YHUMRES MIDTERMS | PCLM

Chapter 7: RECRUITING, SELECTING, TRAINING and Basic Selection Criteria

DEVELOPING EMPLOYEES Education and Experience Skills and abilities
Personal Characteristics Hiring for fit
RECRUITING
Popular Selection Techniques
 Process of developing a pool of qualified applicants
 Applications and background checks
who are interested in working for the organization
 Ask applicants to fill out an employment
 Goals
application
 Optimization of the qualified applicant pool
 Weighted application blank
 Generation of a pool of applicants who are
 Biodata application blank
both qualified and interested
 Employment tests: Measure characteristics of an
 Providing an honest and candid assessment
individual
of available jobs and opportunities
 Cognitive ability tests
Organizational and Individual Goals in Recruiting  Psychomotor ability tests
Organizational Goals Individual Goals
 Personality tests and integrity tests
 Attract pool of  Meet work-related
qualified applicants goals  Work simulations or work samples
 Keep pool at a ?  Meet personal goals  Personal interviews
manageable size  Structured employment interview
 Provide realistic job  Address personal  Semi-structured employment interview
previews needs
 Unstructured employment interview
Internal and External Recruiting  Situational interview
 Internal recruiting: Process of looking inside the  Other selection techniques
organization for existing qualified employees who are  References and recommendations
eligible for promotion  Assessment centers
 Job posting
A Sample Selection Process
 Supervisory recommendations
 External recruiting: Process of looking to sources
outside the organization for prospective employees
Advantages and Disadvantages of Internal and
External Recruiting
 Internal Recruiting
Advantages Disadvantages
Increases motivation May foster stagnation
Sustains knowledge and culture May cause a ripple effect
 External Recruiting
Advantages Disadvantages
Brings in new ideas May hurt motivation
Avoids the ripple effect Costs more
External Recruiting and Realistic Job Previews
 Methods of external recruiting include:
 Word-of-mouth recruiting
 Advertisements
 Employment agencies
 College placement offices
 Digital recruiting
 Realistic job previews (RJP): Technique for
ensuring that job seekers understand the actual The Selection Decision - Multiple Indicators
nature of jobs available to them  By using multiple approaches, firms can
counterbalance the measurement error in one
SELECTING selection technique against another
Steps in the Selection Process  Banding
o Permits firms to select applicants from some
underrepresented group in the organization
while still ensuring high performance
standards

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SELECTION ERRORS  Organizational development (OD)
 Firms make at least one occasional selection error  System-wide effort to increase the
and hire the wrong person organization’s overall performance via
 False positives: Applicants who are planned interventions
predicted to be successful and are hired but  Techniques used include survey feedback,
who ultimately fail third-party peacemaking, and process
 False negatives: Applicants who are consultation
predicted to fail and are not hired but who
would have been successful if hired Chapter 9: COMPENSATION AND BENEFITS
Reliability and Validity Compensation and Benefits
 Reliability: Consistency of a particular selection  Compensation: Set of rewards that organizations
device provide to individuals for their willingness to perform
 Test-retest reliability, alternate-forms tasks
reliability, and internal consistency reliability  Benefits: Various items of value beyond wages that
 Validity: Scores on a test are related to performance employees receive from the organization
on a job  Rewards
 Criterion-related validity: The extent to  Incentives
which a selection technique accurately
Basic Purposes of Compensation
predicts elements of performance
 Provide appropriate and equitable rewards to
Legal and Effectiveness Issues in Recruiting and employees
Selection
 Help employees focus on activities that the
 Legal issues
organization considers important
 Organization faced with a prima facie case of
 Increase employee efforts along desired lines
discrimination must prove that the basis for
the selection decision was job-related Internal and External Equity
 Demonstrated by establishing the  Internal equity: Comparisons made by employees to
validity of a selection instrument other employees within the same organization
 Evaluating recruiting and selection  External equity: Comparisons made by employees
 Utility analysis: Determines the extent to to others employed by different organizations
which a selection system provides real performing similar jobs
benefit to the organization  Pay surveys: Surveys of compensation paid
to employees by other employers in a
TRAINING AND DEVELOPMENT particular geographic area, industry, or
Assessing Training and Development Needs occupational group
Wage versus Salaries
 Wages: Hourly compensation paid to operating
employees
 Time acts as the basis for determining wages
 Salary: Income paid to an individual on the basis of
Training and Development Techniques performance, not on the basis of time
 Work-based programs Strategic Options for Compensation
 Apprenticeships: Combination of on-the-job
training and classroom instruction
 Vestibule training: Job is performed under a
condition that closely simulates the real work
environment
 Instructional-based programs
 Lectures or discussions
 Computer-assisted instruction Determinants of Compensation Strategy
 Programmed instruction  Overall organizational strategy
 Management development  Ability to pay
 Involves more generalized training for future  Ability to attract and retain employees
managerial roles and positions  Ability to bargain with the unions
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Job-Evaluation Methods under the EC program may be enjoyed
 Classification system: Attempts to group sets of simultaneously with benefits under the Social Security
jobs together into clusters program effective June 1984. 1.
 Point system: Requires managers to quantify value  The Philippine Health Insurance Corporation
of various elements of specific jobs in objective terms (PhilHealth) is a government corporation attached to
 Point manual: Carefully and specifically the Department of Health. It administers the National
defines the degrees of points from first to fifth Health Insurance Program, which was established to
 Factor-comparison method: Assesses jobs provide health insurance coverage and ensure
on a factor-by-factor basis using a factor- affordable and accessible health care services for all
comparison scale as a benchmark Filipinos.
Pay for Knowledge and Skill-Based Pay  The Home Development Mutual Fund (HDMF),
 Pay for knowledge: Involves compensating more popularly known as the Pag-IBIG Fund, is a
employees for learning specific information Philippine government-owned and controlled
 Skill-based pay: Rewards employees for acquiring corporation under the Department of Human
new skills Settlements and Urban Development responsible for
the administration of the national savings program
Wage and Salary Administration
and affordable shelter ...
 Ongoing process of managing a wage and salary
structure NON MANDATED BENEFITS
 Issues related to compensation  HEALTH PLAN/WELLNESS PROGRAM
 Pay secrecy: Extent to which the  COMPANY RETIREMENT INCENTIVES
compensation of any individual in an  PREREQUISITE OR PERK
organization is secret Executive Compensation
 Pay compression: Equal pay granted to  Provided in two forms
employees with different levels of experience,  Base salary
or performance abilities, or both  Some form of incentive pay
 Pay inversion: New employees are  Bonus
paid more than experienced  Stock-option plan
employees
Evaluating Compensation and Benefit Programs
Nature of Benefits Programs  Organizations that do not offer competitive pay and
 Most organizations provide their employees with an benefits packages find it difficult to attract employees
array of benefits  Also leads to high rates of voluntary turnover
 Cost of benefits programs  The efficiency of benefit programs depends on
 Organizations spend huge amounts on effective communication with employees
benefits
 Employees are asked to bear costs of Chapter 10: PERFORMANCE APPRAISAL AND
benefits CAREER MANAGEMENT
 Purposes of benefits programs
 Attracts better-qualified people Performance Appraisal and Performance
 Affects job satisfaction and subsequent Management
turnover  Performance appraisal: Specific and formal
evaluation of an employee
MANDATED BENEFITS
 Helps determine the degree to which an
 Social Security System employee is performing his or her job
 is a social insurance program that aims to provide effectively
protection to its members and beneficiaries. SSS  Performance management: General set of activities
members can avail of maternity, sickness, carried out by the organization to change (improve)
disability, retirement, funeral and death benefits. employee performance
 Government Service Insurance System ( GSIS)
Importance of Performance Appraisal
serves as the counterpart social insurance
 Provides a benchmark to assess the adequacy of
program for those who work in government.
recruitment and selection processes
 The Employees' Compensation (EC) program aims
to assist workers who suffer work-connected sickness  Important for legal reasons
or injury resulting in disability or death. The benefits  Plays a role as part of the larger performance-
management process
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 Basis of incentive pay systems designed to improve  Paired-comparison method: Each
motivation and performance individual employee is compared with every
Goals of Performance Appraisal other individual employee, two at a time
 Provide valid and reliable measure of employee  Specific rating methods
performance in relevant dimensions  Graphic rating scale: Statement or question
 Documentation about some aspect of an individual’s job
performance
 Improve job performance, which requires that
employees receive:  Critical incident method: Relies on
instances of especially good or poor
 Accurate feedback
performance on the part of the employee
 Guidance
 Behaviorally anchored rating scale
Performance Appraisal Process (BARS): Combination of the graphic rating
scale and the critical incident method
 Behavioral observation scale (BOS):
Developed from critical incidents like a BARS
 Uses more critical incidents to define
specifically all measures necessary
for effective performance
 Management-by-objectives(MBO): System
is based largely on the extent to which
individuals meet their personal performance
objectives
Roles in the Performance-Appraisal Process
Examples of Graphic Rating Scales
 Role of the organization
 Develop the appraisal process
 Determine timing of appraisals
 Ensure availability of clear and specific
standards
 Role of the rater
 Observe performance and process
information gained from observation
 Communicate results and consequences
 Prepare ratee to perform at desired levels
 Role of the ratee
 Maintain a clear and unbiased view of
performance
 Collect adequate information to avoid
disagreements during the process
Sources of Information for Performance Appraisal Behaviorally Anchored Rating Scales

Methods for Appraising Performance

 Ranking methods versus rating methods
 Simple ranking method: Manager gives a
rank order to each member of a particular
work group from top to bottom or from best to
worst

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The Traditional Model of Career Stages
Rating Errors in Performance Appraisal
 Contrast error: When people are compared against
one another instead of against an objective standard
 Distributional errors: When rater tends to use only
one part of the rating scale
 Severity
 Leniency
 Central tendency
 Halo error: One positive performance characteristic
may cause the manager to rate all other aspects of
performance positively
 Horns error: When the manager downgrades other
aspects of an employee’s performance because of a
single performance dimension Older Workers and Decision to Retire
Contextual Performance  Curvilinear relationship exists between age and
 Tasks an employee does on the job that are not performance
required as part of the job but that still benefit the  Performance is highest when workers are
organization youngest and older
 Organizational citizenship behaviors include:  Retired individuals are most likely to retire when:
 Willingness to stay late at work to finish  Adequate financial resources are available
deadlines  Health makes it difficult to continue work
 Helping co-workers
Individual and Organizational Perspectives on
 Performing tasks that help the organization
Career Planning
Evaluating the Performance-Appraisal Process
 Most firms claim to have dropped performance
appraisal since the usage of stack ratings have led to:
 Backstabbing
 Low levels of teamwork
 Feelings of frustration
 Performance-management technologies enable
collection of real-time performance data
Legal Issues in Performance Appraisal
 Appraisals showing evidence of disparate impact
must be validated in the same manner as any Steps in Career Planning
selection technique
 Show that rating is job related
 Demonstrate that raters:
 Can observe rated behaviors
 Have training to help them appraise
performance better Career-Development Issues and Challenges
CAREER  Career-counseling programs
 Set of experiences and activities that people engage  Include formal and informal programs
in related to their job and livelihood over the course of  Concern over family-friendly work practices
their working life  Dual-career and work-family issues
 Specific jobs performed by a person  Balancing family needs with work demands
 Responsibilities and activities that constitute  Work stress and family stress are connected
the job
 Movements and transitions between jobs
 Individual’s overall assessment
 Feelings of job satisfaction

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