Christopher Herlihy 11/19/2012 Human Resource Management Professor Vittoria Chapter 7 Training and Development Training and Development

(T&D) Training and development (T&D) Heart of a continuous effort designed to improve employee competency and organizational performance Training Provides learners with the knowledge and skills needed for their present jobs Development Learning that goes beyond todays job and has a more long-term focus Prepares employees to keep pace with organization as it changes and grows

Strategic Benefits of T&D Employee satisfaction Improved morale Higher retention Lower turnover Improved hiring better bottom line Satisfied employees produce satisfied customers

T&D Methods Instructor-Led Case Study Behavior Modeling Role Playing Business Games In-Basket Training On-the-Job Training Job Rotation Internships Apprenticeship Training

Training & Development Delivery Systems Corporate Universities Colleges and Universities Community Colleges Online Higher Education Videoconferencing Vestibule Training Computer-Based Systems Video Media E-Learning Simulators

Management Development All learning experiences resulting in upgrading of skills and knowledge needed in current and future managerial positions Mentoring Approach to advising, coaching, and nurturing, for creating practical relationship to enhance individual career, personal, and professional growth Orientation Strives to inform them about company, job, and workgroup Implementing Human Resources Development Programs Often difficult Many managers are action oriented Feel they feel are too busy to engage in T&D efforts Qualified trainers must be available Requires high degree of creativity

Metrics for Evaluating Training and Development Participants Opinions Extend of Learning Behavioral Change Accomplishment of T&D Objectives Benchmarking

Chapter 8 Performance Management and Appraisal Performance Management Goal-oriented process ensuring organizational processes are in place to maximize productivity of employees, teams, and organization Performance Appraisal Defined Formal system of review and evaluation of individual or team task performance Uses of Performance Appraisal Human resource planning Training and development Career planning and development Compensation

Labor Unions and Performance Appraisal Have traditionally stressed seniority as basis for promotions and pay increases May vigorously oppose use of management-designed performance appraisal system Improvement Potential Many of criteria used focus on past Cannot change past Should emphasize future, including behaviors and outcomes needed to develop employee, and achieve firms goals

Responsibility for Appraisal Immediate supervisor Subordinates Peers and team members Self-appraisal Customer appraisal

The Appraisal Period Usually annually or semiannually Period may begin with employees date of hire All employees may be evaluated at same time

Performance Appraisal Methods 360-Degree Evaluation Rating Scales Critical Incidents Essay Work Standards Ranking Paired Comparisons Forced Distribution Behaviorally Anchored Rating Scales (BARS) Result-Based Systems

Problems in Performance Appraisal Appraiser discomfort Lack of objectivity Halo/horn error Leniency/strictness Central tendency Recent behavior bias Personal bias

Manipulating the evaluation Employee anxiety

Characteristics of Effective Appraisal System Job-related criteria Performance expectations Standardization Trained appraisers Continuous open communication Conduct performance reviews Due process

Chapter 9 Direct Financial Compensation Compensation: An Overview Compensation Direct financial compensation Indirect financial compensation (benefits) Nonfinancial compensation

Equity in Financial Compensation Financial equity External equity Internal equity

Exempt and Nonexempt Employees Exempt employees Nonexempt employees Job Evaluation Firm determines relative value of one job in relation to another Ranking Classification Factor comparison Point

Hay guide chart-profile method

Broadbanding Technique that collapses many pay grades (salary grades) into few wide bands to improve organizational effectiveness Lateral employee development Develop employee skills and encourage team focus Employee attention directed away from vertical promotional opportunities

Company-Wide Pay Profit sharing Gainsharing Scanlon plan

Sales Representative Compensation Straight salary Straight commission Endless variety of part-salary, part-commission combinations

Contingent Workers Compensation In most cases, contingency workers earn less pay than permanent counterparts Far less likely to receive health or retirement benefits Trends & Innovations: Are Top Executives Paid Too Much? Peter Drucker recommends 20-to-1 salary ratio between senior executives and rank-andfile white-collar workers Ratio of chief executives compensation to pay of average production worker jumped to 431-to-1 90% of investors think executives are overpaid Determining Executive Compensation Firms typically prefer to relate salary growth for highest-level managers to overall corporate performance

Types of Executive Compensation Base salary Short-term incentives or bonuses Stock option plans Performance-based pay Executive benefits (perks) Golden parachutes

Chapter 10 Benefits, Nonfinancial Compensation, and Other Compensation Issues Benefits (Indirect Financial Compensation) All financial rewards that are not paid directly to the employee Mandated Benefits (Legally Required) Social security Unemployment compensation Workers compensation Family and Medical Leave Act of 1993 (FMLA)

Discretionary Benefits (Voluntary) Payment for time not worked Health care Life insurance Retirement plans Disability protection Employee Stock Option Plans (ESOP) Supplemental Unemployment Benefits (SUB) Employee services Premium pay

Vacation Days Taken a Year Italian take 42 days French take 37 days Brazilians take 34 days Canadians take 26 days Americans take 13 days

Forms of Managed-Care Health Organizations Health maintenance organizations (HMOs) Preferred provider organizations (PPOs) Point-of-service (POS) Exclusive provider organizations (EPOs)

Consumer-Driven Health-Care Plans Defined-contribution health-care plan Health savings account (HSA) Flexible spending account (FSA)

Major Medical Benefits Major Medical Dental Vision Long-term care

Other Compensation Issues Severance pay Comparable worth Pay secrecy Pay compression

Chapter 10 Benefits (35) COBRA: Health insurance plan which allows an employee who leaves a company to continue to be covered under the companys health plan, for a certain time period and under certain conditions. The name results from the fact that the program was created under the Consolidated Omnibus Reconciliation Act. The system is designed to prevent employees who are between jobs from experiencing a lapse in coverage.

HIPAA: A law mandating that anyone belonging to a group health insurance plan must be allowed to purchase health insurance within an interval of time beginning when the previous coverage is lost The law protects employees, especially those with long term health conditions who may be reluctant to leave jobs because they are afraid pre-existing condition clauses will limit coverage of any such conditions under a new insurance plan, from losing losing health insurance due a change in employment status The law also creates standards dealing with the privacy of health information, which helps prevent improper use of ones medical record

ERISA: The Employee Retirement Income Security Act of 1974 (ERISA) is a federal law that sets minimum standards for pension plans in private industry. ERISA does not require any employer to establish a pension plan. It only requires that those who establish plans must meet certain minimum standards

OWBPA: In 1990, Congress passed the Older Workers Benefit Protection Act (OWBPA) which amended the Age Discrimination in Employment Act (ADEA) to safeguard older workers employee benefits from age discrimination Even with the OWBPA amendments, employees may observe the terms of bona fide employee benefit plans such as retirement, pension, or insurance plans that contain agebased distinctions, but only if the distinctions are cost-justified. Employees must pay the same amount for each benefit provide to an older worker as is paid for a younger worker

Family and Medical Leave Act of 1993 (FMLA) The Family and Medical Leave Act of 1993 (FMLA) is a United States federal law requiring covered employers to provide employees job-protected and unpaid leave for qualified medical and family reasons. Qualified medical and family reasons include: personal or family illness, family military lave, pregnancy, adoption, or the foster care placement of a child. The FMLA is administered by the Wage and Hour Division of the United States Department of Labor

PPA: One of the most comprehensive reforms of the national pension laws passed in August 2006 by the House of Representatives. The act fortified the previous loophole-infested pension insurance system by increasing the minimum funding requirements for various pension plans.

Patient Protection and Affordable Care Act of 2010 (PPACA) PPACA is a United States federal statue signed into law by President Barack Obama on March 23, 2010. Together with the Health Care and Education Reconciliation Act, it represents the most significant regulatory overhaul of the U.S. healthcare system since the passage of Medicare and Medicaid in 1965 PPACA is aimed primarily at decreasing the number of uninsured Americans and reducing the overall costs of health care.