoplesoft HRIS
Managing HR Systems, Procedures,
and Paperwork
• HRIS vendors
– Automated Data Process, Inc.
– Business Information Technology, Inc.
– Human Resource Microsystems,
– Lawson Software
– Oracle Corporation
– SAP America, Inc.
– PeopleSoft
Trends Shaping HR: Digital and
Social Media

HR on the Cloud

Let’s take a look…