HRM - Mba (PDF Library)

HUMAN RESOURCE
MANAGEMENT
Prof. Dr. Armin Trost
1
Professor Dr. Armin Trost
Born 1966 and raised in Tübingen/Germany

Studied psychology and business
administration in Tübingen and Mannheim
Doctoral degree from University of
Mannheim. Thesis about „Reliability of
Employee Survey Data“
More than five years in different functions of
Global Human Resource at SAP, lastly as
Global Head of Recruiting
In 2005 one semester full professorship for
HR and statistics at University of Applied
Sciences Würzburg
Since Wintersemester 2005 professor for
human resource management at Furtwangen
University
Contact: trost@hs-furtwangen.de
Prof. Dr. Armin Trost Human Resource Management, Hochschule Furtwangen, Copyright © 2006 www.armintrost.de 3
Recommended Books
Bohlander, G, Snell, S, Sherman, A, 2001, 12th ed. Managing

human resources, South-Western College Publishing, Ohio
Noe, R, Hollenbeck, J, Gerhart, B, Wright, P, 2004, Fundamentals
of human resource management, McGraw-Hill, Boston
Holtbrügge, D, 2004, Personalmanagement. Heidelberg, Springer
2
Overview
Introduction Performance Management
Job Analysis Compensation & Benefits
Employer Branding Training & Development
Sourcing
Candidate Selection
Introduction
3
Overview
Human Resource Management – Definition
Contribution of Human Resource Management to

the competitiveness of companies
Macrotrends, which drive future challenges of

Human Resource Management
Employees = Human Beings
Skills, Knowledge &

Experiences
Personality
Hidden
Potential (Talent)
Emotions
Needs &
Employee Expectations
Creativity,
Ideas
Social Relations,
Power to Friends & Family
work
Values &
Health
Believes
4
Human Resource Management
All planned and controlled activities

within an organization to shape the
relation between employees and the
company in order to meet both
business objectives and employee
expectations
From Problems to Solutions
What is the problem in terms of numbers? Who has

Problem the problem? How does the problem impact
competitiveness of the company?
What are the major causes and drivers of the

Causes problem? Which tendencies can be observed?
What would the problem cost the company if it would

Costs not be solved?
What is the core of the solution? How does the

Solution solution work? Which assumption should one make
belief the solution will work? What does the solution
cost?
What are the financial and intangible benefits of the
Benefit solution?
5
Example: Candidate Selection
23% of all new employees (100 new hires anually) do

need meet their performance expectations 6 months
Problem
after being employed
One cause could be seen in lacking quality (validity) of

Causes the candidate selection procedures used
Lost added value of 14.000 Euro per underperforming

employee: 23 Ees × 14.000 Euro/Ee = 322.000 Euro in 1.
Costs
year + future additional losses
Strutcturred interviews conducted through multiple

Solution interviewers lead to better prediction of future
performance. Additional costs per hire: 800 Euro (→
total: 80.000 Euro)
The solution can solve the problem by 32%. Benefit =

Benefit 32% × 322.000 Euro = 103.040 Euro
Typical Problems
Which capabilities do How can we achieve

we need on the long run required equity when
to stay competitive? determining individual
salaries while staying
We are not well know in competitive?
the labor market. The
best people prefer other Many employee aren‘t
employers willing and able to cope
with technological and
We do not get in touch disruptive advances
with the most talented
people How can we fully benefit
from the potential of our
Many new hires do not employees?
demonstrate expected
performance
6
Voice over Internet Protocol (VoIP) sets Telco
Industry under Pressure
What does this

mean for the
Human Resource
of traditional
companies in the
Telco industry?
Move from „tranformational“ to „tactic“ Tasks
In the US:
Labor ~40% of the entire labor market
Demand ~70% of jobs created since 1998
Future
Past
Tranformational Tactic
Tasks Tasks
According to McKinsey & Company
7
Changes in HR budget 1994-2003
Median Proportion of HR Budget

as Percentage of Operating Costs
1,2
1,1
0,9
0,8
0,7
0,6
94 95 96 97 98 99 00 01 02 03
Taken from: Bureau of National Affairs and the Society of Human Resources Management (2003)
Changing Generations and Industries
8
Population changes among 25-34-agers
Relative changes compared to 2005

125
China
120 Germany
India
115 USA Population in 2005 (in Mio.)
250
110 212
200 178
105 150
100
100
50 40
10
95 0
China India USA Germany
90 Source: U.S. Census Bureau, Population

2000 2005 2010 2015 2020 Division/International Programs Center (2006)
http://www.census.gov/ipc/www/idbsum.html
Major Challenges of Human Resource

Management
Globalization and global competition
Technological advancements
Change from the hand to knowlege worker
Fast changing markets
Cost pressure and productivity
Changing values in society
Demographic changes
9
Job Analysis
Overview
Target Group Segmentation
Definition: Job, Position
Linkage between job analysis with other human

resource management instruments
Methods of job analysis
Focus: Critical Incident Technique
Content and limitations of job descriptions
Dejobbing
10
Segmentation and Prioritization of Target Groups
Low availability/
hard to find/get
IIa I
Labour Availability
Market of Talents
III IIb
Good availability/
easy to find/get
Required but not Mission-

mission-critical critical
Relevance for
Company-Success
Size indicates Demand
Company Strategy
ABB Leadership Competency Model
11
Job – Position – Employee
Job Position Employee
Senior Specialist Senior Specialist CRM Garth McGrath
1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
Creativity Creativity Creativity
Teamwork Teamwork Teamwork
Presentation Presentation Presentation
Project Mgmt Project Mgmt Project Mgmt
Mobility Mobility Mobility
SAP R/3 SAP R/3
English English
Development Needs
Jobs, Positions and Employees
Employee
Job,
Position
Role
Organizational Job Family,

Units Tasks, Jobtitle
12
Job Description – Example: Account Manager
Summary Qualification/Requirements
Execute sales strategy, initiate – Basic sales skills
contact with existing and – Excellent written and verbal
potential customers, identify communication skills
their needs and sell appropriate – Demonstrates effective
merchandise to meet those negotiation and closing
needs. techniques
Duties and Responsibilities – Strong analysis and judgment
skills
– Manage assigned accounts
– Works well in a team
– Call prospective customers and environment
establish buying cycles,
customer needs, and create a
customer supplier relationship.
– Increase sales in respective Education/Training/
accounts
Experience
– Prepare sales information for
– High school diploma
customers
– Previous sales and
– Establish buying influences,
telemarketing experience a plus
budgets, and purchasing criteria
for assigned accounts
– Secure and place orders taking
into consideration delivery dates
and inventory levels for
fulfillment
Job Analysis Impacts different HR Activities
Personnel Candidate
Marketing Selection
Development Performance
Planning Appraisal
Job
Description
Compensation Employee Layoff
Job Analysis
13
During Recruiting Process a Job Description is
more or less a Matter of Communication
Hiring Vacancy
(Manager) (Manager)
Selection Briefing
(Recruiter) (HR Consultant)
Job Description
Application Job Analysis

(Candidate) (HR Consultant)
Job Posting Requisition

(Personnel (Recruiter,
Marketing) Manager)
Job Analysis Dimensions
What are major activities?

What are the job incumbent‘s responsibilities?
Who are the customers the job incumbent?
What are outcomes and resulting values of this job?
Which knowledge skills and competencies are required to do the job well?
Which mindset and intrinsic motivation is required to do the job well?
Which level of authority is given to the job incumbent?
Which physical abilities are required?
What are specific working conditions?
What is the daily working environment?
What are major interfaces in and outside the firm?
What are appealing elements of the job?
What are the downsides of the job?
14
Steps of a Job Analysis Process
Select the job to be analyzed and

Focus on systematically
relevant stakeholders selected jobs
Be clear about the purpose
Determine the desired applications of job analysis
of the job analysis
Systematically decide
upon application of
Decide upon job analysis methods methods
Use available background
information
Gather Information about the job
Ensure buy-in of all
relevant stakeholders
Write a job description Validate results and get
final approval
Verify accuracy of job information Document results in
and description with stakeholders written
Critical Incident Technique (CIT)*
Critical incident
Situation, where a job incumbent must go it’s limit and
where difference between strong and weak job
incumbents can be determined
Basic assumption
To understand nature of a job one must look at the 5%
critical incidents, where the chance to dramatically
succeed or fail is high
The CIT as part of job analysis involves the

following steps:
a) Identify critical incidents
b) Distil successful versus not successful behaviors
c) Select distinct behavioral patterns
d) Translate behavioral patterns into competencies
* by: Flanagan, J. C. (1954). The critical incident technique. Psychological Bulletin, 51(4), 327-358.
15
Questions to a Job Incumbent while using the
Critical Incident Technique (Examples)
What are specific challenges

and obstacles a jobholder
must cope with?
What will successful job

incumbents do differently?
Which particular behaviors

might be critical for doing the
job well?
How can you determine

whether a job incumbent is
successful in dealing with
critical situations?
Most typical Elements of a Job Description
Name of the Job Responsibilities,

functions and duties of
Job Identification the jobholder
Number
Required knowledge,
Department where job is skills and competencies
assigned to
Required education and
Name and title of work experience
immediate supervisor
Immediate working
Location conditions
Salary of jobholder Equipment to be used
by job incumbent
Number of open
positions
Look at www.jobdescription.com or at www.monster.com for some examples
16
Limitations of Job Analysis and Description
Job-related aspects change over time

It might be the employee who defines
his/her job (dejobbing)
Limited validity of job analysis results
In most cases job analysis don‘t cover
generic aspects such as culture
Job descriptions may increase
bureaucracy
Focus on jobs rather than focus on
employees and customers
Who controls job application of job
analysis?
Job descriptions support the „this-is-
not-my-job“ mindset
Dejobbing
Changing business environments required

flexible deployment of employees
Tasks of employees reflect their talents,

strengths and individual preferences
Employees are responsible to actively identify

and take care for critical challenges
Cooperation in work teams and changing,

rotating responsibilities among group members
17
Corporate Culture and
Employer Brand at Gore
At Gore you'll find direct communication, a team orientation, and

one title - associate - that's shared by everyone. [..]
How we work sets us apart. We encourage hands-on innovation,
involving those closest to a project in decision making. Teams
organize around opportunities and leaders emerge.
[..] There are no chains of command nor pre-determined channels
of communication. Instead, we communicate directly with each
other and are accountable to fellow members of our multi-
disciplined teams.
[..] Associates (not employees) are hired for general work areas.
With the guidance of their sponsors (not bosses) and a growing
understanding of opportunities and team objectives, associates
commit to projects that match their skills. [..].
[..] Leaders may be appointed, but are defined by 'followership.'
More often, leaders emerge naturally by demonstrating special
knowledge, skill, or experience that advances a business
objective. [..]
Source: www.gore.com
Employer Branding
18
Overview
Definition: Employer image, employer brand,

employer branding
Impact of an employer brand
Characteristics of strong employer brands
Building an employer brand
Types of employer positioning
Employer branding to the inside
Meaning of Web 2.0
International Brands
19
" Imagine having the resource to influence tomorrow‘s reality
today, and having fun while you do it. That‘s Microsoft. Right
now, we‘re looking for people who think big and dream big –
people a lot like you“
Product Brand versus Employer Brand

Source: Corporate Leadership Council (1999)
20
Characteristics of a strong Employer Brand
Overall a strong employer brand provides an

answer to the question „Why should I work for
this company?“
As such an employer brand offers a clear

Employment Value Proposition (EVP)
The answer must be …

– Unique: It is different from the messages sent by the
strongest competitors in the labor market
– Consistent: All messages and communication
measures consistently reflect the EVP
– Apealing: The EVP is attractive in the eyes of the most
important target groups
– Realistic: The EVP must reflect what an employer
realistically can offer
Which Company?
21
Employer Branding Cycle
Strategic HR
Planning
Evaluation of Labor Market Segmentation/

Brand Effectiveness Target Group Definition
Operation
Analysis
Operating Marketing Determination of
Measures Target Group Preferences
Development and Testing Market/Competitor Analysis/

of Branding Material Weaknesses and Strengths
Positioning, Definition of
Employer Brand Strategy and Employer Value Proposition
Strategy
Insights into Dimensions require Inputs from

multiple Sources
Recruiters New (Target Group)

(internal/external) Hires
Target Group
Employment Target Group
New Hires from Strenghts Preferences Members
Competitors (internal/external)
Competitors‘ Competitors Employer Current

Branding Employer
Websites Positioning Strategy Image Career
Website
Visitors
Targeted Company/
Available Employer Product
Employment Image Brand
Studies Applicants
(Senior) Line Marketing Experts

Management (internal/external)
22
Possible Components of an
„Employment Value Proposition“
Location Work-Life-Balance
Products & Services Compensation & Benefits
Stability & Success Training Opportunities
Security Career Opportunities
Company Reputation Learning Opportunities
Competitive Position Task itself
Company Values Innovation
Workforce Personality Alternation
Company Culture Freedom & Flexibility
Management Quality Impact of Company
Opportunity to leverage
ones strengths
Employee Quick Poll (Example SAP)
23
Five Types of Employment Value Propositions
Focus on Offers
„At our company you get more than what you get elswhere
(e.g. benefits, culture, career opportunities)“
Focus on Personality
„In our company we are like this. If you fit to that you can stay
as you are and you find people similar like you are“
Focus on Values
„That‘s important for us in our company. If you share these
values you are welcome and can life according to what‘s
important to you“
Focus on Company itself

„Our company is a very special company, successfull, global
etc.“
Focus on Tasks
„At are company you will gt the chance to do this. If this is
what, you are excited about you are welcome and have fun“
Focus on Offers
24
Using Personality Traits
Smells new business opportunities

Listen to customers
Desire to please
Sincere Smile
Multi-tasking arms, ideal for tackling 10
projects at once
Thinks „differently“
Passion for new ideas
Signs of creativity
Team player
Understated air of self-confidence
Appropriate use of humor
Calm under pressure (on the surface
anyway; underneath, adrenalin is going
like the clappers)
Be passionate, engaging, cosmopolitan, inspiring, connected, ambitious, perfect,

firendly, cooperative, outstanding, different, intuitive … Be Lufthansa
25
A Case that didn‘t work

– Hiding Faces?
– What’s about teamwork?
– Joke versus Reality?
– Intercultural fit?
– So what?
Focus on Company Values
At The Ritz-Carlton, our Ladies &

Gentlemen are the most important „Ladies & Gentlemen
resource in our service serve Ladies &
commitment to our guests. Gentlemen“
By applying the principles of trust,
honesty, respect, integrity and
commitment, we nurture and
maximize talent to the benefit of
each individual and the company.
The Ritz-Carlton fosters a work

environment where diversity is
valued, quality of life is enhanced,
individual aspirations are fulfilled,
and The Ritz-Carlton mystique is
strengthened.
26
Focus on Company – AT&T
Focus on Tasks
(Example: Enterprise Rent-A-Car)
27
Web 2.0 – „Employee Branding“
Web 2.0 stands for the second generation of the Internet

where content (e.g. text, picture, videos, products) are more
and more generated by the users
Approaches for employer branding are
Employee Blogs (e.g. Sun, Yahoo!, Festo)

http://blogs.sun.com/
http://www.ausbildungsblog.de/
http://www.prweaver.com/blog/2005/01/29/112-yahoo-employee-blogs
Video-Streams and potcasts about the

company (e.g. Spreadshirt, Siemens)
http://www.spreadshirt.net/Arbeiten_bei_Spreads.779.0.html
References on public sites which guide

knowledge and oppinions (Wikipedia,
Dooyoo)
http://www.dooyoo.de/arbeitgeber/
Sourcing
28
Overview
Current changes that impact labor market

conditions
Passive versus active seekers
Passive and active sourcing strategies
Talent Relationship Management
Current Trends that will Change Human Resource

Practices dramatically
Innovation is the main factor for competitiveness

in Germany and in many western industries
Growing importance of tactic tasks
Shortage of talented and qualified candidates

and employees due to demographic changes
Decreasing loyalty of highly qualified employees
Growing transparency and speed of global labor

markets due to the Internet
Growing occurence of competitive actions and

engagement of professional service companies
29
Types of Seekers
10-20% of target group,

Active which will find openings
Seekers automatically
10-30% of target group, which

Passive
need to be attracted at places
Seekers
they naturally show up
Non-Seekers 20-80% of target group

which can‘t be attracted at
all
Prioritization of Target Groups impacts

Sourcing Method Usage
Active Methods
Hard to hire/
difficult to find
B1
A
Availability on
the labor market
B2
C
Good
availability
Necessary but Mission-

not critical critical
Passive Methods
Impact on Company Success
30
Methods of Talent Identification and Attraction
Passive Public Job Posting
Public Labor Agency
Contingent Workforce
Search in Public Job Boards
Executive Search/Headhunter
Job Fairs
Search in Corporate Talent Pools
Employee Referral
Campus Recruiting
Competitive Intelligence
Active Talent Scouting
Job Fairs
Direct Competition with Direct and immediate

other employers contact to potential
candiates
Limited focus on specific
target groups Immediate pre-selection
and job offering
Limited contact to passive
seekers Low quality candidates
31
Internal Career Portals
Career Counselor
Employee & Support

Job Data
Employee
Job Profile
Profile
Recruiter
Emplyoee
Career Portal
Search Search for
for Jobs Employees
Monitoring Portal
Management
Corporate HR
Advantages and Disadvantages of

Internal versus External Hiring
Internal External
Limited Hiring Risk New Ideas
Short Time-to-Fill Limited Costs of Education

Advantages
Reduces Cost-per-Hire Access to Information about

Competitors
Internal Competition
More options to choose from
Employee Integration
People Development
Disadvantages
Limited Options to choose Higher Cost-per-Hire

from
Employee Integration
Higher Costs of Education
Higher Hiring Risk
Disappointed Employees
Higher Turnover Risk
Conflicts among Managers
32
Executive Search
Placement of suitable candidates for critical and

hard to be filled positions (management
positions, specialist position) through executive
search consultants (headhunters)
Annual salary of position incumbant are above
100.000 Euro and more
In most cases searches are handled secretly
Leading executive search companies are Egon
Zehnder International, Heiddrick & Struggle,
Russel Reynolds, Korn/Ferry
Most typical areas fo executive search are
– Retained search versus contingent search
– Direct search versus search through job ads
Executive Search Process
Determine
Requirements related to Interview Candidates
Position to be filled
Identify Target Check References of

Companies most suitable
(Consider off-limits) Candidates
Negotiate job-related
Candidate Search and Conditions (e.g. Salary,
direct Approach Sign-on Bonus)
Present profiles of three Coach new Executive

possibly suitable during first 100 Days of
Candidates Employment
33
Business Communities in the Internet
(Example: www.xing.de)
Referral Programs – „A Player know A Player“
Employees recommend potential

candidates (friends, former
colleges) outside the firm to be
hired
Referred candidate will either be
approached by an external
consulting partner or asked by the
employee to actively apply
In case of hiring the employee who
has referred the candidate gets a
special bonus
Advantages of referral programs:
– Low cost per hire
– Short time to fill a position
– High quality of new hire
– Strong cultural fit
34
Proactive Referral Program at
Lilly and Company
1. New hires are asked to identify top performers they

may have worked with or know in their fields
2. HR Department hosts "focus groups" among current

employees to target top performers in their fields
and assign specific individuals to reach out to them
3. HR Department hosts "Bring Your Own Rolodex"

meetings with managers to probe the networks of
senior staff
4. HR Department encourages dedicated managers to

build relationships with passive, but high value
prospects
Critical Factors for Campus Recruiting
Target group focused student attraction
Strong business line involvement
Early relationship building to graduates
Fast and responsive recruitment processes
Entering natural student networks
Global consideration of available talent
Highly professional treatment/communication
Competitive employment offers
35
Campus Recruitment requires specific Roles
HR
HR Business
Business Partners
Partners Executives
Executives
support
support Business
Business LineLine build
build lon-term
lon-term relationships
relationships
Representatives
Representatives and and take
take to
to business
business schools
schools
care
care for
for logistic
logistic of
of
recruitment
recruitment events
events
Recruiting
Department
Overall monitoring,
Targeted reporting,
Business
Business Line
Line coordination
Students
Representatives
Representatives
execute
execute recruiting
recruiting asas
direct
direct contact
contact for
for students
students
Campus
Campus Ambassadors
Ambassadors
identify
identify and
and support
support best
best
strategies
strategies to
to get
get in
in touch
touch
with
with top
top talents
talents
Competitive Intelligence
1. Identification of most promising competitors and

target groups/functions (e. g. sales, design, F&E)
2. Identifiction and documentation of most attractive

target persons on competitor‘s side with the help of
executive seach firms and employees (e. g. Key
Account Manager)
3. Determination and documentation of actual status

and preferences of most promissing target persons
(e.g. through Google, OpenBC)
4. Direct approach of target persons in situations where

loyalty is expected to be poor (e. g. during mergers &
acquisitions, large-scale organizational
transformations)
36
Competitive Intelligence at FirstMerit
(Most-wanted "interviewless" hires)
Developing a "most wanted" list of the five best

proven performers at their competitors.
Conversation with these "most wanted"

candidates in order to verify that they were highly
desirable
The team then sent each of them, without warning

or an interview, an offer letter and a cover letter
that stated that they could start in two weeks
All prospects called back asking if the offer to start

was for real, and they were told that it was
The recruiter then asked the prospects who they

wanted to interview with and when
Talent Scouting
1. Definition of critical target populations where it is

presumed that critical talent might occur (e. g. former
employees, customer contacts, competitors)
2. Identification of places, where target populations
naturally show up and demonstrate their potential (e.
g. congresses, natural workplace)
3. Occupation of target population by dedicated talent
scouts (e.g. employees, managers, corporate talent
scouts, headhunters)
4. Setup and maintenance of a target list of potential
candidates
5. Validation and prioritiziation of target candidates both
in terms of their preferences (readiness to change
career) and their potential
6. Active approach of target candidates through line
managers or headhunters
37
A new Paradigm in Recruitment
Corporate Leadership Council, 2000
Internship Program
Employee
Company keeps
Talent relationship to former
Formal Assessment Pool intern
Responsibility for a small

project of relevance for
Project Work
the company/business
function
Transactional work on a
daily basis in one or more
Regular Internship
business functions
38
Selection
Overview
The recruiting pyramid
Social judgment and related biases
Selection methods
– Reviewing Résumés
– Psychological testing
– Interviews
– Assessment center
Criteria to evaluate selection methods
39
Recruiting Pyramid
New Hire 1 20
1,5
Job Offer 1,5 30
3
Assessment 4,5 90
5
Interview 22,5 450
3
Pre-Selection 67,5 1350
10
Application 675 13500
Objectives of Candidate Selection
Valide, reliable and objective prediction of future

performance and development
Reduction of hiring risk (wrong hires, wrong

rejections)
Fairness, transparency and acceptance of

methods used to select candidates
40
The Goal of Selection: Maximize “Hits”
High
Miss Hit
Inaccurate Accurate
prediction prediction
(Person would have (Person succeeds
Job Performance
succeeded on the on the job)

job)
Hit Mis
Accurate Inaccurate
prediction prediction
(Person would not (Person fails on the
have succeeded on job)
Low
the job)
Low High
Predicted Success
Applicant 1
Clever
Leadership Strength
Engineer
Result-oriented
Self-confident
Future-oriented
Ambitious
41
Applicant 2
Clever
Leadership Strength
Engineer
Result-oriented
Self-confident
Future-oriented
Ambitious
Judgement Biases
Primacy Effect (First Stereotyping

Impression) The tendency to
The tendency for a generalize about people
perceiver to rely on early in a social category and
cues or first impressions. ignore variations among
them
Recency Effect
The tendency for a Contrast-Effect
perceiver to rely on The tendency to judge
recent cues or last upward or downward
impressions. because of a comparison
with another applicant
Projection who was recently
The tendency for evaluated
perceivers to attribute
their own thoughts, Halo-Effect
priorities and feelings to The tendency to provide
others similar ratings across
different personality
dimensions
42
Most Important Selection Methods
Reviewing Résumé Reference Check
Heuristic Rules Background Investigation
Ability Tests Physical Examination
Personality Tests
Biographic Questionnaire Graphology
Interview Physics
Projective Tests
Games
Assessment Center
Usage of Selection Methods in Germany
0 20 40 60 80 100
Résumé
References
Interview
Work Sample
Skilled Worker
Biografic Questionnaire Trainees
Management
Assessment Center
Source: Schuler, Frier & Kaufmann, 1993; N = 105 dt. Unternehmen)
43
Applicant Dimensions
Talent
Competencies Knowledge
Applicant
Motivation Personality
Interest Attitudes
Types of Tests
Personality Tests
Measure stable and individual behavioral dispositions
Cognitive Ability Tests

Measure an individual’s thinking, memory, reasoning, verbal
and mathematical abilities
Physical Ability Tests

Measure strength, endurance, and muscular movement
Knowledge Tests
An achievement test that measures a person’s level of
understanding about a particular job
Preference Test
Measures a candidates interests towards future employment
Psychomotor Tests
Measure dexterity, hand-eye coordination, arm-hand
steadiness, and other factors.
Human Resource Management, Hochschule Furtwangen, Copyright © 2006 www.armintrost.de 88
44
16 PF (Catell) – Selected Items
I like tasks which involve I am tender minded.

extensive thinking.
I am very easy going.
I prefer strange films.
I suspect hidden motives
I reveal little about myself. in others.
I favor the surreal. I love to read challenging

material.
I am abstract.
I frequently second guess
I am outgoing. myself.
I would rather lead others I want everything to be
than follow. "just right."
I am unusual. I get angry easily.
I am a very private person. I am exacting in my work.
I make friends easily. I am carefree
The „Big Five“ Personality Dimensions
Extraversion
Sociable, gregarious, assertive, talkative, expressive
Adjustment
Emotionally stable, nondepressed, secure, content
Agreeableness
Courteous, trusting, good-natured, tolerant,
cooperative, forgiving
Conscientiousness
Dependable, organized, persevering, thorough,
achievement-oriented
Inquisitiveness
Curious, imaginative, artistically sensitive,
broadminded, playful
45
d2 Test of Attention
Intelligence
Select the option that best fits the pattern of For each question determine the number
the previous images that best fits the pattern of the previous
numbers
1. 1, 3, 6, ?
2. 3, 5, 8, 13, 21, ?
3. 3, 6, 18, 108, ?
4. 4, 1, -3, -4, ?
5. 95, 36, 15, ?
6. 6, 13, 29, 63, ?
7. 1, 1, 2, 6, ?
8. 12, 33, 55, ?
9. 99, 86, 73, ?
10. 2, 5, 8, 35, ?
11. 4, 16, 49, ?
12. 73, 61, 56, 62, ?
13. 1588, 1820, 2148, 2204, 2284, ?
14. 923, 937, 963, ?
46
Intelligence
There is scientific evidence, that people who earn

much money are often not as happy than those who
earn less money.
Please create as much thesis supporting this finding

as possible.
Projective Tests
Thematic Apperception Test Rorschach Test
47
Online Tests
Advantages
– Global access/availability
– Low operating costs
– Opportunity for adaptive item
presentation
– Automatic/immediate analysis and
reporting
– Opportunity to track response time
Disadvantages
– Limited control over test situation
and subject behavior
– Limited opportunities to
professionally support
interpretation of results
Advantages of Psychometric Test Methods
High objectivity due to limited impact of test operator
High comparability across candidates due to highly

standardized test conditions
Limited costs per test usage
Test can be used as modules complementing other

selection measures
Tests require minimal infrastructures and can be used

in almost every situation
Tests can be exposed even online at any time and at

many locations
Analysis is very simple (e.g. score is equal to the

amount of correctly answered items)
48
Process of Interviewing
What are main duties, responsibilities, working
Job Analysis conditions etc. of the job?
What are the most critical elements of the job to

Prioritize job‘s
be caputured during interview?
main duties
Create interview Deside upon interview technique and structure

questions and Prepare questions reflecting critical elements
benchmark answers Define expected answers to each question
Arrange interviews, invite candidates, and

Appoint interview panel persons to be involved
and conduct interview Share relevant documents
Conduct the interviews
Review, summarize Collect interview results and conduct wrap-up

interview and draw session immediately after the interviews
conclusions Document results and decide upon future steps
Provide feedback Call all candidates within a few days after

to candidate interview and provide feedback
Typical Interview Structure

Introduction
– Informal conversation to make the candidate feel comfortable
– Outlook on interview structure
– Introduction of persons involved in the interview
Presentation of Company, Department and Job

– Description of the company‘s business and culture, the function of the department
– Presentation of duties, responsibilities and requirement related to the job in question
Candidate Presentation
– Work experience of and most significant achievements relevant to the job
– Preferences and expectation for future employment
– Motivation to change career (including the family‘s readiness)
Reviewing Competencies
– Discussion critical situation (using situational questions)
– Examining critical competencies
– Examining the candidates knowledge (based on real cases)
Open Questions of the Candidate
Finishing
– Generic feedback to the candidate (if appropriate)
– Clarifying next steps („we call you in three days“)
– Concurrent application processes
– Formalities (e.g. travel cost reimbursement)
49
Most Important Questions during an Interview
Candidate Employer
Why am I invited? Why are you here?
What can your What can you do for

company offer me? us?
What kind of What kind of person

employer are you? are you?
What distinguishes What distinguishes you

your company from from others who have
others? the same skills?
Can I afford working Can we afford you?

at your company?
Interview Questions to Assess Competencies
Describe a time when you inspired others to reach a

common goal (Leadership).
Describe a time when things didn’t turn out as you had
planned. What did you do to analyze the situation and how
did you address the issue? (Planning)
How does the work you are currently doing affect your
organization’s ability to meet its’ mission and goals? Do you
think your work is important? If yes, why? If no, why not?
(Strategic Thinking)
Give an example of a situation where the group of people
you worked with on a regular basis had a serious conflict.
What was the conflict about? How were you involved in the
conflict? What was the outcome? (Interpersonal Relations)
Tell me about a time when you really had to pay attention to
what someone else was saying, actively seeking to
understand their message? How did this challenge affect
the manner in which you portray important messages to
others? (Communication)
Source: Corporate Leadership Council (2004):
50
Describe a situation where you were successful in getting

people to work together effectively. (Teamwork)
Describe a change in your work you have personally had to
make in the last couple years. At the time, how did you feel
about making the change? What did you do to make the
change? How do you feel about the change now?
(Flexibility/Adaptability)
Describe something you have done that was new and
different for your organization that improved performance
and/or productivity. (Innovation)
Tell me about a time when you had to identify the underlying
cause of a problem. How did that analysis help you to solve
the problem more effectively? (Problem Solving)
Describe a particularly trying customer complaint or
resistance you had to handle. How did you react and what
was the outcome? (Customer Focus)
Source: Corporate Leadership Council (2004):
Assessment Center Definition
Appraisal of …
multiple candidates
up to 12 candidates of a specific target group
in multiple situations
individual and group exercises
along multiple criteria

according to required profile
by multiple assessors
line-managers and psychologists
through application of multiple methods

tests, group-exercises
51
Teilnehmer und Beobachter
Teilnehmer
Beobachter Facilitator
Assessment Methods
Presentation Group exercise
Involves a 10 to 15 minute Includes problem solving within a
presentation on a pre-determined committee or team.
topic.
Meeting with current employees
Case study interview. Involves candidates meeting with
Requires candidates to read a large employees currently working within the
folder of information and then answer prospective position to discuss the
questions relating to the subject matter nature of the job.
Competency-based interview Practical/creative problem-solving

Includes personal history questions task
and problem-solving tasks and Includes building a structure with
scenarios limited materials
Fact-finding exercise Psychometric/Personality/Aptitude
Includes research and retrieval of test
information on a given subject or Includes a personality questionnaire
interaction with the interviewer to and/or numerical, verbal, and
obtain further information from them diagrammatic reasoning tests.
In-tray test Role-play exercise
Includes prioritizing documents, Involves acting-out a business-related
drafting replies to letters, and situation.
delegating important tasks
Written exercise
Involves producing a concise written
summary from a collection of
documents
52
Appraisal Scheme
Example Präsentation
Behavior Grade Comments
1. Speaks soundly
2. Keeps eye contact
3. Follows a clear structure
4. Uses body language
5. Is understandable
6. Keeps on time
7. Makes usage of time
Combination of Exercises and Criteria

(Example)
Group Pre- Personal Cognitive
Decison Negotiation
Discussion sentation Interview Ability Test
Structured thinking
and acting
Mental agility
Initiative
and self-control
Cooperation
Conflict
Management
Endurance
Communication and
social behavior
Influencing others
Motivation
Intellectual
Capabilities
53
Advantages of Assessment Centers
High objectivity, reliability and validity through

multiple methods, exercises, criteria, assessors
Comparability of candidates within and across

assessment Center cycles
Reflection of future duties and responsibilities
Limited risk of social desirable behavior
High transparency of requirements in the eyes of

the participants
From Observation to Actual Performance
Observation Diagnosis Prognosis Performance
Testing results; Determination Occupational Actual

Interviews; of candidate aptitude; performance
CV abilities Selection after a period
… (e.g. leadership decision of time
strength) (e.g. future (e.g.
leadership Leadership
behavior) appraisal)
54
Correlation
Correlation reflects r = 0,5 r=0

linear relationship
Y Y
between two
variables (X and Y)
Correlation
coefficient r shows
strength of linear
relationship X X
r = 0,9 r = -0,5
It can vary between
Y Y
-1 and +1
Correlation does
not indicate
causality of
relationship
X X
Validity
Examining Criterion Validity
Validity describes the
extent to which results of Subject Test Criterion
an assessment method
1 78 72
relate to what it is
2 67 68
supposed to measure
3 44 51
Criterion-Related Validity …
Correlation between n 89 83
assessment results and
actual performance
r
(e.g. Performance)
Content Validity
Criterion
Content validity is high if the

assessment methods
constitute a fair sample
reflecting the whole range of
the construct to be assessed Prediction (e.g. Test)
55
Reliability
The extent to which a predictor Examining Test-Retest-

repeatedly produces the same Reliability
results, over time
Subject 1. Test 2. Test
1 78 72
Test-Retest-Reliability
2 67 68
Multiple application of the same
method leads to similar results 3 44 51
Inter-Rater-Reliability …
(= Objectivity) n 89 83
Different rater produce similar
outcomes
r
Inter-Item-Reliability
(= internal Consistency)
Different items of one test show
similar results
Measured and expressed
through Cronbach‘s Alpha (ranks
from 0 to 1)
Objectivity
Multiple rater independently Examining Objectivity

produce the same results
Objectivity can relate to Subject Rater 1 Rater 2

execution, analysis and 1 78 72
interpretation 2 67 68
3 44 51
…
n 89 83
56
Performance Management
Overview
The Performance Management Cycle
Objective Setting
Performance Appraisal
Dealing with low performers
Limitations of Performance Managements
57
Performance Management Cycle
Strategy/Team objectives
Review Objective Setting Plan

(Performance &
Development)
Performance Development
Appraisal Planning
Coaching Feedback
Performance/
Development
Monitor Act
Purpose of Performance Management
Cascading and strategic objectives from upper

hierarchical level to the bottom line
Alignment and focus of individual and team

performance with overall target
Clarity about mutual expectations within an employee-

manager relationship
Continuous learning and constant improvement of

performance through timely feedback and target-
oriented people development
Foundation for numerous key processes in human

resource management such as compensation, people
development, succession planning (horizontal
integration)
58
Cascading
CEO
Garth McGrath
Rules about How to Set Objectives
Specific Positivly stated Challenging
Measureable Understood Legal
Accountable Relevant Environmental

sound
Realistic Ethical
Agreed
Time bound
Recorded
59
Objectives
(Examples)
Example better
Development, design and Increase of hit rate on corporate

implementation of an online website to 2.000 hits per day by
marketing concept end of 2006
Increase of number of parking Reduction of misdemeanour by
tickets by 5% in the year 2006 5% in the year 2006
Closer cooperation between sales 20% of leads generated by

and marketing marketing lead to customer
presentations
Increase of revenue in the Eastern Increase of revenue in the Eastern
Europe market by 10% in 2005 Europe market in 2005 5% higher
compared to the market leader
Performance Management Form 1/2

(Example: Performance Objectives)
60
Performance Management Form 2/2
(Example: Development Plan and Overall Rating)
360-Degree-Feedback
A focus person is evaluated
from different perspectives
(outside perception)
Direct
A focus person evaluates
Supervisor him/herself (self perception)
There is a direct relation
between appraiser and focus
person
Evaluation happens
anonymously, in written by
using standardized and
Peers Self Customers structured methods (e.g.
questionnaire)
The evaluation is about both
behavior and performance
The focus person gets a
personal report to be
discussed with his/her direct
Subordinate supervisor
Purpose is to determine a
focus person‘s strengths and
weaknesses
61
Behaviorally Anchored Rating Scale (BARS)
(Example: Teamwork)
Level 1 Level 2 Level 3 Level 4
Participates willingly Takes responsibility for Builds support and Builds highly productive
towards the team activities that stretch enthusiasm for the teams from highly diverse
accomplishment of goals of beyond own functional accomplishment of team disciplines, cultures or
one’s own team, doing his area. goals. organizations.
or her share of the work.
Solicits the input of team Uses the agendas and Creates commitment to and
Demonstrates respect for members and encourages perspectives of others to enthusiasm for the
the opinions and ideas of their participation. establish mutually accomplishment of
others. beneficial objectives. challenging objectives across
Ensures participation of diverse teams.
Does not remain silent or others who are affected Takes responsibility for the
withhold differing opinions in by plans or actions. accomplishment of team Masterfully integrates people
team settings. goals. and resources to achieve
Puts team’s agenda and high levels of synergy.
Is willing to accept the good of the whole Removes obstacles that
compromises to progress ahead of personal needs. get in the way of team Resolves dysfunctional
toward the achievement of success. conflict within or among
group goals. Finds areas of agreement teams to ensure business
when working with Gives recognition and success.
Follows through on conflicting individuals or credit to people who have
commitments made to other groups. contributed to team
team members. success.
Helps others to solve
Keeps people informed and work problems and Takes specific steps to
up to date. achieve team objectives. keep morale and levels of
performance high during
times of intense work
pressure.
Overall Performance Ranking Scale

(Example: Microsoft)
Rating Definition
Exceptional performance rarely achieved. Marked by precedent-setting results beyond the scope of the
5.0 position. Demonstrates the highest standards of performance excellence relative to individuals with
comparable levels of responsibility
Consistently exceeds all position requirements and expectations. Accomplishements are highly valued
4.5 and may be well beyond the scope of the position. Demonstrates higher standards of performance
excellence relative to individuals with comparable levels of responsibility.
Consistently exceeds most position requirements and expectations. Accomplishements are often
4.0 noteworthy. Overall performance is consistently above levels of quality and quantity relative to
individuals with comparable levels of responsibility.
Exceeds some position requirements and expectations. Successfully accomplishes all objectives.
3.5 Overall performance matches levels of quality and quantity relative to individuals with comparable levels
of responsibility.
Meets position requirements and expectations. Accomplishes most or all objectives. Some aspects of
3.0 overall performance may require additional development or improvement to match levels of quality and
quantity relative to individuals with comparable levels of responsibility.
Falls below performance standards and expectations of the job. Demonstrates one or more
2.5 performance deficiencies that hinder acceptable performance relative to individuals with comparable
levels of responsibility
Does not meet minimum requirements in critical aspects of the job and has numerous performance
1.0-2.0 deficiencies that prevent success at Microsoft.
62
Compensation & Benefits
Overview
Objectives and challenges of compensation &

benefits
Factors to determine compensation
Total Rewards
Building a base pay system
Pay for performance
Pay for company success
Benefits: components, rationale, cafeteria

system
63
Challenges and Objectives of a Compensation and
Benefits Strategy
Ensure employees‘ livelihood
Driving performance according to the company‘s

strategy
Procedural and distributive equity for employees
Attraction and retention of talented candidates

and employees
Legal compliances with all appropriate laws and

regulations
Equity
Distributive Equity
A One‘s performance
reward relation
Reward
compared to others
Equity Procedural Equity
Do procedures to
B determine compensation
lead to equitablel
results?
Contribution to Company Success
64
Factors Driving Individual Compensation
Nature of Job Performance
Seniority Competencies
Compensation
Status Market
Cost of Living Company Success
Total Rewards
Total Rewards
Total Compensation Non-financial Rewards
Base Pay Variable Pay Benefits Recognition
Wages Bonuses Insurances Autonomy
Salaries Incentives Pension Opportunities
Stocks Services Networks
Piece-Rate Pay
65
Development of a Base Pay System
Job Analysis
Job Evaluation Pay Survey
Pay Policies Pay Structures
Job
Individual Pay
Appointment
Implementation,
Communication,
Monitoring
Source: Mathis & Jackson: Human Resource Management
Compensable Factors
(Example: Hay System)
Know-How Problem Solving Accountability

Magnitude
Environment
Challenge
Impact of end results

Managerial skills
Freedom to act
Human relation
Funcitonal Expertise
8 7 3 8 5 8 4 Dyn.
Total Point Value

66
Job Evaluation using Point Method
(Example Consulting Company)
Assistant Junior Cons. Senior Cons. Manager Principal
Compensable Factor Weight Rating* Value Rating Value Rating Value Rating Value Rating Value
Expertise 2 2 4 3 6 8 16 6 12 4 8
Leading People 3 0 0 1 3 2 6 4 12 8 24
Responsibility for Results 1,5 1 1,5 2 3 4 6 8 12 10 15
Cognitive Requirements 3 2 6 3 9 4 12 6 18 10 30
Learning & Development 2,5 2 5 6 15 5 12,5 4 10 10 25
Networking 3 2 6 3 9 3 9 10 30 12 36
International Mobility 1 0 0 5 5 7 7 12 12 8 8
Strategic Impact 2 1 2 1 2 2 4 6 12 10 20
Job Value 24,5 52 72,5 118 166
* Scala ranking from 0 (=does absolutely not apply) to 10 (=totally applies)
Determine the Market Line through Pay Surveys
Benchmark jobs are

Market Market
Jobs at other Pay Line
companies with similar
duties, requirements
etc.
Collect compensation
data about benchmark
jobs (pay survey)
Computing market line
by using statistical X
regression analysis
Market line represents Job
Value
relationship between
job value and market Benchmark Jobs
pay
Market Line = X + Job Value × Y
67
Compensation Quartile Strategy
Organizations
Amount of
Market
Quartile 1st 2nd 3rd Pay
1st 2nd 3rd
Below-Market Strategy Middle-Market Strategy Above-Market Strategy

Inability to pay more Balancing cost- Competitive
presure and
Limited labor-market competition Focus on mission-
competition critical and hard-to-be
filled position
Pay Structure
Pay Grade, Pay Range, Pay Rate
Pay Range
Pay Grade
(Job Value)
7
5 Red Circle in
e
etL
k
4 ar
M
3 Green Circle
1
Pay Rate (€)
68
Opportunities and Threats of Job Evaluation
Opportunities Threats
Common foundation for Significant bureaucracy

compensation-related during implementation
decisions
Acceptance of all
Job-related distributive stakeholders involved
and procedural equity
Requires clear job
Transparency of definitions
compensation-related
decisions Reduces flexibility of
compensation-related
Active elaboration of job decisions
values and contribution
to company‘s success May reduce innovation
and employee
engagement
Types of Variable Pay Plans
Profit Sharing
Employee Stocks
Organization
Employee Stock Ownership
Group Incentive Plans

Group
Piecework
Individual Merit Pay
Bonuses
Sales Commission
69
Piecework Systems
Example
€8.00 (hourly rate) * 12min/unit (standard tim per unit)
= €1.60/unit
60min
Preconditions
– Employees must have full control over output.
There is little or no impact of supply, methods and
tools on output
– Individual contribution can be determined easily
– Required employee capabilities can be easily
acquired
Merit Pay
Linking pay increases to Performance Appraisal/

performance appraisals Responsibility
Compa-
ratio - -/+ +
Increases become part of
base pay
120 0% 0% 0%-3%
Compa-ratio = pay level/
midpoint of pay range
110 0% 0%-3% 0%-5%
Example:
16.50€ (current pay)
X 100 = 110 100 0% 3%-5% 5%-7%
15.00€ (midpoint)
Pay Adjustment Matrix 90 0% 5%-7% 7%-9%

determines pay increase
according to actual
performance, responsibilities 80 0% 7%-9% 9%-11%
and compa ratio
70
One-Time Bonuses
A one-time bonus is a one-time payment that

does not become part of the employee‘s base
pay
Can be used to reward employees for

contributing new ideas, coping with critical
challenges, acquring new skills
Bonuses usually recognize performance of both

the employer and the company
Bonuses provide great flexibility in rewarding

valued behaviors at particular situations
Target Bonus
Employee and
Target
supervisor agree on Bonus (%)
– Individual targets
– Relationship between
140
target achievement and B
target bonus
120
A
Employees can choose
from different options 100
reflecting different risk

levels (see picture) 80
Primarily used for 60
managers
60 80 100 120 140
Target Achievement (%)
71
Group Incentive Plans
Application of variable pay plans on group level
All variable pay plans can be adopted
Chances Risks
Shows a clear Individuals may rely

management on others‘
commitment to performance (social
teamwork loafing)
Supports building Team bonus don‘t

team culture and reflect individual
encourages team- contribution, which
members to might be perceived
cooperate as unfair
Conditions for Successful Variable Pay Plans
Variable pay is consistent with organizational culture

and philosophy (e.g. requires sufficient autonomy)
Variable pay plan recognize individual differences

(e.g. avoids “”rate busting”)
Employees can impact their performance results on

which they are measured according to their different
levels of responsibility
Employee see a direct relationship between their

efforts and their financial rewards
Employees value performance-related types of reward
Variable pay plan is clear, understandable, current and

updated
72
Pay for Organizational Performance
Profit Sharing
– Proportions of organizational profits are distributed to
employees
– Portions of profits are distributed either at the end of
the year or deferred, placed in a fund, and made
available at a later point of time
– Can be allocated equally or according to employees
earning, years of service, contribution etc.
Employee Stock Ownership

– Giving employees stock ownership of the organization
or the right to acquire stocks at a price below market
– The intention is to increase commitment, loyalty, effort
and awareness of company success
Employee Stock Options
The right to buy Stock Price
(excercise) a certain
number of shares of
stocks at a specific
13€
price (e.g. 10€; see
picture) 3€
10€ Option
Traditionally used for
executives. However,
Trends indicate a 6€
broader usage 6€
4€
Time t
73
Types of Benefits
Security Financial
– Workers‘ compensation – Interest-free building lown
– Unemployment – Company credits
compensation – Financial counselling
– Life insurance
– Disability insurance Offerings
– Early retirement options – Company car
– Disability retirement benefits – Private cell phone, laptop
– Pension Plans usage
– Free lunch
Health – Cafeteria and food services
– Health-Care INsurance – Child-Care; Company
– Sabbatical Kindergarten
– Free tennis courts, fitness – Cost advantages for
center usage company products
– Medical care – Company accommodations
– Psychiatric counselling
Reasons why Companies offer Benefits
Benefits attempt to employees and their

dependents from financial risks accociated with
illness, disability, and unemployment
Most benefits are not taxed as income to
employees. For this reason, they might represent
a more valuable reward to employees than an
equivalent cash payment
Benefits may contribute attracting, motivating
and retaining human resources
Some benefits add value to the employee without
additional costs for the employer. As such,
benefits might serve as substitutes for
compensation
Some benefits are required by law
74
Flexible Benefits (Cafeteria System)
Flexible Benefit Plan

A plan that allows employees to select the benefits they
prefer from groups of benefits established by the employer
Reasons for using “Flex Plans”

– Perceived value of benefits depend on employees’ age,
family status etc.
– By tailoring the right benefit package employees gain
maximum value without additional costs on employer’s side
– Flex plan heighten employees awareness of the costs and
value of benefits offered
Problems with Flexible Plans

– Inappropriate benefits package choices
– Adverse use of specific benefits by higher-risk employees
– Administrative and communication efforts
– Benefit requests are hard to predict
Training & Development
75
Overview
Chances and limitations of employee training
The planned approach: competence management
Types of training measures
Training development: from needs assessment

to training evaluation
Nature of employee development
Talent review (high-potential identification)
Career development measures
Succession planning
Talents, Skills & Competencies and Knowledge
Can be learned
Knowledge
Memory of contents Training
procedures, theory
etc.
Skills and
Competencies
Behavioral capabilities
such as language and
teamwork
Cognitive Abilities
and Personality
Stable and life-long
attributes of human
beings
Talent
Long-term potential to
excel in specific areas Development
76
Types of Trainings
Unique Training Needs
Training as part of a Customized training

large-scale change adressing special
initiative (e.g. IT- development needs for
implementation, teams and individuals
cultural change) (e.g. expatriate training)
Planned, Demanded
Strategically by Employees/
Decided Managers
Regular training for Training for employees

specific target groups offerred on demand at
(e.g. newly appointed high volume (e.g. group
managers, new hires) conflict training)
Standard Training Needs
Standard Training Content
Communication Language
Presenting Office Application
Group Facilitation Office Management
Working Techniques Business Fundamentals
Project Management Interviewing Candidates
Conflict Management Performance Management
Leading Teams
Intercultural Collaboration
77
Phases of Training Design
Define target audience

Needs Assessment Determine learning needs of target group
Determine learning motivation of target group
Define learning objectives

Design Create content, methods and media to be used
Define budget and scope of training operation
Engage training conductor

Implementation Arrange required infrastructure
Conduct training
Examine quality and impact

Evaluation Identify rooms for improvements and implement
required measures
Exercise: Onboarding newly hired Graduates
Every year 100 graduates are newly hired

into different functions of a company.
There are some indications, about new
hires not feeling satisfied with the way
how they are introduced
How would you concretly conduct a

needs assessment?
78
Needs Assessment Data Collection Methods
Structured interviews Critical Incidents

on individual or group Techniques
level
Participated or non-
Self-administered participated observation
assessment tools (e.g.
tests) Off-side needs
assessment workshops
Ratings from peers,
supervisors, Professional auditing by
subordinates (external) experts
Shadowing, diaries,
Coaching
Approaches of Training and Development
Along the Job

Assistance
Substitute
Into the Job On the Job Out of the Job

Education Job Rotation Outplacement
New Hire Integration Coaching; Mentoring
Trainee Programs Project Work
Near the Job

Task Forces
Work Groups
Off the Job

Congresses
Outdoor-Training
Off-side-Training
Source: Holtbrügge (2004): Personalmanagement
79
Advantages of Major Development Approaches
On-the-Job Off-the-Job
Natural and job-related Expertise and experience
of training conductor
Lower costs of
development measure Professional learning
environment
Immediate application of
newly acquired knowledge Focus on training, limited
job-related disruptions
Immediate Feedback
Networking among
Opportunity to monitor participants out of
development advances different functions and
countries
Motivation to learn
Training Media and Methods
Classroom training Simulation, role playing
Computerbased Outdoor Training

Training (CBT)
Classroom Training
Webbased Training
(WBT) Case Studies
Coaching Readings
Blended Learning
Combination of different media
80
Training Schedule
(Example: Project Management Course)
Day # Time Topic Objective Method Material

1 1 9am Introduction Understand the Presentation Course Handout
attributes of a project Slides 1-8
and the key challenges
to manage projects
2 10am Critical Factors Understand which Group Flip-Chart
factors drive success of Discussion & Pin Board
projects in the
participants' business
context
3 11am Break
4 11:30am Project Planning Participants become Presentation Course Handout
familiar with gant-chart Slides 9-16
technique to schedule a
project
7 1pm Lunch
6 1-2pm Project Planning Participants learn how to Group Work Case Study 1;
Excercice apply gant-chart Pin Board
technique
Training Administration
; Communicate with ; Test equipment that will be

Employees used during the
instructions
; Enroll employees in
courses and programs ; Provide support during
instruction
; Engage trainer and provide
briefing ; Distribute material for
evaluation the course and
; Prepare and process conduct analysis
pretests to be
administered ; Provide for communication
between training and
; Offer material to be read trainees
before
; Maintain records of course
; Arrange training facility completion, prepare
and equipment certificates
; Manage training
accounting
81
Summary of e-Learning Functionalities
Content management systems to offer

modular learning units worldwide
Online-tests to determine the learner‘s current

knowledge
Documentation of personal learning histories

and automatic suggestions of future learning
units
Live and recorded virtual classroom sessions
Interfaces to other systems such as skills

databases
Webbased booking and accounting of

trainings
Transfer of Training
Attributes of Participant
Cognitive ability to acquire
learning content
Learning motivation, perceived
relevance of learning content
Readiness to change behavior
Attributes of Training
Quality of learning content
Usage of the right media and
methods Learning Generalization
Perceived competence of training
conductor
Link to daily work
Work Environment
Support of direct supervisor and
colleagues
Opportunity to apply newly
acquired knowlege
Feedback
Source: According to Baldwin & Ford (2004): Transfer of Training
82
Levels of Training Evaluation
(According to Kikpatrick)
Results Did the training impact achievements

of organizational goals? → KPIs
Behavior Did the training lead to changing

behavior at the participant‘s daily
work? → Behavior Evaluation
Learning Have the participants acquired

knowledge as it was intended? →
Tests
Reaction What are the immediate reactions of

the participants after the training? →
Questionnaire
Learning Curve
Maturity Level
Maximum Level
Potential
Peak
Age
Career Step
83
How Did these Guys Let their Talent Grow?
Factors driving Talent Development
Internal Factors External Factors

Ambitions and fun to The opportunity to practice
practice talent-related talent-related tasks
tasks
A personal long-term
A realistic understanding mentor-relationship
of one‘s potential characterized by mutual
trust
A personal vision about
ones future being The right point of time to
leverage talent
Active search for
opportunities and Cooperation with
supporters complementary talented
people
Building network
relationships Training and support
One‘s ability to present Early successes
him-/herself positively
Strong networks
84
Factors that drive Development
Job Assignments
1 Promote high performers quickly
2 Build skills to boost career prospects
3 Fast rotation and advancement
4 Roles with P&L responsibility
5 Special project opportunities
6 On-the-job training
Coaching Feedback
7 Told my strengths and weaknesses
8 360°feedback
9 Candid, insightful feedback
10 Informal coaching from boss
Mentoring
11 Great mentor
12 Great senior role models
13 Mentoring advice on development
Training
14 Traditional classroom training
Source: Michaels, E; Handfield-Jones, H; Axelrod, B. 2001,

The war for talent, Boston, Harvard Business School Press.
Talent Review as an essential Part in the

Performance Management Cycle
During April to August

cascaded Talent Review
Meetings take place at
all business units
85
Performance/Potential Grid
A1 A2
High Plan next move Apply multiple
Provide extra development and
C1 coaching retention measures
Performance
Improvement
Measures A3
Potential Identifiy next
development
opportunity
B
Keep in Place
Low C2
Manage Out
Low Performance High
Source: Adapted from McKinsey: The War for Talent (2001)
Talent Review Meeting Structure
Executive Peers from

Review Meeting above Business other business
Participants Head units
Facilitator
(Business Unit Business
HR Director) Unit Head
Direct
Reports
86
Objectives of Talent Review
All employees in a business are ranked area

according to predefined criteria such as
performance and potential
Future development measures are agreed for all

A Players
Succession plans for all key positions are agreed
Common performance and talent mindset among

managers participating in talent reviews
Stretch Role Attributes
Acceptable Developmental Appropriate Content

Risk Exposure
Position must provide Position must offer the
developmental challenges opportunity to develop the
without endangering business or technical
business unit performance. expertise:.
Appropriate Tenure Management

Stretch role must be Responsibilities
structured to permit Position must provide
remaining in the role for an leadership experience as
appropriate amount of time. well as team-based work.
Acceptable Internal Significant Exposure to
Turnover Pressure
Position must allow for Position must have
frequent internal turnover significant performance
without harming demands.
organizational interests.
Employee Support
Broad Company Exposure Position must provide the
Position must provide broad employee with access to
exposure to company developmental resources
business practices. and organizational support.
87
Career Counseling at Deloitte Consulting
Deloitte Consulting senior-management team

assigns senior line managers as counselors
Counselors role consists of three elements

– Developmental Guidance
– Advising Employee Movement
– Reviewing Talent
HR provides training in coaching skills and the

developmental resources available to employees
Counselors’ preparation and accessibility is

evaluated via counselees’ upward feedback,
which figures in manager reviews
Career Paths
Predefined job sequences Division

Manager
with growing responsibility
District Technical
Provide transparency to Manager Project Lead
employees regarding
– Job Requirements Unit Project
– How to move to higher level Manager Engineer
positions
Management
Unit Engineer
Require distinct and Assistant
homogeneous job
Management Technical
categories Trainee Engineer
May reduce flexibility of a

Junior
natural internal labor Entry Level
Engineer
market
Management Expert
88
Junior Executive Board
Kickoff Top-Management Presentation
Workshops
1* 6 1 6 1 6 1
Project work
Strategic topics Combination of workshops

and project work
Project coaching
Benchmarking
Top-management sponsorship
Networking
Multiple members per topic
Presentation of concepts to
top-management
* weeks
89

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HUMAN RESOURCE

 Born 1966 and raised in Tübingen/Germany

 Bohlander, G, Snell, S, Sherman, A, 2001, 12th ed. Managing

 Introduction  Performance Management

 Job Analysis  Compensation & Benefits

 Employer Branding  Training & Development

Prof. Dr. Armin Trost

 Human Resource Management – Definition

 Contribution of Human Resource Management to

 Macrotrends, which drive future challenges of

Employees = Human Beings

Skills, Knowledge &

All planned and controlled activities

From Problems to Solutions

 What is the problem in terms of numbers? Who has

 What are the major causes and drivers of the

 What would the problem cost the company if it would

 What is the core of the solution? How does the

 23% of all new employees (100 new hires anually) do

 One cause could be seen in lacking quality (validity) of

 Lost added value of 14.000 Euro per underperforming

 Strutcturred interviews conducted through multiple

 The solution can solve the problem by 32%. Benefit =

 Which capabilities do  How can we achieve

What does this

Move from „tranformational“ to „tactic“ Tasks

Median Proportion of HR Budget

Changing Generations and Industries

Relative changes compared to 2005

115 USA Population in 2005 (in Mio.)

90 Source: U.S. Census Bureau, Population

Major Challenges of Human Resource

 Globalization and global competition

 Change from the hand to knowlege worker

 Fast changing markets

 Cost pressure and productivity

 Changing values in society

Prof. Dr. Armin Trost

 Target Group Segmentation

 Definition: Job, Position

 Linkage between job analysis with other human

 Methods of job analysis

 Focus: Critical Incident Technique

 Content and limitations of job descriptions

Required but not Mission-

ABB Leadership Competency Model

Job Position Employee

Senior Specialist Senior Specialist CRM Garth McGrath

Teamwork Teamwork Teamwork

Presentation Presentation Presentation

Project Mgmt Project Mgmt Project Mgmt

Mobility Mobility Mobility

SAP R/3 SAP R/3

Jobs, Positions and Employees

Organizational Job Family,

Job Analysis Impacts different HR Activities

Compensation Employee Layoff

Application Job Analysis

Job Posting Requisition

Born 1966 and raised in Tübingen/Germany

Bohlander, G, Snell, S, Sherman, A, 2001, 12th ed. Managing

Introduction Performance Management

Job Analysis Compensation & Benefits

Employer Branding Training & Development

Human Resource Management – Definition

Contribution of Human Resource Management to

Macrotrends, which drive future challenges of

What is the problem in terms of numbers? Who has

What are the major causes and drivers of the

What would the problem cost the company if it would

What is the core of the solution? How does the

23% of all new employees (100 new hires anually) do

One cause could be seen in lacking quality (validity) of

Lost added value of 14.000 Euro per underperforming

Strutcturred interviews conducted through multiple

The solution can solve the problem by 32%. Benefit =

Which capabilities do How can we achieve

Globalization and global competition

Change from the hand to knowlege worker

Fast changing markets

Cost pressure and productivity

Changing values in society

Target Group Segmentation

Definition: Job, Position

Linkage between job analysis with other human

Methods of job analysis

Focus: Critical Incident Technique

Content and limitations of job descriptions

What are major activities?

The CIT as part of job analysis involves the

What are specific challenges

What will successful job

Which particular behaviors

How can you determine

Name of the Job Responsibilities,

Job-related aspects change over time

Changing business environments required

Tasks of employees reflect their talents,

Employees are responsible to actively identify

Cooperation in work teams and changing,

At Gore you'll find direct communication, a team orientation, and

Definition: Employer image, employer brand,

Impact of an employer brand

Characteristics of strong employer brands

Building an employer brand

Types of employer positioning

Employer branding to the inside

Meaning of Web 2.0

Overall a strong employer brand provides an

As such an employer brand offers a clear

The answer must be …

Focus on Company itself

Smells new business opportunities

Be passionate, engaging, cosmopolitan, inspiring, connected, ambitious, perfect,

A Case that didn‘t work

At The Ritz-Carlton, our Ladies &

The Ritz-Carlton fosters a work

Employee Blogs (e.g. Sun, Yahoo!, Festo)

Video-Streams and potcasts about the

References on public sites which guide

Current changes that impact labor market

Innovation is the main factor for competitiveness

Growing importance of tactic tasks

Shortage of talented and qualified candidates

Decreasing loyalty of highly qualified employees

Growing transparency and speed of global labor

Growing occurence of competitive actions and

Passive Public Job Posting

Public Labor Agency

Search in Public Job Boards

Search in Corporate Talent Pools

Active Talent Scouting

Direct Competition with Direct and immediate