Humres 4 6

7
Recruiting,
Selecting,
Training, and
Developing
Employees
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied
or duplicated, or posted to a publicly accessible website, in whole or in part.
LEARNING OUTCOMES
1. Describe the recruiting process, including
internal and external recruiting and the
importance of realistic job previews
2. Discuss the steps in the selection process and
the basic selection criteria used by most
organizations
cv
3. Identify and discuss popular selection

techniques that organizations use to hire new
employees
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly acce ssible website, in whole or in part. HRM4 | CH7 3
LEARNING OUTCOMES (Continued)
4. Describe the selection decision, including

potential selection errors and reliability and
validity
5. Discuss how organizations train and develop
new employees to better enable them to
perform effectively
RECRUITING
• Process of developing a pool of qualified applicants who
are interested in working for the organization
• Goals
– Optimization of qualified applicant pool
– Generation of a pool of applicants who are both
qualified and interested
– Providing an honest and candid assessment of
available jobs and opportunities
Organizational and Individual
Goals in Recruiting
Internal and External Recruiting
• Internal recruiting: Process of looking inside the
organization for existing qualified employees who are
eligible for promotion
– Job posting
– Supervisory recommendations
• External recruiting: Process of looking to sources
outside the organization for prospective employees
Advantages and Disadvantages of
Internal and External Recruiting
External Recruiting and Realistic
Job Previews
• Methods of external recruiting include:
– Word-of-mouth recruiting
– Advertisements
– Employment agencies
– College placement offices
– Digital recruiting
• Realistic job previews (RJP): Technique for ensuring that job
seekers understand the actual nature of jobs available to them
Steps in the Selection Process
Basic Selection Criteria
Education
Skills and
and
abilities
experience
Personal
Hiring for fit
characteristics
Popular Selection Techniques
• Applications and background checks
– Ask applicants to fill an employment application
• Weighted application blank
• Biodata application blank
• Employment tests: Measure characteristics of an individual
– Cognitive ability tests
– Psychomotor ability tests
– Personality tests and integrity tests
Popular Selection Techniques (Continued)
• Work simulations or work samples
• Personal interviews
– Structured employment interview
– Semistructured employment interview
– Unstructured employment interview
– Situational interview
• Other selection techniques
– References and recommendations
– Assessment centers
A Sample Selection Process
The Selection Decision - Multiple
Indicators
• By using multiple approaches, firms can counterbalance
the measurement error in one selection technique
against another
• Banding
• Permits firms to select applicants from some
underrepresented group in the organization while still
ensuring high performance standards
SELECTION ERRORS
• Firms make at least one occasional selection error and
hire the wrong person
– False positives: Applicants who are predicted to be
successful and are hired but who ultimately fail
– False negatives: Applicants who are predicted to fail
and are not hired but who would have been successful
if hired
Reliability and Validity
• Reliability: Consistency of a particular selection device
– Test–retest reliability, alternate-forms reliability, and
internal consistency reliability
• Validity: Scores on a test are related to performance on
a job
– Criterion-related validity: Extent to which a selection
technique accurately predicts elements of
performance
Legal and Effectiveness Issues in
Recruiting and Selection
• Legal issues
– Organization faced with a prima facie case of discrimination
must prove that the basis for selection decision was job related
• Demonstrated by establishing the validity of a selection
instrument
• Evaluating recruiting and selection
– Utility analysis: Determines the extent to which a selection
system provides real benefit to the organization
Assessing Training and Development
Needs
Training and Development Techniques
• Work-based programs
– Apprenticeships: Combination of on-the-job training and
classroom instruction
– Vestibule training: Job is performed under a condition that
closely simulates the real work environment
• Instructional-based programs
– Lectures or discussions
– Computer-assisted instruction
– Programmed instruction
Training and Development Techniques
(Continued)
• Management development
• Involves more generalized training for future managerial roles and
positions
• Organizational development (OD)
• System-wide effort to increase the organization’s overall
performance via planned interventions
• Techniques used include survey feedback, third-party
peacemaking, and process consultation
9
Compensation
and Benefits
LEARNING OUTCOMES
1. Describe the basic issues involved in
developing a compensation strategy
2. Discuss how organizations develop a
wage and salary structure
3. Identify and describe the basic issues
involved in wage and salary
administration
4. Discuss the basic considerations in
understanding benefit programs
5. Identify and describe mandated benefits

6. Identify and describe nonmandated
benefits
7. Discuss contemporary issues in
compensation and benefits
Compensation and Benefits
• Compensation: Set of rewards that
organizations provide to individuals for their
willingness to perform tasks
• Benefits: Various items of value beyond wages
that employees receive from the organization
– Rewards
– Incentives
Basic Purposes of Compensation
• Provide appropriate and equitable rewards to
employees
• Help employees focus on activities that the
organization considers important
• Increase employee efforts along desired lines
Internal and External Equity
• Internal equity: Comparisons made by employees to
other employees within the same organization
• External equity: Comparisons made by employees to
others employed by different organizations performing
similar jobs
– Pay surveys: Surveys of compensation paid to
employees by other employers in a particular
geographic area, industry, or occupational group
Wage versus Salaries
• Wages: Hourly compensation paid to operating
employees
– Time acts as the basis for determining wages
• Salary: Income paid to an individual on the basis of
performance, not on the basis of time
Strategic Options for Compensation
Determinants of Compensation Strategy
• Overall organizational strategy
• Ability to pay
• Ability to attract and retain employees
• Ability to bargain with the unions
Job-Evaluation Methods
• Classification system: Attempts to group sets of jobs
together into clusters
• Point system: Requires managers to quantify value of
various elements of specific jobs in objective terms
– Point manual: Carefully and specifically defines the
degrees of points from first to fifth
– Factor-comparison method: Assesses jobs on a
factor-by-factor basis using a factor-comparison scale
as a benchmark
Pay for Knowledge and Skill-Based Pay
• Pay for knowledge: Involves compensating
employees for learning specific information
• Skill-based pay: Rewards employees for
acquiring new skills
Wage and Salary Administration
• Ongoing process of managing a wage and salary structure
• Issues related to compensation
– Pay secrecy: Extent to which the compensation of any individual
in an organization is secret
– Pay compression: Equal pay granted to employees with
different levels of experience, or performance abilities, or both
• Pay inversion: New employees are paid more than
experienced employees
Nature of Benefits Programs
• Most organizations provide their employees with an array of benefits
• Cost of benefits programs
– Organizations spend huge amounts on benefits
– Employees are asked to bear costs of benefits
• Purposes of benefits programs
– Attracts better-qualified people
– Affects job satisfaction and subsequent turnover
Mandated Benefits
• Social Security System
is a social insurance program that aims to provide protection
to its members and beneficiaries. SSS members can avail of
maternity, sickness, disability, retirement, funeral and
death benefits.
Government Service Insurance System ( GSIS) serves as the
counterpart social insurance program for those who work in
government.
MANDATED BENEFITS
• The Employees' Compensation (EC) program aims to
assist workers who suffer work-connected sickness or
injury resulting in disability or death. The
benefits under the EC program may be enjoyed
simultaneously with benefits under the Social Security
program effective June 1984. 1.
MANDATED BENEFITS
• The Philippine Health Insurance Corporation
(PhilHealth) is a government corporation attached to the
Department of Health. It administers the National Health
Insurance Program, which was established to provide
health insurance coverage and ensure affordable and
accessible health care services for all Filipinos.
MANDATED BENEFITS
• The Home Development Mutual Fund (HDMF), more
popularly known as the Pag-IBIG Fund, is a Philippine
government-owned and controlled corporation under the
Department of Human Settlements and
Urban Development responsible for the administration
of the national savings program and affordable shelter ...
Non Mandated Benefits
• HEALTH PLAN/WELLNESS PROGRAM

• COMPANY RETIREMENT INCENTIVES
• PERQUISITE OR PERK
Executive Compensation
• Provided in two forms
– Base salary
– Some form of incentive pay
• Bonus
• Stock-option plan
Evaluating Compensation and Benefit
Programs
• Organizations that do not offer competitive pay and
benefit packages find it difficult to attract employees
– Also leads to high rates of voluntary turnover
• Efficiency of benefit programs depend on effective
communication with employees
10
Performance
Appraisal and
Career
Management
LEARNING OUTCOMES
1. Describe the purposes of performance appraisal in
organizations
2. Summarize the performance-appraisal process in
organizations
3. Identify and describe the most common methods that
managers use for performance appraisal
4. Discuss other general issues involving performance
appraisal in organizations
5. Describe the nature of careers in

organizations
6. Discuss human resource management and
career management
7. Identify and discuss basic career-
development issues and challenges
Performance Appraisal and Performance Management
• Performance appraisal: Specific and formal evaluation
of an employee
– Helps determine the degree to which an employee is performing
his or her job effectively
• Performance management: General set of activities
carried out by the organization to change (improve)
employee performance
Importance of Performance Appraisal
• Provides a benchmark to assess adequacy of
recruitment and selection processes
• Important for legal reasons
• Plays a role as part of the larger performance-
management process
• Basis of incentive pay systems designed to improve
motivation and performance
Goals of Performance Appraisal
• Provide valid and reliable measure of
employee performance in relevant dimensions
• Documentation
• Improve job performance, which requires that
employees receive:
– Accurate feedback
– Guidance
Performance Appraisal Process
Establish job duties
Establish and communicate

performance standards
Inspect or observe performance
Document or record observed

performance
Rate performance
LO
Roles in the Performance-Appraisal Process 2
Role of the organization

• Develop the appraisal process
• Determine timing of appraisals
• Ensure availability of clear and specific standards
Role of the rater

• Observe performance and process information gained
from observation
• Communicate results and consequences
• Prepare ratee to perform at desired levels
Roles in the Performance-Appraisal
Process (Continued)
• Role of the ratee
– Maintain a clear and unbiased view of performance
– Collect adequate information to avoid disagreements
during the process
Figure Sources of Information for
Performance Appraisal
© Cengage Learning®
Copyright ©2017 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. HRM4 | CH10 11
Methods for Appraising Performance
• Ranking methods versus rating methods
– Simple ranking method: Manager gives a rank-order
to each member of a particular work group from top to
bottom or from best to worst
– Paired-comparison method: Each individual
employee is compared with every other individual
employee, two at a time
– Forced-distribution method: Grouping employees
into predefined frequencies of performance ratings
Methods for Appraising Performance (Continued 1)
• Specific rating methods
– Graphic rating scale: Statement or question about some aspect
of an individual’s job performance
– Critical incident method: Relies on instances of especially
good or poor performance on the part of the employee
– Behaviorally anchored rating scale (BARS): Combination of
the graphic rating scale and the critical incident method
Methods for Appraising Performance
(Continued 2)
– Behavioral observation scale (BOS): Developed from critical
incidents like a BARS
• Uses more critical incidents to define specifically all
measures necessary for effective performance
– Management-by-objectives (MBO): System is based largely on
the extent to which individuals meet their personal performance
objectives
Figure Examples of Graphic Rating Scales
Figure Behaviorally Anchored Rating Scales
Rating Errors in Performance Appraisal
• Contrast error: When people are compared against one another
instead of against an objective standard
• Distributional errors: When rater tends to use only one part of the
rating scale
– Severity
– Leniency
– Central tendency
Rating Errors in Performance Appraisal
(Continued)
• Halo error: One positive performance characteristic may
cause the manager to rate all other aspects of
performance positively
• Horns error: When the manager downgrades other
aspects of an employee’s performance because of a
single performance dimension
Contextual Performance
• Tasks an employee does on the job that are not required
as part of the job but that still benefit the organization
• Organizational citizenship behaviors include:
– Willingness to stay late at work to finish deadlines
– Helping co-workers
– Performing tasks that help the organization
Evaluating the Performance-Appraisal Process
• Most firms claim to have dropped performance appraisal
since the usage of stack ratings have led to:
– Backstabbing
– Low levels of teamwork
– Feelings of frustration
• Performance-management technologies enable
collection of real-time performance data
Legal Issues in Performance Appraisal
• Appraisals showing evidence of disparate impact must
be validated in the same manner as any selection
technique
– Show that rating is job related
– Demonstrate that raters:
• Can observe rated behaviors
• Have training to help them appraise performance
better
CAREER
• Set of experiences and activities that people engage in
related to their job and livelihood over the course of their
working life
– Specific jobs performed by a person
– Responsibilities and activities that constitute the job
– Movements and transitions between jobs
– Individual’s overall assessment
– Feelings of job satisfaction
Figure The Traditional Model of Career Stages
Source: Adapted from Careers in Organizations, by Douglas T. Hall. Copyright © 1976 by Scott, Foresman, and Co.
Reprinted by permission of Douglas T. Hall and Lyman Porter.
Older Workers and Decision to Retire
• Curvilinear relationship exists between age and
performance
– Performance is highest when workers are youngest
and older
• Retired individuals are most likely to retire when:
– Adequate financial resources are available
– Health makes it difficult to continue work
Figure Individual and Organizational
Perspectives on Career Planning
Figure Steps in Career Planning
© Cengage Learning®
Career-Development Issues and Challenges
• Career-counseling programs
– Include formal and informal programs
– Concern over family-friendly work practices
• Dual-career and work-family issues
– Balancing family needs with work demands
– Work stress and family stress are connected

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7

3. Identify and discuss popular selection

4. Describe the selection decision, including

5. Identify and describe mandated benefits

• HEALTH PLAN/WELLNESS PROGRAM

5. Describe the nature of careers in

Establish and communicate

Inspect or observe performance

Document or record observed

Role of the organization

Role of the rater

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