Agile Methodologies in

Human Resource
Management
AGILE IN HUMAN
RESOURCES
Overview of Agile Principles and Values for HR

• Agile principles, derived from the Agile Manifesto,

emphasize flexibility, collaboration, and responsiveness
to change. In HR, these principles are adapted to create
a people-centric approach that focuses on fostering
innovation, adaptability, and continuous improvement.
Overview of Agile Principles and Values for HR
•Individuals and Interactions Over Processes and Tools
Prioritize human relationships and collaboration over rigid processes.
•Responding to Change Over Following a Plan
Embrace adaptability to address evolving organizational needs.
•Customer Collaboration Over Contract Negotiation
In HR, the "customer" could be employees or managers; fostering
partnerships over hierarchical demands is key.
•Delivering Value Frequently
Implement short, iterative cycles to achieve quick wins and consistent
improvements.
•Continuous Feedback and Improvement
Establish regular feedback loops to refine practices and processes.
Key Benefits of Adopting Agile in HR Management
•Enhanced Employee Engagement
Agile promotes transparency, collaboration, and empowerment, which increase employee
satisfaction and retention.
•Improved Responsiveness
Agile HR adapts to organizational and market changes more efficiently, aligning HR goals
with business objectives.
•Streamlined Recruitment and Onboarding
Agile recruitment processes focus on flexibility and speed, ensuring timely hiring of top
talent.
•Increased Innovation
By fostering cross-functional collaboration, Agile HR creates an environment where
innovative ideas thrive.
•Data-Driven Decisions
Agile emphasizes iterative experiments and data analysis to inform HR policies and
practices.
•Efficient Performance Management
Agile HR replaces annual reviews with continuous feedback cycles, improving performance
and development.
Differences Between Traditional and Agile HR Approaches

Aspect Traditional HR Agile HR

Process-oriented and People-centric and

Focus
compliance-driven value-driven

Planning Long-term, rigid plans Short, iterative cycles

Performance
Annual reviews Continuous feedback
Management
Hierarchical and Collaborative and
Decision-Making
centralized decentralized
Change
Reactive Proactive and adaptive
Management
Standardized, slow Dynamic, flexible, and
Recruitment
processes iterative processes
Introduction to Agile Frameworks Relevant to HR
Functions
1.Scrum
1. Use in HR: Recruitment campaigns, training programs, or project-based initiatives can be
managed through sprints.
2. Key Practices: Daily stand-ups, sprint planning, and retrospectives.
2.Kanban
1. Use in HR: Visualizing workflows for tasks like hiring, onboarding, and performance evaluations.
2. Key Practices: Limit work in progress, visualize tasks on a board.
3.Lean
1. Use in HR: Eliminate waste in processes like candidate selection or policy development.
2. Key Practices: Value stream mapping, continuous improvement.
4.Design Thinking
1. Use in HR: Enhancing employee experiences, such as crafting user-centric onboarding journeys.
2. Key Practices: Empathy mapping, prototyping, iterative feedback.
5.OKRs (Objectives and Key Results)
1. Use in HR: Setting and aligning goals across teams and departments.
2. Key Practices: Quarterly goal setting, regular reviews.
AGILE FRAMEWORKS
FOR HR
Scrum

• Scrum is a management framework that teams use to

self-organize and work towards a common goal. It
describes a set of meetings, tools, and roles for efficient
project delivery. Much like a sports team practicing for a
big match, Scrum practices allow teams to self-manage,
learn from experience, and adapt to change.
Scrum
Scrum Roles in HR

• Product Owner (PO):

Represents the stakeholders, defines priorities, and ensures HR
initiatives align with organizational goals. For HR, the PO could be
an HR leader managing initiatives like recruitment or onboarding.
• Scrum Master:
Facilitates the Scrum process, removes obstacles, and ensures
the HR team adheres to Agile practices. In HR, this role could
help streamline processes like employee feedback or training
rollouts.
• Development Team:
A cross-functional team responsible for delivering HR initiatives
(e.g., recruiters, HR specialists etc)
Scrum Ceremonies in HR

•Sprint Planning:
Define what HR initiatives (e.g., filling open positions or launching a wellness
program) will be completed during a sprint.
•Daily Standups:
Short, daily meetings where the HR team discusses progress, challenges, and next
steps for ongoing tasks.
•Sprint Review:
Present completed HR deliverables (e.g., a new onboarding plan) to stakeholders
for feedback.
•Sprint Retrospective:
Reflect on what went well, what could improve, and actions for the next sprint,
focusing on improving HR processes.
Scrum Artifacts in HR

• Product Backlog:
A prioritized list of HR tasks, such as filling open roles,
launching training programs, or improving employee
engagement.
• Sprint Backlog:
A subset of the product backlog selected for the current
sprint.
• Increment:
The completed HR output at the end of the sprint (e.g., a
revised benefits policy or a new feedback mechanism).
Understanding Kanban and Optimizing HR Workflow
Management
• Core Principles of Kanban
• Visualize Work:
Use a Kanban board with columns representing different
workflow stages (e.g., "To Do," "In Progress,"
"Completed").
• Limit Work in Progress (WIP):
Set limits to avoid overburdening team members and
ensure smooth task flow.
• Focus on Flow:
Monitor the flow of tasks to identify bottlenecks and
improve efficiency.
Understanding Kanban and Optimizing HR Workflow
Management
• Applications in HR
• Recruitment Pipeline:
Columns could represent stages like "Sourcing,"
"Screening," "Interviewing," and "Offer Extended."
• Onboarding Workflow:
Use Kanban boards to track the onboarding process for
new hires, such as "Document Submission," "Training
Scheduled," and "First Week Completed."
• Employee Feedback Cycle:
Visualize progress for collecting, analyzing, and acting on
feedback.
Applying Lean Principles to HR

• Lean focuses on eliminating waste, improving value

delivery, and maximizing resource efficiency.
Key Lean Principles in HR

• Value Identification:
Focus on activities that deliver value to employees and
the organization, such as streamlined onboarding or
career development.
• Eliminate Waste:
Identify and remove inefficiencies, such as redundant
approval processes or excessive paperwork.
• Continuous Improvement (Kaizen):
Encourage small, ongoing improvements in HR
processes.
Lean Practices in HR

•Value Stream Mapping:

Visualize the steps in an HR process (e.g., recruitment) to
identify delays or unnecessary steps.
•Standardized Workflows:
Create clear, repeatable processes for common HR tasks
like performance reviews.
•Just-in-Time Delivery:
Deliver HR services when they are needed, reducing
delays and resource waste.
Comparing Agile Frameworks and Selecting the Best Fit
for HR
Agile Performance
Management
 Basics of Performance
Appraisal
• The performance appraisal process steps
1. Sets work standards
2. Assesses performance
3. Provides feedback to the employee

Copyright © 2017 Pearson Education, Ltd. 9-21

 Why Appraise Performance?

Five reasons:
1. Used for pay, promotion, and retention
decisions
2. Links performance management to
company goals
3. The manager can correct deficiencies
and reinforce strengths
4. With appraisals employee’s can review
career plans
5. Training needs are identified

Copyright © 2017 Pearson Education, Ltd. 9-22

Defining the Employee’s Goals and
Performance Standards

1. Goals
2. Job dimensions or
Traits
3. Behaviors or
Competencies

Copyright © 2017 Pearson Education, Ltd. 9-23

Improving Performance: HR Tools for Line
Managers and Small Businesses

How to set Effective Goals

Let’s talk about it…

Copyright © 2017 Pearson Education, Ltd. 9-24

 Who Should Do the Appraising?

1. Peer Appraisals
2. Rating Committees
3. Self Ratings
4. Appraisal by
Subordinates
5. 360-Degree
Feedback

Copyright © 2017 Pearson Education, Ltd. 9-25

 Techniques for Appraising
Performance

1. Graphic Rating Scale

2. Alternation Ranking
3. Paired Comparison
4. Forced Distribution
5. Critical Incident Method

Copyright © 2017 Pearson Education, Ltd. 9-26

 Techniques for Appraising
Performance continued

6. Narrative Forms
7. Behavior Anchored
Rating Scale
8. Mixed Standards Scales
9. Management by
Objectives (MBO)
Copyright © 2017 Pearson Education, Ltd. 9-27
Computerized and Web-Based
Performance Appraisal

Copyright © 2017 Pearson Education, Ltd. 9-28

Electronic Performance
Monitoring

Copyright © 2017 Pearson Education, Ltd. 9-29

 Additional Techniques

• Conversation
Days

• Appraisal in
Practice

Copyright © 2017 Pearson Education, Ltd. 9-30

 Dealing with Rater Error
Appraisal Problems
• Potential appraisal problems
o Unclear standards
o Halo Effect
o Central Tendency
o Leniency or Strictness
o Recency Effects

Copyright © 2017 Pearson Education, Ltd. 9-31

The Need for Fairness

Copyright © 2017 Pearson Education, Ltd. 9-32

 Managing the Appraisal Interview

• Appraisal Interview – an interview in which

the supervisor and subordinate review the
appraisal and make plans to remedy
deficiencies and reinforce strengths.

Copyright © 2017 Pearson Education, Ltd. 9-33

 How to Conduct the
Appraisal Interview

• Prepare
• Plan
• Measure Success
• Date to Complete
• Coach

Copyright © 2017 Pearson Education, Ltd. 9-34

 Guidelines to Conducting
the Appraisal Interview

o Objective data
o Don’t get personal
o Encouragement
o Agreement

Copyright © 2017 Pearson Education, Ltd. 9-35

 How to Handle a Defensive
Subordinate

• Recognize behavior
• Never Attack defenses
• Postpone Action
• Recognize Limitations

Copyright © 2017 Pearson Education, Ltd. 9-36

How to Handle a Formal
Written Warning

Copyright © 2017 Pearson Education, Ltd. 9-37

 Performance Management

• Performance Management – is the

continuous process of identifying,
measuring, and developing the
performance of individuals and teams and
aligning their performance with the
organization’s goals.

Copyright © 2017 Pearson Education, Ltd. 9-38

 Total Quality Management and
Performance Appraisal
• Cease Dependence
• Continuous Improvement
• Extensive Training
• Drive out Fear
• Remove Barriers
• Self Improvement

Copyright © 2017 Pearson Education, Ltd. 9-39

AGILE APPROACHES AND USES OF
PERFORMANCE MANAGEMENT
Steps to Determine Staff Development Needs

• Conduct a Skills Gap Analysis:

• Assess Current Skills: Evaluate employees' existing skills
and competencies through methods such as self-assessments,
supervisor evaluations, performance reviews, or testing.
• Identify Required Skills: Clarify the competencies and skills
required to excel in current roles or adapt to anticipated
changes (e.g., due to new technology, processes, or business
strategies).
• Compare Results: The difference between the required skills
and existing skills forms the skills gap that needs to be
addressed through development initiatives.
Steps to Determine Staff Development Needs

• Use Performance Appraisals:

• Review the results of periodic performance evaluations
to identify areas where employees struggle or where
improvement opportunities exist.
• Pay attention to recurring themes, such as consistently
unmet targets, behavioral issues, or underdeveloped
technical skills.
• Focus on developmental goals outlined during these
reviews.
Steps to Determine Staff Development Needs

• Engage in Employee Feedback and Surveys:

• Conduct surveys, focus groups, or interviews to
understand employees' perspectives on their
professional development needs.
• Ask employees about challenges they face, skills they
wish to improve, and future roles they are interested in
pursuing.
Steps to Determine Staff Development Needs

• Analyze Business Objectives and Strategy:

• Align staff development initiatives with the
organization’s strategic goals, upcoming projects, or
shifts in industry demands.
• For example, if digital transformation is a focus,
employees may need training in new technologies, data
analytics, or digital marketing.
Steps to Determine Staff Development Needs

• Review Job Descriptions and Requirements:

• Regularly update job descriptions to reflect the current
responsibilities and competencies required for each
position.
• Identify any new skills needed for changing job roles or
additional responsibilities that staff must develop.
Steps to Determine Staff Development Needs

• Use Competency Frameworks:

• Develop or leverage existing competency models that
outline the skills, knowledge, and behaviors needed for
specific roles.
• Assess employees’ performance and capabilities against
these competencies to pinpoint gaps.
Steps to Determine Staff Development Needs

• Monitor Industry Trends and Changes:

• Be aware of technological advancements, regulatory
changes, or industry-specific trends that may require
upskilling or reskilling.
• Stay connected with professional associations, attend
conferences, and engage in networking to forecast
potential development needs.
Steps to Determine Staff Development Needs

• Solicit Input from Managers and Team Leaders:

• Managers have direct insights into their teams' day-to-
day operations and can identify skills gaps, potential
training needs, or development opportunities.
• Encourage regular communication between HR and
managers to keep the focus on employee development.
Steps to Determine Staff Development Needs

• Track Employee Career Aspirations:

• Encourage employees to share their career goals during
regular check-ins or formal career development
conversations.
• Align development opportunities with both individual
ambitions and organizational needs.
Steps to Determine Staff Development Needs

• Assess Changes in Technology and Processes:

• Evaluate how new tools, software, or workflows impact
employees' roles and identify the training required for a
smooth transition.
• Implement upskilling programs to help employees
remain effective in their positions and competitive
within their industry.
Steps to Determine Staff Development Needs

• Consider Training Outcomes and Feedback:

• Use data from previous training programs to identify
areas of success and areas that require improvement.
• Gather post-training feedback from employees to
understand their needs better and refine future
programs.
Examples of Potential Development Needs

•Technical Skills Training (e.g., software proficiency, machinery operation)

•Soft Skills Development (e.g., communication, leadership, problem-solving)
•Compliance Training (e.g., health and safety, data protection)
•Leadership and Management Training for potential and existing leaders
•Diversity and Inclusion Workshops
•Customer Service Excellence Programs
Tool to Monitor the Organization as a Total System
• Balanced Scorecard (BSC)
• What It Is: A strategic planning and performance management system that
enables organizations to align business activities to their vision and strategy,
improve communication, and monitor performance against strategic goals.
• How It Works: The BSC uses four perspectives to give a balanced view of the
organization:
• Financial Perspective: Measures financial performance (e.g., revenue growth,
profitability).
• Customer Perspective: Focuses on customer satisfaction, retention, and acquisition
metrics.
• Internal Process Perspective: Assesses key processes that impact customer and
business objectives.
• Learning and Growth Perspective: Evaluates organizational culture, employee training,
development, and innovation.
• Benefits: Provides a holistic view of organizational performance and
interdependencies between different functions.
Tool to Monitor the Organization as a Total System

• Enterprise Resource Planning (ERP) Systems

• What It Is: Integrated software platforms (e.g., SAP,
Oracle, Microsoft Dynamics) that manage core business
processes, such as finance, HR, procurement, supply chain,
and more.
• How It Works: ERPs centralize data, providing real-time
insights into all areas of the business, facilitating cross-
departmental monitoring, and improving decision-making.
• Benefits: ERP systems provide a holistic view of an
organization's operations, increase efficiency, and enable
data-driven decisions.
Tool to Monitor the Organization as a Total System

• Key Performance Indicator (KPI) Dashboards

• What It Is: Interactive dashboards that display real-time
data on a range of key metrics important to the
organization's performance and goals.
• How It Works: KPIs can be customized to reflect
departmental, individual, and overall organizational goals,
providing a clear overview of current performance.
• Benefits: Helps track progress toward objectives, identify
trends, and quickly highlight areas requiring attention.
Tool to Monitor the Organization as a Total System

• Total Quality Management (TQM) Tools

• What It Is: A comprehensive management approach
focused on continuous improvement across all functions.
• How It Works: Utilizes various tools like Pareto
charts, cause-and-effect diagrams, process
flowcharts, and statistical process control to
monitor and improve processes.
• Benefits: Focuses on quality improvements and
customer satisfaction by analyzing every process within
the organization.
Tool to Monitor the Organization as a Total System

• Human Capital Management (HCM) Systems

• What It Is: Systems designed to manage and optimize
employee lifecycle processes, from recruitment to
retirement.
• How It Works: Provides insights into workforce
planning, employee engagement, performance
management, and development needs.
• Benefits: Ensures that employee performance aligns
with organizational goals, offering comprehensive data
to optimize workforce efficiency and effectiveness.
Tool to Monitor the Organization as a Total System

• Organizational Network Analysis (ONA) Tools

• What It Is: Tools that analyze communication and
collaboration patterns within an organization.
• How It Works: Collects data from emails, chat tools,
and project management systems to understand how
employees and teams collaborate.
• Benefits: Provides insights into informal
communication channels, bottlenecks, and areas where
collaboration can be improved, aligning with the
organization's overall system health.
Tool to Monitor the Organization as a Total System

• Business Process Management (BPM) Tools

• What It Is: Software that helps design, model, execute,
monitor, and optimize business processes.
• How It Works: Identifies inefficiencies in workflows and
provides a systematic approach to making business
processes more effective and efficient.
• Benefits: Ensures process optimization is in line with
the organization's strategic objectives, reducing waste
and improving performance.
Tool to Monitor the Organization as a Total System

• Six Sigma and Lean Management Tools

• What It Is: Methodologies focused on improving
processes, reducing waste, and eliminating defects
through data-driven decision-making.
• How It Works: Utilizes tools like DMAIC (Define,
Measure, Analyze, Improve, Control) or Lean tools
to analyze and improve processes.
• Benefits: Improves organizational efficiency and
effectiveness across the board, ensuring all processes
contribute optimally to strategic objectives.
Tool to Monitor the Organization as a Total System

• Performance Management Systems (PMS)

• What It Is: Comprehensive systems that manage and
monitor the performance of employees, teams, and
departments to ensure alignment with organizational goals.
• How It Works: Integrates goal setting, feedback,
appraisals, and performance tracking to keep all employees
on the same page regarding company objectives.
• Benefits: Promotes a culture of accountability and
continuous improvement, ensuring everyone’s performance
contributes to the organizational system.
Tool to Monitor the Organization as a Total System

• ISO Standards and Audits

• What It Is: International standards, such as ISO 9001
(Quality Management), designed to ensure consistent
quality and efficiency across processes.
• How It Works: Organizations adhere to standardized
processes, undergo regular audits, and implement
continual improvement measures.
• Benefits: Ensures the entire organization operates
efficiently and effectively in line with global standards.
Measurement Problem

• In the context of Human Resource Management

(HRM), the Measurement Problem pertains to the
challenges and complexities associated with accurately
measuring and evaluating employee performance,
behaviors, and contributions. It carries a similar essence
of ambiguity and complexity when assessing human
elements in organizational settings.
Problem Analysis
Problems Associated With HR Effectiveness
Performance Appraisals Demotivate Employees

• Why It Happens:
• When performance appraisals are focused solely on
deficiencies, employees may feel undervalued and
demoralized.
• If the process feels punitive or lacks constructive
feedback, it can lead to disengagement.
• The perception that performance ratings are tied to
factors beyond their control, such as external conditions
or ambiguous goals, can further undermine morale.
Performance Appraisals Demotivate Employees

• Solutions:
• Focus on Constructive Feedback and Development: Shift
the conversation from purely evaluative to developmental.
Highlight achievements, identify areas for growth, and co-create
action plans for skill-building and career progression.
• Regular, Ongoing Feedback: Move away from annual or
biannual appraisals to continuous feedback and check-ins. This
keeps communication open, issues addressed in real-time, and
motivation sustained.
• Recognize Contributions: Offer recognition and rewards to
employees based on genuine accomplishments, making them
feel appreciated and engaged.
Performance Appraisals Demotivate Employees
Objectivity of Scores

• Why It Happens:
• Subjectivity in evaluating performance leads to biases and
skewed scores, as evaluations are influenced by personal
perceptions, emotions, or implicit biases of the manager.
• Raters may unintentionally fall into common biases, such as
the halo effect (overrating an individual based on one
outstanding trait) or recency bias (focusing only on recent
performance).
Objectivity of Scores

• Solutions:
• Use Clear, Measurable Metrics: Establish specific, measurable,
and objective criteria for evaluation. Quantitative data (e.g., sales
achieved, projects completed) should complement qualitative
assessments (e.g., teamwork, leadership).
• Calibrated Rating Systems: Train managers on using
standardized rating scales and ensure consistency by conducting
calibration meetings to compare and align scores across teams.
• Multi-Rater Feedback Systems (360-Degree Feedback):
Gathering input from multiple sources—such as peers,
subordinates, and customers—provides a more balanced and
objective view.
Objectivity of Scores
Favoritism

• Why It Happens:
• Favoritism occurs when managers exhibit biased preferences
toward certain employees, often due to personal rapport,
similarity, or other non-performance-related reasons.
• This can lead to unfair evaluations, rewards, and promotional
opportunities, eroding trust and morale among other team
members.
Favoritism

• Solutions:Transparent Criteria: Establish and

communicate clear criteria for performance evaluations,
promotions, and rewards. Make the process as transparent
as possible to minimize perceptions of favoritism.
• Anonymous Feedback Mechanisms: Implement
anonymous channels for employees to provide feedback
about the fairness of the appraisal process. Use these
insights to identify and address potential favoritism.
• HR Oversight: HR should play an active role in ensuring
that appraisals are conducted fairly, and they should
intervene when patterns of favoritism arise.
Favoritism
Inconsistency Between Different Managers

• Why It Happens:
• Different managers may have varying expectations,
evaluation standards, and biases when assessing employee
performance.
• This can lead to unfair treatment of employees who work
under different managers within the same organization,
creating dissatisfaction and a perception of inequity.
Inconsistency Between Different Managers

• Solutions:
• Manager Training: Train managers on standardized
appraisal methods and how to apply them consistently.
Emphasize the importance of fairness and objectivity.
• Standardized Evaluation Tools: Use consistent tools,
rating scales, and templates across departments to ensure
uniformity in evaluations.
• Cross-Department Calibration Sessions: Conduct
regular calibration sessions where managers compare and
align their performance ratings and evaluations with their
peers.
Inconsistency Between Different Departments

• Why It Happens:
• Variability in departmental goals, roles, and cultures can lead
to inconsistencies in how performance is measured,
evaluated, and rewarded.
• This may lead to feelings of unfair treatment if employees
perceive that their colleagues in other departments are being
evaluated differently or more leniently.
Inconsistency Between Different Departments

• Solutions:
• Organizational Alignment of Goals: Align departmental
objectives with the organization’s overall goals, ensuring that
performance criteria reflect the company's core priorities.
• Centralized Policies and Frameworks: Develop a unified
performance management framework that can be tailored for
different functions but maintains consistent standards and
expectations.
• HR Monitoring: Ensure HR is actively monitoring for
inconsistencies between departments and intervening when
necessary to create parity.
Clarifying Performance Expectations

• Why It Matters:
• Ambiguous or unclear expectations can lead to confusion,
stress, and unmet performance standards. Employees may
not fully understand what is expected of them or how their
performance will be measured.
Clarifying Performance Expectations

• Solutions:
• SMART Goals: Set Specific, Measurable, Achievable,
Relevant, and Time-bound goals that clearly communicate
what is expected from employees.
• Regular Communication: Maintain open lines of
communication between managers and employees to clarify
expectations, provide updates, and answer questions as they
arise.
• Job Descriptions and KPIs: Ensure job descriptions and
Key Performance Indicators (KPIs) are up-to-date and
reflect current expectations and responsibilities.
Clarifying Performance Expectations
Using Agile KPIs for Performance Measurement

•Employee Engagement Score

•Measures the level of employee satisfaction and involvement.
•Tools: Employee surveys, pulse checks, or Net Promoter Score
(eNPS).
•Frequency: Measured regularly (e.g., quarterly).
Using Agile KPIs for Performance Measurement :
Employee Engagement Score
• Employee Surveys
• Employee surveys are structured tools used to collect detailed
feedback on various workplace topics.
• Types of Employee Surveys:
1.Engagement Surveys: Measure overall employee
engagement and satisfaction.
2.Onboarding Surveys: Assess new hires' experiences during
the onboarding process.
3.Exit Surveys: Gather insights from departing employees to
understand reasons for turnover.
4.Pulse Surveys: Brief and frequent surveys (discussed below).
Using Agile KPIs for Performance Measurement :
Employee Engagement Score
• Pulse Checks
• Pulse checks are short, frequent surveys designed to quickly gauge
employee sentiment and engagement.
• Characteristics:
• Typically 5–10 questions.
• Conducted weekly, bi-weekly, or monthly.
• Focused on immediate issues or ongoing initiatives.
• Example Questions:
• "Do you feel supported in your current role?"
• "How would you rate your workload this week?"
• "Do you feel recognized for your contributions?"
Using Agile KPIs for Performance Measurement :
Employee Engagement Score
• Employee Net Promoter Score (eNPS)
• eNPS is a simple metric derived from the question:
"On a scale of 0–10, how likely are you to recommend this
company as a great place to work?"
• Scoring:
• Promoters (9–10): Highly engaged and loyal employees.
• Passives (7–8): Satisfied but not fully engaged.
• Detractors (0–6): Disengaged or unhappy employees.
• Calculation:
• eNPS=%Promoters−%Detractors
Using Agile KPIs for Performance Measurement :
Employee Engagement Score
Using Agile KPIs for Performance Measurement

• Time-to-Competency
• Tracks how quickly employees reach a level of
productivity or expertise.
• Calculation: Time from onboarding start to achieving
key milestones.
• Cycle Time for HR Processes
• Tracks the time taken to complete specific HR tasks like
recruitment or onboarding.
• Helps identify bottlenecks and streamline workflows.
Using Agile KPIs for Performance Measurement

•Turnover Rate
•Monitors voluntary and involuntary employee turnover rates to assess
retention.
•Agile Perspective: Use data to iterate on strategies for improving
retention.
•Continuous Feedback Metrics
•Measures how often feedback is given and its impact on performance
improvements.
•Encourages a culture of iterative development for employees.
Employee Goal-Setting with Agile Objectives
and Key Results (OKRs)

OKRs (Objectives and Key Results) are a

goal-setting framework that aligns
individual, team, and organizational goals in
an Agile environment. They emphasize
measurable outcomes and iterative
progress.
Key Components of OKRs:

• Objectives:
• Broad, qualitative goals that provide direction and
inspiration.
• Example: "Improve employee satisfaction across the
organization."
• Key Results:
• Specific, quantitative metrics that define success for each
objective.
• Example: "Increase employee engagement scores by 15%
within two quarters."
Steps to Implement OKRs for Employee Goal-Setting:

1.Align Goals with Organizational Priorities

1. Ensure employee objectives support broader team and company goals.
2.Set Measurable and Achievable Key Results
1. Use SMART criteria (Specific, Measurable, Achievable, Relevant, Time-
bound).
3.Encourage Collaboration
1. Foster cross-functional teams to work on shared objectives.
4.Break Down Goals into Iterative Cycles
1. Set OKRs quarterly, allowing flexibility to adapt to changes.
5.Use Agile Tools to Track Progress
1. Platforms like Jira, Asana, or dedicated OKR tools can monitor updates in
real-time.
Example OKRs in an Agile HR Context:

• Objective: Enhance the recruitment process to attract

top talent.
• KR1: Reduce time-to-hire from 45 days to 30 days in
Q1.
• KR2: Achieve an 85% satisfaction rate from hiring
managers in Q1.
• KR3: Increase the applicant-to-hire ratio by 20% by Q2.
Example OKRs in an Agile HR Context:

• Objective: Improve employee engagement and

retention.
• KR1: Conduct bi-weekly pulse surveys with a 70%
participation rate.
• KR2: Implement three new employee recognition
programs by the end of the quarter.
• KR3: Decrease voluntary turnover rate from 15% to
10% over six months.
Overview Of Popular Agile Tools

• Trello
• A simple, visual project management tool based on
Kanban boards.
• Key Features:
• Drag-and-drop interface for task management.
• Boards, lists, and cards for organizing tasks.
• Integrations with tools like Slack, Google Drive, and Microsoft
Teams.
• Best For:
• Visualizing workflows for tasks like onboarding or recruitment.
• Tracking progress on employee training programs.
Trello
Overview Of Popular Agile Tools

• Jira
• A robust tool designed for Agile teams, originally for software
development but widely adopted for other uses, including HR.
• Key Features:
• Scrum and Kanban boards for iterative task management.
• Customizable workflows to match HR processes.
• Advanced reporting and analytics for tracking progress.
• Best For:
• Managing complex HR projects like company-wide performance
evaluations.
• Detailed tracking of recruitment pipelines or compliance tasks.
JIRA
Asana

• A versatile work management tool with features for task

tracking and collaboration.
• Key Features:
• Timeline and calendar views for scheduling.
• Customizable templates for recurring HR tasks.
• Task dependencies to streamline workflows.
• Best For:
• Coordinating team goals and individual employee tasks.
• Scheduling recruitment, training, and performance reviews.
Asana
Choosing the Right Tool for HR Processes

•Workflow Complexity
•Simple Workflows: Use Trello or Asana for straightforward tasks like onboarding or
recruitment.
•Complex Processes: Opt for Jira or Monday.com for highly detailed HR functions like
compliance audits or large-scale projects.
•Team Size
•Small Teams: Trello and Slack are cost-effective and easy to implement.
•Large Organizations: BambooHR, Jira, or Monday.com provide scalability and advanced
features.
•Integration Needs
•Check for compatibility with existing systems like payroll, communication platforms, or
document storage (e.g., integration with Slack, Google Drive, or Office 365).
•Customization Requirements
•If HR processes need tailored workflows, tools like ClickUp or Monday.com provide extensive
customization.
Choosing the Right Tool for HR Processes

•Budget Constraints
•Trello (free tier available) and Slack are affordable options
for smaller teams.
•Tools like Jira and BambooHR may require larger budgets but
offer robust features.
•Focus Areas
•Recruitment: Asana or Trello for tracking candidates.
•Onboarding: Monday.com for structured task management.
•Performance Management: BambooHR or ClickUp for
continuous feedback and performance tracking.
Summary
Job Analysis and the
Talent Management
Process
 The Talent Management
Process

o Decide what positions to fill

o Build a pool of job candidates
o Obtain application forms
o Use selection tools
o Decide to whom to make an offer
o Orient, train, and develop employees
o Appraise employees
o Compensate employees to maintain their
motivation

Copyright © 2017 Pearson Education, Ltd. 4-108

 The Basics of Job Analysis

• Work activities
• Human behaviors
• Machines, tools, equipment,
and work aids
• Performance standards
• Job context
• Human requirements

Copyright © 2017 Pearson Education, Ltd. 4-109

 What Is Job Analysis?

• Job Analysis – is the procedure through

which you determine the duties and skill
requirements of a job and the kind of
person who should be hired for it.

Copyright © 2017 Pearson Education, Ltd. 4-110

 Uses of Job Analysis
Information
• Recruitment and
selection

• EEO compliance

• Performance
appraisal

• Compensation

• Training
Copyright © 2017 Pearson Education, Ltd. 4-111
 Conducting a Job
Analysis
1. How will information be used?
2. Background information
3. Representative positions
4. Collect and analyze data
5. Verify
6. Job description and specification

Copyright © 2017 Pearson Education, Ltd. 4-112

 Other Processes involved
in Job Analysis

• Business Process Reengineering

• Job Redesign
• Job Enlargement
• Job Rotation
• Job Enrichment

Copyright © 2017 Pearson Education, Ltd. 4-113

 Methods for Collecting Job
Analysis Information

1. Interviews
2. Quantitative
“position analysis”
questionnaire
3. Additional Things to
keep in mind

Copyright © 2017 Pearson Education, Ltd.

4-114
 The Interview

1. Typical Questions
2. Structure Interviews
3. Pros and Cons
4. Interviewing Guidelines

Copyright © 2017 Pearson Education, Ltd. 4-115

Questionnaires

Copyright © 2017 Pearson Education, Ltd. 4-116

Observations

Copyright © 2017 Pearson Education, Ltd. 4-117

Participant Diary /Logs

Copyright © 2017 Pearson Education, Ltd. 4-118

 Quantitative Job Analysis
Techniques

1. Position Analysis Questionnaire

2. Department of Labor (DOL) Procedure

Copyright © 2017 Pearson Education, Ltd. 4-119

Electronic Job Analysis
Methods

Copyright © 2017 Pearson Education, Ltd.

4-120
Writing Job Descriptions

Copyright © 2017 Pearson Education, Ltd. 4-121

 Writing Job Descriptions

• Job identification
• Job summary
• Responsibilities and duties
• Authority of incumbent
• Standards of performance
• Working conditions
• Job specifications

Copyright © 2017 Pearson Education, Ltd. 4-122

Job Identification

Copyright © 2017 Pearson Education, Ltd. 4-123

Job Summary

Copyright © 2017 Pearson Education, Ltd. 4-124

Relationships

Copyright © 2017 Pearson Education, Ltd. 4-125

Responsibilities and Duties

Copyright © 2017 Pearson Education, Ltd. 4-126

 Steps in using O*NET to
write job descriptions
Step 1. Review Your Plan
Step 2. Develop an Organization Chart
Step 3. Use a Job Analysis Questionnaire
Step 4. Obtain Job Duties from O*NET
Step 5. List the Job’s Human Requirements
from O*NET
Step 6. Finalize the Job Description.

Copyright © 2017 Pearson Education, Ltd. 4-127

 Writing job specifications

• Trained vs. untrained

• Judgment
• Statistical analysis
• Job Requirement
Matrix

Copyright © 2017 Pearson Education, Ltd. 4-128

 Specifications for Trained
versus Untrained Personnel

Copyright © 2017 Pearson Education, Ltd. 4-129

 Specifications Based on
Statistical Analysis

• Predictor
• Criterion
• Five Step Procedure

Copyright © 2017 Pearson Education, Ltd.

4-130
 How to Write
Competencies Statements

1. Name and brief description

2. Description of the
observable behaviors
3. Proficiency Level

Copyright © 2017 Pearson Education, Ltd. 4-131

Benchmarking

Copyright © 2017 Pearson Education, Ltd. 3-132

Benchmarking – SHRM services

Copyright © 2017 Pearson Education, Ltd. 3-133

What Are HR Audits?

Copyright © 2017 Pearson Education, Ltd. 3-134

Creating Agile Onboarding Journeys for Rapid Integration

• Iterative Design: Break onboarding into smaller,

manageable phases, such as pre-boarding, first-week
tasks, and 30/60/90-day milestones.
• Continuous Updates: Regularly adapt content and
processes to align with organizational changes or
feedback.
• Focus on Outcomes: Prioritize helping new hires reach
productivity quickly by concentrating on high-impact
learning and relationship-building activities.
Customizing Onboarding Experiences to Match Team
Dynamics
•Collaborative Input: Engage team members in co-designing
onboarding activities to ensure alignment with team needs.
•Role-Specific Training: Customize learning materials, tools, and
support systems to the specific responsibilities of the new hire.
•Team-Based Integration: Use Agile practices like sprint
retrospectives or team stand-ups to introduce new hires to team
dynamics and rituals.

•Example: A new hire joining a software development team could

be introduced to the team’s Scrum or Kanban practices and
included in their stand-ups from Day 1.
Establishing Feedback Mechanisms to Improve
Onboarding Processes
•Real-Time Feedback: Use tools like surveys or pulse
checks during critical onboarding stages (e.g., after the
first week or month).
•Retrospectives: Conduct onboarding retrospectives
where new hires share insights on what worked well and
areas for improvement.
•Feedback Loops: Create structured feedback loops
involving HR, managers, and peers to iteratively refine
the onboarding journey.
Establishing Strategic
Pay Plans
 Basic Factors in
Determining Pay Rates

Employee Compensation
1. Direct
2. Indirect

Copyright © 2017 Pearson Education, Ltd. 139

Aligning Total Rewards with Strategy

• Aligned Reward Strategy - is creating a

compensation package that produces the
employee behaviors the firm needs to
achieve its competitive strategy.

Copyright © 2017 Pearson Education, Ltd. 1-140

 Equity and Its Impact on Pay Rates

• Equity Theory of Motivation - is once a

person perceives an inequity a tension or
drive will develop that motivates him or her
to reduce the tension and perceived
inequity.

Copyright © 2017 Pearson Education, Ltd. 1-141

Equity and its Impact on Pay Rates

Type of Equity
1. External
2. Internal
3. Individual
4. Procedural

Copyright © 2017 Pearson Education, Ltd. 11-142

Independent Contractors

Copyright © 2017 Pearson Education, Ltd. 4-143

 Pay Polices

• Seniority-based
• Performance
• Other pay policies
• Geography

Copyright © 2017 Pearson Education, Ltd. 11-144

 Improving Performance:
HR Practices Around The Globe

Compensating Expatriate
Employees

Let’s talk about it…

Copyright © 2017 Pearson Education, Ltd. 1-145

 II.
Define and give an example
of how to conduct a job
evaluation.

Copyright © 2017 Pearson Education, Ltd. 11-146

 Job Evaluation Methods

• Market-Base
• Job Evaluation

Copyright © 2017 Pearson Education, Ltd. 11-147

 Compensable Factors

• Compensable Factors- a fundamental,

compensable element of a job, such as
skill, effort, responsibility, and working
conditions.

Copyright © 2017 Pearson Education, Ltd. 1-148

 Preparing for the Job
Evaluation

1. Identify the Need

2. Get Employees Cooperation
3. Choose Evaluation Committee
4. Perform the Evaluation

Copyright © 2017 Pearson Education, Ltd. 11-149

 Job Evaluation Methods:
Ranking
1. Obtain job information
2. Select and group jobs
3. Select compensable factors
4. Rank jobs
5. Combine ratings
6. Compare current pay with what others are
paying based on salary surveys
7. Assign a new pay scale

Copyright © 2017 Pearson Education, Ltd. 11-150

Job Evaluation Methods: Ranking

Copyright © 2017 Pearson Education, Ltd. 11-151

Job Evaluation Methods:
Job Classification

Copyright © 2017 Pearson Education, Ltd. 11-152

 Job Evaluation Methods:
Point Method

• Point Method - a job evaluation method

in which a number of compensable
factors are identified and then the
degree to which each of these factors
is present on the job is determined .

Copyright © 2017 Pearson Education, Ltd. 1-153

 Computerized
Job Evaluations

Copyright © 2017 Pearson Education, Ltd. 11-154

 III.
Explain in detail how to
establish a market-
competitive pay plan.

Copyright © 2017 Pearson Education, Ltd. 11-155

 How to Create a Market-
Competitive Pay Plan

1. Choose Benchmark Jobs

2. Select Compensable Factors
3. Assign Weights to Compensable
Factors
4. Convert Percentages to Points for
Each Factor

Copyright © 2017 Pearson Education, Ltd. 11-156

Creating a Market-Competitive
Pay Plan continued

5. Define Each Factor’s Degrees

6. Determine For Each Factor Its
Factor Degrees’ Points
7. Review Job Descriptions and Job
Specifications
8. Evaluate the Jobs

Copyright © 2017 Pearson Education, Ltd. 11-157

 Creating a Market-Competitive
Pay Plan continued
9. Draw the Current (Internal) Wage Curve
10. Conduct a Market Analysis: Salary
Survey
11. Draw the Market (External) Wage Curve
12. Compare and Adjust Current and Market
Rates for Jobs

Copyright © 2017 Pearson Education, Ltd. 11-158

Creating a Market-Competitive
Pay Plan continued

13. Develop Pay Grades

14. Establish Rate Ranges
15. Address Remaining Job
16. Correct Out-of-Line Rates
o Underpaid / Red circle

Copyright © 2017 Pearson Education, Ltd. 11-159

Improving Performance: HR Tools for Line
Managers and Small Businesses

Developing a Workable
Pay Plan

Let’s talk about it…

Copyright © 2017 Pearson Education, Ltd. 1-160

 What Determines Executive Pay

1. Job Complexity
2. The Employer’s Ability to Pay
3. The Executive’s Human Capital

Copyright © 2017 Pearson Education, Ltd. 11-161

 Compensating Executives

1. Base Pay
2. Short-term Incentives
3. Long-term incentives
4. Executive Benefits and Perks

Copyright © 2017 Pearson Education, Ltd. 11-162

Compensating Professional
Employees

Copyright © 2017 Pearson Education, Ltd. 11-163

Improving Performance Through HRIS:
Payroll Administration

Developing a Workable
Pay Plan

Let’s take a look…

Copyright © 2017 Pearson Education, Ltd. 1-164

 V.
Explain the difference
between
competency-based and
traditional pay.

Copyright © 2017 Pearson Education, Ltd. 11-165

 Competency-Base Pay

1. Defines Skills
2. Choose Method
3. Training system
4. Formal Testing
5. Design Work

Copyright © 2017 Pearson Education, Ltd. 11-166

 Improving Performance:
HR Practices Around the Globe

JLG’s Skilled-Based Pay

Program

Let’s talk about it…

Copyright © 2017 Pearson Education, Ltd. 1-167

Broadbanding

Copyright © 2017 Pearson Education, Ltd. 11-168

Comparable Worth

Copyright © 2017 Pearson Education, Ltd. 11-169

EMPLOYEE GRIEVANCES
THROUGH AGILE
PRACTICES
Employee Grievance

• An employee grievance refers to

a formal complaint or concern
raised by an employee regarding
any aspect of their employment
or the work environment. It is a
mechanism for employees to
express dissatisfaction, seek
resolution, and address issues
they believe are impacting their
rights, well-being, or terms of
employment.

171
Types of Employee Grievances:

• Harassment and Discrimination: Grievances related to

experiences of harassment, bullying, or discrimination based on
factors such as race, gender, religion, age, or disability.
• Working Conditions: Concerns about unsafe working conditions,
inadequate facilities, or issues affecting health and safety.
• Compensation and Benefits: Grievances about salary, wages,
overtime pay, bonuses, or dissatisfaction with benefits
packages.

172
Types of Employee Grievances:

• Workload and Job Design: Complaints about excessive

workload, unreasonable expectations, or poorly designed job
roles.
• Management and Supervision: Grievances related to
managerial practices, lack of communication, favoritism, or
perceived unfair treatment.
• Career Development: Dissatisfaction with opportunities for
career growth, promotion, or training.
• Team and Interpersonal Conflicts: Complaints about conflicts
with colleagues or difficulties within a team.
173
Types of Employee Grievances:

• Policy and Procedure Issues: Grievances concerning

organizational policies, procedures, or practices.
• Performance Management: Disagreements or dissatisfaction
with performance evaluations, feedback, or disciplinary actions.
• Retaliation and Whistleblowing: Grievances stemming from
retaliation after raising concerns or whistleblowing activities.

174
Designing Employee Grievance Procedures

• Designing effective employee grievance procedures is crucial for

fostering a fair and transparent work environment. Grievance
procedures provide employees with a formal mechanism to
address and resolve concerns or complaints related to their
employment.
• Designing an effective employee grievance procedure requires
careful consideration of the organization's values, employee needs,
and legal requirements. A well-designed grievance procedure can
help address issues proactively, maintain a positive work culture,
and build trust between employees and management.

175
Designing Employee Grievance Procedures

• Policy Development:
• Clearly define the purpose of the grievance procedure, emphasizing its
commitment to addressing employee concerns promptly and
impartially.
• Specify the types of issues that can be raised through the grievance
procedure, such as harassment, discrimination, working conditions, or
disputes with supervisors.
• Ensure the grievance procedure aligns with applicable employment
laws and regulations.

176
Designing Employee Grievance Procedures

• Accessibility and Communication:

• Communicate the grievance procedure clearly to all employees through
the employee handbook, intranet, or other accessible platforms.
• Ensure that the procedure is available in multiple languages if needed
to accommodate a diverse workforce.
• Designate a point of contact (e.g., HR manager) who can provide
guidance and answer employees' questions about the grievance
process.

177
Designing Employee Grievance Procedures

• Informal Resolution:
• Encourage employees to resolve grievances informally whenever
possible, such as discussing concerns with their immediate supervisor or
manager.
• Offer informal mediation or facilitation services to help parties resolve
issues amicably.
• Formal Grievance Process:
• Outline the steps of the formal grievance process, including how to
submit a written grievance and the timeframe for doing so.
• Specify who will handle the grievance (e.g., HR representative or
designated grievance officer) and how they will remain impartial
throughout the process.
178
Designing Employee Grievance Procedures

• Investigation Process:
• Define the investigation process, which may include gathering relevant
evidence, interviewing involved parties and witnesses, and reviewing any
related documents.
• Guarantee confidentiality to the extent possible during the investigation
to protect the privacy of all parties involved.
• Timely Response:
• Establish specific timelines for each step of the grievance
procedure to ensure that grievances are addressed promptly.
• Communicate the expected response time to the employee who
raised the grievance.
179
Designing Employee Grievance Procedures

• Fair and Impartial Review:

• Ensure that the grievance is reviewed by an unbiased party or a review
panel.
• If applicable, involve a neutral third-party mediator to facilitate
resolution in complex cases.
• Decision and Resolution:
• Provide a written decision to the employee outlining the findings of the
investigation and any actions taken to resolve the grievance.
• Offer options for resolution, such as corrective actions, training, or
policy changes, depending on the nature of the grievance.

180
Designing Employee Grievance Procedures

• Appeal Process:
• Include an appeals process for employees who are dissatisfied with the
outcome of the initial grievance resolution.
• Specify the grounds for an appeal and the steps for filing an appeal.
• Documentation and Record-Keeping:
• Maintain detailed records of all grievance-related communication,
investigations, and outcomes for compliance and future reference.

181
Designing Employee Grievance Procedures

• Continuous Improvement:
• Regularly review and assess the effectiveness of the grievance
procedure.
• Solicit feedback from employees on their experience with the grievance
process and make necessary improvements based on the feedback
received.
• Training and Awareness:
• Conduct training for employees and managers on the grievance
procedure and its importance.
• Ensure that employees are aware of their rights and responsibilities in
utilizing the grievance procedure.
182
Implementing Employee Grievance Procedures

• Communication and Training:

• Communicate the new grievance procedures to all employees through
multiple channels, such as emails, staff meetings, and the company
intranet.
• Conduct training sessions to educate employees, supervisors, and HR
staff about the grievance process, its purpose, and how to initiate or
respond to grievances.
• Ensure employees understand their rights, the importance of raising
concerns, and the protection against retaliation for filing a grievance.

183
Implementing Employee Grievance Procedures

• Designate Grievance Officers:

• Assign specific individuals within the HR department or management
team as grievance officers or points of contact to handle employee
grievances.
• Ensure these designated individuals are well-trained in conflict
resolution, investigation techniques, and maintaining confidentiality.
• Develop Grievance Forms and Documentation:
• Create standardized grievance forms that employees can use to
document their concerns formally.
• Design the forms to capture essential details, such as the nature of the
grievance, relevant dates, and parties involved.
• Establish a system for securely storing grievance-related documentation.184
Implementing Employee Grievance Procedures

• Promote Informal Resolution:

• Encourage supervisors to address employee concerns at an informal
level whenever possible to prevent issues from escalating.
• Provide coaching and guidance to supervisors on effective
communication and conflict resolution skills.
• Establish a Grievance Review Committee:
• If your organization is large or complex, consider forming a grievance
review committee composed of representatives from different
departments or levels.
• The committee can help ensure a fair and diverse perspective in the
grievance resolution process.
185
Implementing Employee Grievance Procedures

• Maintain Confidentiality:
• Emphasize the importance of confidentiality during the grievance
process to protect the privacy of all parties involved.
• Ensure that information related to grievances is shared only with those
directly involved in the resolution process.
• Implement a Timely Response System:
• Set clear timelines for each step of the grievance procedure to ensure
prompt handling of grievances.
• Monitor the progress of each grievance to ensure it is being addressed
within the established timeframes.

186
Implementing Employee Grievance Procedures

• Track and Analyze Grievances:

• Keep records of all grievances received and the outcomes of their
resolution.
• Analyze the data periodically to identify any trends, recurring issues, or
potential areas for improvement.
• Feedback and Improvement:
• Encourage employees to provide feedback on their experience with the
grievance process.
• Use feedback to make necessary improvements and address any gaps
in the grievance procedures.

187
Implementing Employee Grievance Procedures

• Promote a Positive Workplace Culture:

• Foster a workplace culture that encourages open communication,
respect, and a willingness to address concerns promptly.
• Create an environment where employees feel comfortable raising
grievances without fear of reprisals.
• Compliance with Legal Requirements:
• Ensure that the grievance procedures comply with all applicable
employment laws and regulations.
• Periodically review and update the procedures to reflect any changes in
laws or regulations.

188
Implementing Employee Grievance Procedures

• Continuous Training and Awareness:

• Provide ongoing training for HR staff, managers, and employees on the
grievance procedures and their role in the process.
• Conduct periodic refresher sessions to reinforce the importance of the
grievance procedures.

189
Underperformance Issues

• Underperformance issues refer to

situations where an employee's job
performance falls below the expected or
desired standards. These issues can
manifest in various ways, such as
consistently missing deadlines, producing
low-quality work, failing to meet goals, or
displaying a lack of engagement in their
responsibilities. Addressing
underperformance is crucial to maintain a
productive and motivated workforce and
ensure the organization's overall success.

190
Common Causes of Underperformance:

• Skill Gaps: The employee may lack the necessary skills,

knowledge, or training to perform their job effectively.
• Unclear Expectations: If performance expectations are not
clearly communicated, employees may not understand what is
required of them.
• Lack of Motivation: Employees who are demotivated or
disengaged are more likely to underperform.

191
Common Causes of Underperformance:

• Personal Issues: Personal problems or challenges outside of

work can impact an employee's performance.
• Health or Wellbeing Concerns: Health issues or stress can
affect an employee's ability to perform at their best.
• Workload and Time Management: Excessive workload or poor
time management can lead to underperformance.
• Communication Barriers: Ineffective communication within the
team or organization can hinder performance.

192
Addressing Underperformance Issues

• Identify the Underperformance:

• Clearly identify the specific areas in which the employee is
underperforming. Use objective data, performance metrics, and feedback
from colleagues or supervisors to assess the situation accurately.
• Private Conversation:
• Schedule a private meeting with the employee to discuss the
underperformance. Choose a comfortable and confidential setting to
avoid embarrassment or potential distractions.
• Use Specific Examples:
• Provide specific examples of instances where the employee's
performance fell short of expectations. Use facts and data to support
your feedback. 193
Addressing Underperformance Issues

• Active Listening:
• Allow the employee to express their perspective on the situation. Practice
active listening and show empathy to understand any challenges or
barriers they may be facing.
• Explore Root Causes:
• Investigate the potential reasons for the underperformance. Determine
whether the issue is due to skill gaps, lack of resources, unclear
expectations, or personal factors.
• Set Clear Expectations:
• Clearly communicate the performance expectations and standards that
the employee should meet. Be specific about the desired outcomes and
the timeline for improvement. 194
Addressing Underperformance Issues

• Offer Support and Resources:

• Identify the support, training, or resources the employee needs to improve
their performance. Provide coaching, mentoring, or additional training as
necessary.
• Create a Performance Improvement Plan (PIP):
• Develop a Performance Improvement Plan with the employee. The plan
should outline specific actions, milestones, and timelines for improvement.
Ensure the plan is realistic and achievable.
• Regular Check-ins:
• Schedule regular check-ins to monitor the employee's progress. Use
these meetings to offer feedback, assess progress, and provide any
additional support or adjustments to the PIP if needed. 195
Addressing Underperformance Issues

• Document Everything:
• Document all discussions, agreements, and actions taken related to
addressing the underperformance. Keep a record of performance
improvement plans, feedback, and any support provided.
• Reinforce Positive Changes:
• Recognize and acknowledge any improvements made by the employee.
Positive reinforcement can motivate them to continue making progress.
• Consequences for Lack of Improvement:
• Clearly communicate the potential consequences if the employee does
not show improvement within the specified timeframe. Be fair and
consistent with any consequences implemented.
196
Addressing Underperformance Issues

• Explore Alternative Solutions:

• If the underperformance persists despite efforts to address it, consider
alternative solutions such as role reassignment, additional training, or
performance-related discussions with HR.
• Involve HR or Management if Necessary:
• If the underperformance issue is complex or requires additional
intervention, involve HR or higher management to provide guidance and
support.
• Recognize When Termination is the Best Option:
• If all efforts to address underperformance are unsuccessful, termination
may become necessary. Ensure that the decision is made fairly and in
compliance with employment laws. 197
Importance of addressing Underperformance

• Improving Employee Performance: Addressing underperformance

helps employees identify areas where they need to improve and
provides them with the necessary support and resources to enhance
their skills and capabilities.
• Maintaining Productivity and Quality: Underperforming employees can
negatively impact team productivity and the overall quality of work.
Addressing their underperformance ensures that work standards are
met and maintained.
• Preventing Escalation: Ignoring underperformance can lead to further
decline in performance and potentially more serious issues.
Addressing it early helps prevent further deterioration and potential
negative consequences. 198
Importance of addressing Underperformance

• Boosting Employee Morale: When underperforming employees

receive feedback and support to improve, it can boost their
confidence and motivation, leading to increased job satisfaction.
• Protecting Team Dynamics: Underperformance can create
resentment and frustration among other team members who may
have to pick up the slack. Addressing underperformance
maintains a positive team environment.
• Ensuring Fairness: Addressing underperformance in a consistent
and fair manner demonstrates to all employees that performance
expectations are applied equally across the organization.
199
Importance of addressing Underperformance

• Retaining Talent: Proactively addressing underperformance can

help retain valuable employees who may have the potential to
improve and contribute significantly to the organization.
• Supporting Career Advancement: Addressing
underperformance enables employees to work towards meeting
performance expectations, which can lead to opportunities for
career advancement within the organization.
• Meeting Organizational Goals: Addressing underperformance
ensures that the organization's goals and objectives are being
pursued with the full commitment of its workforce.
200
Importance of addressing Underperformance

• Building a Positive Culture: A workplace that actively addresses

underperformance fosters a culture of accountability, continuous
improvement, and excellence.
• Preventing Employee Disengagement: Addressing underperformance
demonstrates to employees that their contributions are valued, which
can prevent feelings of disengagement or alienation.
• Complying with Performance Standards: In certain industries,
compliance with specific performance standards is critical for safety,
regulatory requirements, or customer satisfaction. Addressing
underperformance is essential for meeting these standards.
201
Importance of addressing Underperformance

• Maintaining Competitiveness: Organizations that address

underperformance and promote a high-performing culture are
better positioned to compete effectively in their respective
markets.
• Fostering a Learning Organization: Addressing underperformance
encourages a culture of learning and continuous improvement,
where employees and the organization grow together.
• Promoting Growth and Development: Addressing
underperformance allows employees to identify areas for growth
and development. Providing opportunities for improvement can
lead to a more skilled and competent workforce.
202
 Motivation Theories
• 4.1 Maslow's Hierarchy of Needs

• Maslow's theory posits that human needs are arranged in a hierarchy, starting from basic physiological
needs to self- actualization.

• Application in the Workplace:

• Understanding that employees are motivated by different needs at different times can help leaders create an
environment that meets those needs (e.g., providing safety, recognition, and opportunities for growth).

• 4.2 Herzberg's Two-Factor Theory

• Herzberg identified two categories of factors affecting job satisfaction: hygiene factors (e.g., salary, work
conditions) and motivators (e.g., achievement, recognition).

• Application in the Workplace:

• Leaders should ensure hygiene factors are adequately addressed to prevent dissatisfaction, while also
focusing on motivators to enhance employee engagement and performance.
Misconduct

• Misconduct issues in the workplace refer to violations of

company policies, codes of conduct, or ethical standards by
employees. These violations can range from minor infractions to
serious offenses and can negatively impact the work
environment, employee morale, and the organization's
reputation. Addressing misconduct promptly and appropriately
is essential to maintain a positive and compliant workplace.

206
Common Types of Misconduct

• Harassment and Discrimination: Inappropriate behavior based

on factors such as gender, race, religion, or disability that create
a hostile work environment.
• Insubordination: Disrespectful or disobedient behavior towards
supervisors or refusal to follow instructions.
• Time Theft: Falsifying time records, clocking in for absent
colleagues, or engaging in activities unrelated to work during
working hours.

207
Common Types of Misconduct

• Theft and Fraud: Stealing company property or engaging in fraudulent

activities, such as misappropriation of funds.
• Bullying: Repeated, harmful actions or behavior directed towards an
individual or group, causing distress or humiliation.
• Conflict of Interest: Engaging in actions that compromise impartiality,
objectivity, or loyalty to the organization.
• Safety Violations: Failure to follow safety protocols, leading to potential
hazards for oneself or others.
• Inappropriate Internet Use: Using company resources for personal reasons
or accessing inappropriate content online.
• Violence or Threats: Physical or verbal threats or acts of violence towards
colleagues or the organization.
208
Causes of Misconducts

• Lack of Awareness or Training: Employees may engage in misconduct

due to a lack of awareness of company policies, codes of conduct, or
ethical standards. Insufficient training on appropriate behavior and
expectations can contribute to this issue.
• Poor Leadership and Role Modeling: When leaders or supervisors
exhibit unethical or inappropriate behavior, it can set a negative tone
for the entire organization. Employees may follow suit if they perceive
that such behavior goes unpunished or is even rewarded.
• Lack of Accountability: A culture of weak or inconsistent accountability
for misconduct can lead to an environment where individuals feel they
can get away with inappropriate actions without facing consequences.
209
Causes of Misconducts

• Stress and Burnout: High levels of stress and burnout can lead
to decreased motivation and engagement, which may result in
employees resorting to misconduct as a way to cope with their
work-related challenges.
• Lack of Employee Satisfaction: Dissatisfied employees may
engage in misconduct as a form of retaliation or to express their
frustration with their work conditions.

210
Causes of Misconducts

• Misaligned Incentives: Incentive structures that focus solely on

individual performance or rewards for short-term gains can lead
some employees to compromise ethical standards to achieve
personal goals.
• Lack of Employee Engagement: Disengaged employees may
feel disconnected from the organization's values and goals,
leading to a reduced commitment to ethical behavior.
• Organizational Culture: A culture that prioritizes results over
ethical conduct or that tolerates misconduct can inadvertently
encourage or enable such behavior.
211
Causes of Misconducts

• Perceived Unfairness or Inequity: Employees who perceive unfair

treatment or inequitable distribution of rewards may be more
prone to engage in misconduct as a way to "even the score."
• Personal Issues or External Pressures: Employees dealing with
personal problems or external pressures may act out in ways that
violate workplace norms.
• Inadequate Reporting Mechanisms: If employees lack confidence
in reporting misconduct or fear retaliation for doing so, they may
choose to remain silent or turn a blind eye to wrongdoing.

212
Addressing Misconduct Issues

• Addressing misconduct issues in the workplace is crucial to

maintain a positive and ethical work environment. Prompt and
appropriate action is essential to prevent further harm, protect
employees' well-being, and uphold the organization's
reputation.

213
Addressing Misconduct Issues

• Investigate Thoroughly:
• Initiate a thorough and impartial investigation into the alleged
misconduct. Gather relevant evidence, interview witnesses, and
maintain confidentiality during the process.
• Review Policies and Codes of Conduct:
• Ensure that the organization's policies and codes of conduct are clear,
comprehensive, and easily accessible to all employees.
• Act Promptly:
• Address the misconduct issue as soon as it comes to light to prevent
escalation and demonstrate the organization's commitment to
addressing such matters seriously.
214
Addressing Misconduct Issues

• Maintain Confidentiality:
• Respect the privacy of all parties involved in the investigation and avoid
sharing sensitive information with individuals not directly involved in the
process.
• Offer Support:
• Provide support and resources to those affected by the misconduct, such
as counseling, Employee Assistance Programs (EAPs), or additional
training on workplace conduct.
• Conduct Disciplinary Meetings:
• If the investigation confirms the misconduct, hold disciplinary meetings
with the employees involved. Provide them with an opportunity to share
their side of the story. 215
Addressing Misconduct Issues

• Progressive Discipline:
• Consider progressive discipline, starting with verbal warnings and
escalating to more severe consequences if necessary.
• Performance Improvement Plans (PIPs):
• For certain misconduct issues, consider implementing a Performance
Improvement Plan with specific expectations and timelines for
improvement.
• Document Everything:
• Maintain detailed records of the investigation, meetings, decisions, and
any actions taken during the process.

216
Addressing Misconduct Issues

• Educate Employees:
• Conduct regular training on workplace conduct, ethics, and anti-
discrimination to prevent misconduct and promote a respectful
workplace.
• Promote Reporting Channels:
• Encourage employees to report misconduct without fear of retaliation
and provide multiple reporting options.
• Address Underlying Issues:
• Identify and address any underlying issues that may have contributed
to the misconduct, such as workplace culture or management
practices.
217
Addressing Misconduct Issues

• Consistent Application of Policies:

• Ensure that policies and disciplinary actions are applied consistently
across all employees.
• Follow Legal and Regulatory Requirements:
• Comply with all relevant employment laws and regulations when
addressing misconduct issues.
• Review and Improve:
• Continuously review and improve the organization's response to
misconduct to prevent similar incidents in the future.

218
Importance Of Addressing Misconducts

• Maintaining a Positive Work Environment: Addressing misconduct helps

create and maintain a positive and respectful work environment. When
employees feel safe, valued, and treated fairly, they are more likely to be
engaged, productive, and committed to their work.
• Protecting Employee Well-being: Misconduct, such as harassment,
discrimination, or bullying, can cause significant emotional distress and
harm to the individuals affected. By addressing misconduct promptly, the
organization protects the well-being and mental health of its employees.
• Preventing Escalation: Ignoring or tolerating misconduct can lead to a
culture where inappropriate behavior becomes normalized. Addressing
misconduct early on prevents it from escalating and becoming a more
significant issue.
219
Importance Of Addressing Misconducts

• Promoting Trust and Respect: Addressing misconduct demonstrates to employees

that the organization takes their concerns seriously and is committed to upholding
its values. This fosters trust and respect between employees and management.
• Ensuring Compliance with Laws and Regulations: Addressing misconduct is
essential for ensuring the organization complies with relevant employment laws
and regulations. Failure to address certain types of misconduct, such as
harassment or discrimination, can lead to legal liabilities and reputational damage.
• Preserving the Organization's Reputation: Addressing misconduct in a fair and
transparent manner reinforces the organization's commitment to ethical behavior.
This, in turn, helps maintain a positive reputation among employees, clients,
customers, and other stakeholders.

220
Importance Of Addressing Misconducts

• Preventing Workplace Disruption: Misconduct, especially when left

unchecked, can disrupt team dynamics, collaboration, and productivity.
Addressing misconduct helps maintain a harmonious work
environment.
• Reducing Employee Turnover: A workplace with a reputation for
tolerating misconduct is likely to experience higher employee turnover
rates. Addressing misconduct effectively can help retain valuable
talent.
• Encouraging Reporting: When employees see that misconduct is taken
seriously and that there are proper channels for reporting, they are
more likely to come forward with concerns, enabling early intervention.
221
Importance Of Addressing Misconducts

• Promoting Organizational Values: Addressing misconduct aligns with the

organization's stated values and reinforces a culture of accountability and
integrity.
• Demonstrating Leadership's Commitment: Addressing misconduct sends a
clear message that leaders are committed to a healthy, respectful, and
inclusive work environment. This commitment resonates with employees
and sets the standard for behavior throughout the organization.
• Enhancing Employee Engagement: A workplace free from misconduct
fosters higher employee morale and engagement. Employees feel more
motivated to contribute to the organization's success when they are treated
with dignity and respect.
222
 CHANGE
MANAGEMENT WITH
AGILE

223
Organizational Change

• Organizational change refers to the actions in which a company

or business alters a major component of its organization, such
as its culture, the underlying technologies or infrastructure it
uses to operate, or its internal processes.
• Organizational change management is the process of guiding
organizational change to a successful resolution, and it typically
includes three major phases: preparation, implementation, and
follow-through.

224
What Causes Organizational Change?

Many factors make organizational change necessary. Some of

the most common faced by managers include:
• New leadership at the company or within its departments
• Shifts in the organizational team structure
• The implementation of new technology
• The adoption of new business models
• To ensure a smooth transition, it’s important to have a set
organizational change management process that can be
applied across various types of change.
225
Types Of Organizational Change
• Adaptive changes are small, incremental changes organizations adopt to address needs
that evolve over time. Typically, these changes are minor modifications and adjustments
that managers fine-tune and implement to execute upon business strategies. Throughout
the process, leadership may add, subtract, or refine processes.
Example of an adaptive change is an organization that upgrades their computer operating
systems from Windows 8 to Windows 10.
• Transformational changes have a larger scale and scope than adaptive changes. They
can often involve a simultaneous shift in mission and strategy, company or team structure,
people and organizational performance, or business processes. Because of their scale,
these changes often take a substantial amount of time and energy to enact. Though it's
not always the case, transformational changes are often pursued in response to external
forces, such as the emergence of a disruptive new competitor or issues impacting a
company’s supply chain.
An example of a transformational change is the adoption of a customer relationship
management software (CRM), which all departments are expected to learn and employ.
226
Types Of Organizational Change

227
Steps In The Change Management Process

• Prepare the Organization for Change- The manager is focused on helping

employees recognize and understand the need for change.
• Craft a Vision and Plan for Change- Once the organization is ready to embrace
change, managers must develop a thorough and realistic plan for bringing it about.
The plan should include:
I. Strategic goals: What goals does this change help the organization work toward?
II. Key performance indicators: How will success be measured? What metrics need
to be moved? What’s the baseline for how things currently stand?
III. Project stakeholders and team: Who will oversee the task of implementing
change? Who needs to sign off at each critical stage? Who will be responsible for
implementation?
IV. Project scope: What discrete steps and actions will the project include? What 228
falls outside of the project scope?
Steps In The Change Management Process

• Implement the Changes- During the implementation process, change

managers must be focused on empowering their employees to take the
necessary steps to achieve the goals of the initiative and celebrate any
short-term wins.
• Embed Changes Within Company Culture and Practices- Once the change
initiative has been completed, change managers must prevent a reversion to
the prior state or status quo. This is particularly important for organizational
change related to business processes such as workflows, culture, and
strategy formulation. Without an adequate plan, employees may backslide
into the “old way” of doing things, particularly during the transitory period.
• Review Progress and Analyze Results- Conducting analysis and review, can
help business leaders understand whether a change initiative was a
success, failure, or mixed result. 229
The Three Phases of Change

• Prepare Approach
• Manage Change
• Sustain Outcomes

230
Prepare Approach

The activities in this phase help practitioners develop a customised and

comprehensive approach that positions their change for success. The three
stages in Phase 1 – Prepare Approach include:
• Define Success – Practitioners establish precisely what they are trying to
achieve, with activities such as developing a detailed change profile and
defining what success on the project looks like
• Define Impact – This stage focuses on how the change impacts individuals,
using activities that include identifying impacted groups and defining
adoption and usage
• Define Approach – Here, practitioners consider what steps they will need to
take to achieve project success, engaging in activities such as assessing
risk, identifying potential resistance, and establishing required roles
231
Manage Change

The activities in this phase involve developing plans and actions that help move
individuals The three stages in Phase 2 – Manage Change include:
• Plan and Act – Practitioners establish how to best prepare, equip and support
people who will be impacted by the change, with activities like developing an
ADKAR Blueprint and producing change management plans such as a Sponsor
Plan and Communications Plan
• Track Performance – This stage focuses on how to track and sustain progress in
the change management efforts, using activities that include establishing a
tracking calendar and identifying performance strengths and opportunities
• Adapt Actions – Based on what practitioners have learned so far, particularly in
the previous stage, they spend important time adjusting their change
management strategy with activities such as preparing adaptive actions and
continuing to track performance
232
Sustain Outcomes

The third and final phase establishes the approach for ensuring that the change is
adopted and the organisation is committed to doing what’s needed to sustain the
change. The three stages in Phase 3 – Sustain Outcomes include:
• Review Performance – Following project go-live, practitioners reflect on
performance to confirm desired results, with activities such as reviewing ADKAR
outcomes and documenting lessons learned
• Activate Sustainment – Here, practitioners focus on implementing actions to
sustain change outcomes, engaging in activities like identifying gaps and
activating relevant sustainment roles
• Transfer Ownership – In this final stage of the Prosci 3-Phase Process,
practitioners establish how to carry sustainment efforts forward, with important
activities that include transferring knowledge and assets, as well as celebrating
change management successes
233
The Three Phases of Change

234
Change Management And Change Control

• Change control: This refers to the process of evaluating a change request

within an organization and deciding if it should go ahead. An individual or
team will be tasked with identifying and keeping track of changes
throughout the project life cycle. They will assess all change requests and
choose whether or not these requests are approved or denied. In general,
the goal is to minimize change unless it is deemed necessary or beneficial.
Change control is what enables teams to avoid the disruption that can
occur due to a project change.
• Change management: This is what happens after a period of
transformation in an organization. If a change request has been approved,
this change now has to be managed. In this situation, manager will oversee
a change management team to ensure they are correctly implementing 235
changes into their daily practices and that the project is not disrupted.
Importance Change Management And Change Control

• If the change is positive, they need to take advantage of this

and reap the potential benefits of embracing a transformation.
Change control is important here as requests that will likely lead
to success must be approved.
• If the change is negative, this is where change management
comes in. Project managers need to manage change quickly
and effectively to ensure there is minimal risk and that the
project stays on course to achieve its deliverables.

236
Change Management And Change Control

237
 Change Management Strategies
• 2.4.1 Importance of Change Management:

• Effective change management can minimize disruption, enhance employee buy-in, and
ensure that strategic goals are achieved during periods of transition. In the oil and gas
industry, factors such as fluctuating oil prices, regulatory changes, and technological
advancements necessitate robust change management practices.

• 2.4.2 Change Management Models:

• Various models can guide organizations through change. Two prominent models include:

• Kotter’s 8-Step Change Model: This model emphasizes the importance of creating a
sense of urgency, forming a guiding coalition, developing a vision and strategy,
communicating the vision, empowering employees, generating short-term wins,
consolidating gains, and anchoring new approaches in the culture.

• ADKAR Model: This model focuses on five key elements: Awareness, Desire,
Knowledge, Ability, and Reinforcement. It emphasizes individual change and how
employees can be effectively guided through transitions.
 Strategies for Managing Change

• Communication: Clear and transparent communication is vital. Leaders

should articulate the reasons for change, the benefits expected, and
how it will impact employees.
• Engagement: Involve employees in the change process to
foster ownership and commitment. This can be achieved through
workshops, feedback sessions, and participatory decision-making.
• Training and Support: Provide training and resources to equip
employees with the skills necessary to adapt to new processes or
technologies. This can help mitigate resistance and increase confidence
in handling changes.
• Monitoring and Feedback: Establish mechanisms to monitor the
progress of change initiatives and solicit feedback from employees. This
enables organizations to make necessary adjustments and address
Workplace Conflict

• Workplace conflict refers to

disagreements, disputes, or friction
that arise among individuals or
groups within a work environment.
Conflict is a natural part of human
interactions, and it can occur in any
workplace, regardless of its size or
industry. Workplace conflict can
arise due to various reasons,
including differences in opinions,
work styles, personalities, priorities,
or competing interests

242
Approaches for Effective Conflict Resolution

• Collaboration:
• Collaboration involves working together to find a solution that satisfies
the needs and interests of all parties involved. It requires active
listening, brainstorming ideas, and a willingness to consider different
perspectives.
• Benefits: Collaboration builds trust, strengthens relationships, and
often leads to innovative solutions that address the root causes of the
conflict.
• Example: In a team conflict over project responsibilities, team
members collaborate to identify each person's strengths and distribute
tasks accordingly, ensuring that everyone feels valued and capable.
243
Approaches for Effective Conflict Resolution

• Compromise:
• Compromise involves finding a middle ground where both
parties make concessions to reach a mutually acceptable
solution. It requires each party to give up something to gain
something in return.
• Benefits: Compromise allows for a timely resolution of conflicts
and fosters a sense of shared responsibility.
• Example: In a conflict between two colleagues about the
allocation of office space, they agree to share the space by
rotating between different workstations every month.
244
Approaches for Effective Conflict Resolution

• Win-Win Approach:
• The win-win approach seeks solutions that benefit all parties
involved. It focuses on creating outcomes where everyone
gains something rather than one party winning at the expense
of the other.
• Benefits: The win-win approach promotes cooperation, fosters
positive relationships, and enhances long-term collaboration.
• Example: In a negotiation between two business partners over
profit-sharing, they agree to a fair distribution that allows both
parties to benefit from the company's success.
245
Approaches for Effective Conflict Resolution

• Problem-Solving:
• The problem-solving approach focuses on identifying the
underlying issues and working collaboratively to find specific and
actionable solutions.
• Benefits: Problem-solving leads to practical solutions that address
the root causes of the conflict, reducing the likelihood of recurring
disputes.
• Example: In a team conflict related to meeting deadlines, team
members hold a problem-solving session to identify time
management challenges and implement new strategies to improve
efficiency. 246
Approaches for Effective Conflict Resolution

• Communication Improvement:
• Conflict resolution can involve focusing on improving
communication between parties, such as using clear and
assertive communication techniques.
• Benefits: Improved communication reduces misunderstandings
and prevents conflicts from escalating.
• Example: In a conflict between coworkers due to
miscommunication over project timelines, they agree to provide
regular status updates and use clear language to avoid further
misunderstandings.
247
Approaches for Effective Conflict Resolution

• Avoidance:
• Avoidance entails temporarily stepping back from a conflict to
allow emotions to cool down and prevent further escalation.
• Benefits: In certain situations, avoidance can prevent conflicts
from escalating and allow parties to approach the issue with a
calmer perspective.
• Example: In a heated discussion between two team members,
they agree to take a break and revisit the topic later when
emotions have subsided.

248
Approaches for Effective Conflict Resolution

• Assertiveness Training:
• Assertiveness training helps individuals develop effective
communication skills to express their needs, opinions, and
boundaries clearly.
• Benefits: Being assertive can prevent conflicts from arising by
addressing issues proactively and respectfully.
• Example: In a conflict between a manager and an employee,
assertiveness training helps the employee express their
concerns and needs directly to the manager.

249
Approaches for Effective Conflict Resolution

• Emotional Intelligence Development:

• Emotional intelligence training focuses on understanding and
managing emotions, both one's own and others', to handle
conflicts with empathy and self-awareness.
• Benefits: Emotional intelligence enhances conflict resolution by
promoting empathy, emotional regulation, and effective
communication.
• Example: A supervisor participates in emotional intelligence
workshops, improving their ability to understand and respond to
team members' emotions during conflicts.
250
REWARDING TEAM
PERFORMANCE
Chapter 8
 Incentive Pay Terminology

• Pay-for Performance
• Variable Pay
• Profit Sharing

Copyright © 2017 Pearson Education, Ltd. 12-252

Linking Strategy, Performance, and
Incentive Pay

Copyright © 2017 Pearson Education, Ltd. 12-253

 Individual Employee Incentive and
Recognition Programs

• Piecework plans
o Straight
piecework
o Standard hour
plans
o Pros and Cons

Copyright © 2017 Pearson Education, Ltd. 12-254

 Merit Pay as an Incentive

• Merit pay as an
incentive
o Differential pay
increases
o Merit pay
options

Copyright © 2017 Pearson Education, Ltd. 12-255

 Non-financial and
Recognition-Base Awards

• Social Recognition
• Performance
Feedback

Copyright © 2017 Pearson Education, Ltd. 12-256

Improving Performance: HR Tools for Line
Managers and Small Businesses

Financial Incentives for

Motivation

Let’s talk about it…

Copyright © 2017 Pearson Education, Ltd. 12-257

List of Recognition

Copyright © 2017 Pearson Education, Ltd. 12-258

Improving Performance:
The Strategic Context

The Fast-Food Chain

Let’s talk about it…

Copyright © 2017 Pearson Education, Ltd. 12-259

 Incentives for Salespeople

1. Align how to measure

and reward

2. Align with Strategic

Goals

Copyright © 2017 Pearson Education, Ltd. 12-260

 Types of Sales Incentive Plans

1. Salary plan
2. Commission plan
3. Combination plan

Copyright © 2017 Pearson Education, Ltd. 12-261

Maximizing Sales Force Results

• Set Effective Quotas

• Distinguish Among Performers

Copyright © 2017 Pearson Education, Ltd. 12-262

Sales Incentives in Action

Copyright © 2017 Pearson Education, Ltd. 12-263

 Incentives for Managers and
Executives

• Short-term Incentives
• Long-term incentives

Copyright © 2017 Pearson Education, Ltd. 12-264

Strategy and the Executive’s Long-Term
and Total Rewards Package

• Short-term incentives and the Annual

bonus
o Eligibility
o Fund size
o Individual awards
o Stock options
o Ethics

Copyright © 2017 Pearson Education, Ltd. 12-265

Some Other Executive
Incentives

Copyright © 2017 Pearson Education, Ltd. 12-266

 Team and Organization-Wide
Incentive Plans

• How Designing Team Incentives

• Evidence-Based HR: Inequities That
Undercut Team Incentives

Copyright © 2017 Pearson Education, Ltd. 12-267

 Organizational – Wide Plans

• Profit-sharing plans
• Scanlon plans
• Other Gainsharing Plans
• At-Risk Pay Plans
• Employee Stock Ownership Plans

Copyright © 2017 Pearson Education, Ltd. 12-268

 Team and Organization-
Wide Incentive Plans
• Profit-sharing plans
• Scanlon plans
• Other gain-sharing plans
• At-risk pay plans
• Employee stock ownership plans

Copyright © 2017 Pearson Education, Ltd. 12-269

The Benefits Picture Today

Copyright © 2017 Pearson Education, Ltd. 13-270

Policy Issues

Copyright © 2017 Pearson Education, Ltd. 13-271

Pay for Time Not Worked

• Supplemental Pay Benefits

• Can Be Very Costly

Copyright © 2017 Pearson Education, Ltd. 13-272

Unemployment Insurance

Copyright © 2017 Pearson Education, Ltd.

13-273
Vacation and Holidays

Copyright © 2017 Pearson Education, Ltd.

13-274
 Sick Leave

• Cost Reduction
• Sick “banks”

Copyright © 2017 Pearson Education, Ltd.

13-275
Improving Performance:
HR as a Profit Center

Controlling Sick Leave

Let’s talk about it…

Copyright © 2017 Pearson Education, Ltd. 13-276

Leaves and Family and Medical
Leave Act

Copyright © 2017 Pearson Education, Ltd.

13-277
 Severance Pay

• Dismissal
• Reduce Litigation
• Downsizing

Copyright © 2017 Pearson Education, Ltd.

13-278
 Worker’s Compensation

o Determining benefits
o Controlling costs

Copyright © 2017 Pearson Education, Ltd. 13-279

 Hospitalization, Health, and
Disability Insurance

o Coverage
 HMO
 PPO
o Mental Health
Benefits

Copyright © 2017 Pearson Education, Ltd. 13-280

 Trends in Employer Health Care
Cost Control

• Wellness programs
• Other cost-control options
 Consumer-driven Health Plans (CDHP)
 Defined Contribution
 Accountable Care Organization (ACO)
 Cost-Containment Specialist

Copyright © 2017 Pearson Education, Ltd. 13-281

 Insurance Benefits

• Long-term care
• Life insurance
• Benefits for part-
time and contingent
workers

Copyright © 2017 Pearson Education, Ltd. 13-282

 Social Security

• Retirement Benefits
• Survivor’s Benefits
• Death Benefit
• Disability
• Medicare

Copyright © 2017 Pearson Education, Ltd.

13-283
 Pension Plans

1. Contributory vs. Non-Contributory

2. Qualified vs. Non-qualified
3. Defined Contribution vs. Defined

Copyright © 2017 Pearson Education, Ltd.

13-284
 Other Pension Plans
1. 401(k) plans
2. Savings and Thrift
3. Profit-Sharing
4. Employee Stock
5. Cash Balance plans

Copyright © 2017 Pearson Education, Ltd. 13-285

Pension and Early Retirement

Copyright © 2017 Pearson Education, Ltd. 13-286

 Personal Services and
Family-Friendly Benefits

Copyright © 2017 Pearson Education, Ltd. 13-287

 Personal Services

• Credit Unions
• Legal Services
• Counseling
• Social and
Recreational
• EAP

Copyright © 2017 Pearson Education, Ltd. 13-288

 Family-Friendly
(Work-Life) Benefits

• Child / Elder Care

• Education
• Fitness
• Flexible
Schedules
• Other Services

Copyright © 2017 Pearson Education, Ltd. 13-289

 Diversity Counts
Domestic Partner Benefits

Copyright © 2017 Pearson Education, Ltd.

13-290
 Executive Perquisites

• Company planes
• Loans / Stock options
• Financial Counseling
• Relocation

Copyright © 2017 Pearson Education, Ltd. 13-291

Flexible Benefits Programs

Copyright © 2017 Pearson Education, Ltd. 13-292

 The Cafeteria Approach

Types of plans
o Flexible spending
o Debit cards
o Core plus options

Copyright © 2017 Pearson Education, Ltd. 13-293

 Flexible Work Schedules
o Flextime
o Telecommuting
o Compressed Workweek
o Job Share
o Work Share
o Effectiveness

Copyright © 2017 Pearson Education, Ltd. 13-294

EMBEDDING AGILE
CULTURE IN
HR AND BEYOND
Techniques for Fostering an Agile Culture Organization-
Wide
• Leadership Commitment
• Inspire Change: Leaders must model Agile behaviors
like adaptability, transparency, and collaboration.
• Enable Autonomy: Empower teams by delegating
decision-making authority where appropriate.
• Continuous Learning: Encourage leadership to
participate in Agile training and coaching.
Techniques for Fostering an Agile Culture Organization-
Wide
• Organizational Alignment
• Shared Vision: Develop a unified purpose that aligns
with Agile principles, emphasizing customer-centricity
and responsiveness.
• Cross-Functional Collaboration: Break down silos by
forming cross-departmental teams to tackle projects
collaboratively.
• Clear Communication: Regularly share goals,
progress, and learnings across the organization to foster
transparency.
Techniques for Fostering an Agile Culture Organization-
Wide
• Training and Skill Development
• Workshops and Bootcamps: Conduct Agile-specific
training sessions for employees at all levels.
• Role-Specific Coaching: Provide tailored guidance for
HR, management, and team members on how to
implement Agile practices in their work.
• Peer Learning: Encourage sharing of best practices
through knowledge-sharing sessions or communities of
practice.
Building a Culture of Continuous Improvement and
Adaptation
• Embed Feedback Mechanisms
• Employee Feedback: Conduct regular pulse surveys, 1-on-1
check-ins, and retrospective meetings to identify improvement
areas.
• 360-Degree Reviews: Facilitate comprehensive performance
evaluations that include peer and self-assessments.
• Encourage Experimentation
• Pilot Projects: Test new ideas on a small scale before rolling
them out organization-wide.
• Fail Fast, Learn Faster: Normalize learning from mistakes by
framing them as opportunities for growth.
Building a Culture of Continuous Improvement and
Adaptation
• Promote Data-Driven Decision-Making
• Use analytics to track key performance indicators (KPIs)
and identify trends.
• Continuously refine strategies based on real-time data
insights.
• Recognize and Celebrate Improvements
• Highlight successes, no matter how small, to motivate
employees.
• Reward contributions that lead to innovation or process
enhancements.
Sustaining Agile Transformation in HR Departments

• Define and Communicate Clear Goals

• Align HR transformation efforts with organizational
objectives.
• Regularly revisit and adapt goals to reflect evolving
business needs.
• Evolve HR Processes
• Replace static annual reviews with continuous
performance management.
• Use Agile frameworks (e.g., Scrum or Kanban) for HR
activities like recruitment, onboarding, and policy updates.
Sustaining Agile Transformation in HR Departments

• Foster Collaboration Between HR and Other Teams

• HR should act as a strategic partner, working closely with
other departments to align people strategies with business
goals.
• Implement cross-functional teams to address organizational
challenges collectively.
• Monitor and Celebrate Progress
• Track metrics like employee satisfaction, time-to-hire, and
retention rates.
• Celebrate milestones in the transformation journey to build
momentum.