Chapter 7 - Training
Training can:
● Increase employees’ knowledge of foreign
competitors and cultures.
● Increase employees’ knowledge of foreign
competitors and cultures,
● Help ensure that employees have the basic skills
to work with new technology,
● Help employees understand how to work
effectively in teams to contribute to product and
service quality.
● Ensure that the company’s culture emphasizes
innovation, creativity, and learning.
● Ensure employment security by providing new
ways for employees to contribute to the
company when their jobs change, their interests
change, or their skills become obsolete.
● Prepare employees to accept and work more
effectively with each other, particularly with
minorities and women.
Training - is a planned effort by a company to facilitate
the learning of employees.
High-leverage training
➢ is linked to strategic business goals and
objectives,
➢ is supported by top management,
➢ relies on an instructional design model, and
➢ is compared or benchmarked to programs in
other organizations.
Continuous learning - requires employees to
understand the relationship between their jobs, their
work units, and the company and to be familiar with
company business goals.
The Training Process:
Needs Assessment
● Organizational Analysis
● Person Analysis
● Task Analysis
Ensuring Employees’ readiness for Training
● Attitudes and Motivation
● Basic Skills
Creating a Learning Environment
● Identification of learning objectives and training
outcomes
● Meaningful material
● Practice
● Feedback
● Observation of others
● Administering and coordinating program
Ensuring Transfer of Training
● Self-management strategies
● Peer and manager support
Selecting Training Methods
● Presentational Methods
● Hands-on Methods
● Group Methods
Evaluating Training Programs
● Identification of training outcomes and
evaluation design.
● Cost-benefit analysis
Needs Analysis
Organizational Analysis to Person Analysis to Task
Analysis
Motivation to learn - is the desire of the trainee to learn
the content of the training program.
Self-efficacy - is the employees' belief that they can
successfully learn the content of the training program.
Managers can increase employees' self-efficacy level by:
● Letting employees know that the purpose of
training is to improve performance, not identify
incompetencies.
● Providing as much information as possible about
the training program and its purpose.
● Showing employees the training success of their
peers.
● Providing employees with feedback.
Basic Skills:
Cognitive Ability - verbal comprehension, quantitative
ability, and reasoning ability
Reading Ability - the difficulty level of written materials
Creating a Learning Environment:
● Employees need to know why they should learn.
● Employees need meaningful training content.
● Employees need to have opportunities to
practice.
● Employees need feedback.
● Employees learn by observing, experiencing,
and interacting with others.
● Employees need to commit training content to
memory.
● Employees need the training program to be
properly coordinated and arranged.
Transfer of Training: Expatriate - is an employee sent by his or her company
● Climate for transfer to manage operations in a different country.
● Technological Support
● Manager support To be successful in overseas assignments, expatriates
● Peer Support need to be:
● Self-management skills ● Competent in their area of expertise
● Opportunity to use learned capability ● Able to communicate verbally and nonverbally
Selecting Training Methods: in the host country.
Presentation Methods ● Flexible, tolerant, and sensitive to cultural
● Instructor-led classroom format differences.
● Distance learning ● Motivated to succeed, able to enjoy the
● Audiovisual techniques challenges, and willing to learn.
Hands-on Methods ● Supported by their families.
● On-the-job training Three Phases of Cross-Cultural Preparation:
● Simulations 1. Predeparture Phase
● Business games and case studies 2. On-Site Phase
● Behavior modeling 3. Repatriation Phase
● To successfully manage a diverse workforce,
● Interactive video
companies need to ensure that:
● Web-based training
● Employees understand how their values and
Outcomes Used in Evaluating Training Programs
stereotypes influence their behavior toward
others of different gender, ethnic, racial, or
OUTCOME WHAT IS HOW religious backgrounds.
MEASURED MEASURED
● Employees gain an appreciation of cultural
Cognitive Acquisition of Pencil and paper differences among themselves.
Outcomes Knowledge tests ● Behaviors that isolate or intimidate minority
Work sample group members improve.
Types of diversity training:
Skill-based Behavior Skills Observation
Attitude awareness and change programs
Outcomes Work sample
Ratings Behavior based programs
Organizational socialization - is the process by which
Affective Motivation Interviews new employees are transformed into effective members
Outcomes Reaction to Program Focus groups of the company.
Attitudes Attitude surveys

Results Company Payoff Observation The three phases of socialization are:

Data from 1. Anticipatory Socialization - expectations about
information system the company, job, working conditions, and
or performance interpersonal relationships are developed.
records 2. Encounter Phase - occurs when the employee
Return on Economic value of Identification and begins a new job
Investment Training comparison of 3. Settling In / Settle-in Phase - employees start
costs and benefits to feel comfortable with their job demands and
of the program social relationships.
Orientation programs - play an important role in
socializing employees. It involves familiarizing new
employees with company rules, policies, and procedures
Chapter 8 - Performance Management The Attribute Approach:
1. Graphic Rating Scales - A list of traits is
Performance Management - is the process through evaluated by a five-point rating scale; Legally
which managers ensure that employee activities and questionable
outputs are congruent with the organization's goals. 2. Mixed-standard Scales - Define relevant
performance dimensions and then develop
Performance Appraisal - is the process through which statements representing good, average, and poor
an organization gets information on how well an performance along each dimension.
employee is doing his or her job. The Behavioral Approach:
1. Critical Incidents Approach - Requires
Performance Feedback - is the process of providing managers to keep record of specific examples of
employees information regarding their performance effective and ineffective performance
effectiveness. 2. Behaviorally Anchored Rating Scales (Bars)
3. Behavioral Observation Scales (Bos)
ORGANIZATIONAL MODEL OF 4. Organizational Behavior Modification - A
PERFORMANCE MANAGEMENT formal system of behavioral feedback and
reinforcement.
5. Assessment Centers - Multiple raters evaluate
employees’ performance on a number of
exercises
The Results Approach:
1. Management By Objectives - Top management
passes down company’s strategic goals to the
next layer of management, and these managers
define the goals they must achieve.
PURPOSES OF PERFORMANCE: 2. Productivity Management And Evaluation
● Administrative System (Promes) - Goal is to motivate
● Strategic employees to higher levels of productivity.
● Developmental The Quality Approach:
Performance: 1. A Performance Management System
● Strategic Concurrence Designed With A Strong Quality Orientation
● Specificity Can Be Expected To:
● Validity ● Emphasize an assessment of both person
● Acceptability and system factors in the measurement
system
● Reliability
The Comparative Approach: ● Emphasize that managers and
1. Ranking employees work together to solve
Simple ranking - ranks from highest to lowest performance problems
performer ● Involve both internal and external
Alternation ranking - crossing off best and customers in setting standards and
worst employees measuring performance
2. Forced Distribution - Employees are ranked in ● Use multiple sources to evaluate person
groups and helps managers to tailor development and system factors
activities based on their performance 2. Statistical Process Quality Control
3. Paired Comparison - Managers compare every Techniques Used:
employee with every other employee in the work ● Process-flow analysis
group. ● Cause-and-effect diagrams
 ● Pareto Chart Following Legal Guidelines:
● Control Chart ● Conduct a valid job analysis related to
● Histogram performance.
● Scattergram ● Base system on specific behaviors or results.
Sources For Performance Information: ● Train raters to use the system correctly.
● Supervisors ● Review performance ratings and allow for
● Peers employee appeal
● Subordinates ● Provide guidance/support for poor performers
● Self ● Use multiple raters
● Customers
Rater Errors In Performance Management: Chapter 9 - Employee Development
● Similar to me Comparison between Training and Development
● Contrast
● Central tendency
● Halo and horns
Appraisal Politics - A situation in which evaluators
purposefully distort ratings to achieve personal or
company goals
Approaches To Reducing Rater Error:
● Rater error training
● Rater accuracy training
● Calibration Meetings Approaches to Employee Development
Improving Performance Feedback ● Formal education
● Feedback should be given frequently, not once a ● Assessment
year ❖ Myers-Briggs test
● Create the right context for discussion ❖ Assessment center
❖ Benchmarks
● Ask employees to rate their performance before
❖ Performance appraisals
the session
● Job experiences
● Encourage the subordinate to participate in the
session ● Interpersonal relationships
Assessment center - multiple raters or evaluators
● Recognize effective performance through praise
evaluate employees’ performance on a number of
● Focus on solving problems
exercises; Usually off-site.
● Minimize criticism
Types of exercises include:
● Focus feedback on behavior or results, not on
● Leaderless group discussion
the person
● Interviews
● Agree to specific goals and set a date to review
● In-baskets
progress
● Role plays
Feedback Systems:
Solid Performers - High ability and motivation;
1. Upward feedback - is a performance appraisal
managers should provide development opportunities
process for managers that includes subordinates’
Underutilizers - High ability but lack motivation;
evaluations.
managers should focus on interpersonal abilities
2. 360 Degree Feedback - is a performance
Misdirected Effort - Low ability but high motivation;
appraisal system for managers that includes
managers should focus on training
evaluations from a wide range of persons who
Deadwood - Low ability and motivation; managerial
interact with the manager.
action, outplacement, demotion, firing
Employee Development Experiences
Upward-Downward Lateral Moves
Job Experiences
● Job enlargement - refers to adding challenges
and new responsibilities to employees’ current
jobs.
● Job rotation - involves providing employees
with a series of job assignments in various
functional areas of the company or movement
among jobs in a single functional area or
department.
● A transfer - is usually a lateral move in which
an employee is given a different job assignment
in a different area of the company.
● A downward move - occurs when an employee
is given a reduced level of responsibility and
authority.
Temporary Assignments
● Externship - refers to a company allowing
employees to take a full-time operational role at
another company.
● Sabbatical - which is a leave of absence from
the company to renew or develop skills.
Characteristics of Successful Mentoring Programs:
● Participation is voluntary
● Matching process if flexible
● Mentors are chosen on ability and willingness
● Purpose is clearly understood
● Program length is specified
● Minimum level of contact is specified
● Contact among participants is encouraged
● Program is evaluated
● Employee development is rewarded
Benefits of Mentoring Relationships for Protégés:
● Career Support - Coaching, protection,
sponsorship, and providing challenging
assignments, exposure, and visibility.
● Psychological support - Serving as a friend and
role model, providing positive regard and
acceptance, and creating an outlet for a protégé
to talk about anxieties and fears.
● Additional benefits - Promotion, higher
salaries, and greater influence.
A coach - is a peer or manager who works with an
employee to motivate him, help him develop skills, and
provide reinforcement and feedback.
Three roles a coach can play include:
● one-on-one
● help employee learn for himself or herself
● may involve providing resources such as
mentors, courses, or job experiences
Career Management Process:
1. Self-assessment - Identify opportunities and
needs to improve
2. Reality Check - Identify what needs are realistic
to develop
3. Goal Setting - Identify goal and method to
determine goal progress
4. Action planning - Identify steps and timetable
to reach goal
Special Issues
● Melting the glass ceiling - The glass ceiling is a
barrier to advancement to higher-level jobs in
the company that adversely affects women and
minorities.
● Succession planning - Identifying
high-potential employees.
● Dysfunctional managers
Chapter 10 - Employee Separation and Retention
To compete effectively, organizations must take steps to
ensure that good performers are motivated to stay with
the organization, whereas chronically low performers are
allowed, encouraged, or if necessary, forced to leave.
The two types of turnover are:
● Involuntary turnover—turnover initiated by
the organization (often among people who
would prefer to stay).
● Voluntary turnover—turnover initiated by
employees
MANAGING INVOLUNTARY TURNOVER:
● The employment-at-will doctrine - is a policy
that allows for termination of an employee with
or without a “good or just cause.”
● Violence in the workplace caused by involuntary
turnover has become a major organizational
problem in recent years.
● A standardized, systematic approach to
discipline and
PRINCIPLES OF JUSTICE:
● Outcome fairness - refers to the judgment that
people make with respect to the outcomes
received relative to the outcomes received by
other people with whom they identify.
● Procedural justice - focuses specifically on the
methods used to determine the outcomes
received.
● Interactional justice - refers to the
interpersonal nature of how the outcomes were
implemented.
Six Determinants of Procedural Justice:
1. Consistency
2. Bias suppression
3. Information accuracy
4. Correctability
5. Representativeness
6. Ethicality
Four Determinants of Interactional Justice:
1. Explanation
2. Social sensitivity
3. Consideration
4. Empathy
PROGRESSIVE DISCIPLINE
Effective discipline programs have two central
components:
● documentation
● progressive punitive measures
The organization determines responses for first, second,
third offenses, and
Alternative Dispute Resolution - this is a method of
resolving disputes that does not rely on the legal system
The four stages of ADR are:
1. Promote an open-door policy.
2. Perform peer reviews by individuals at the same
level in the organization.
3. Mediation by a neutral third party
4. Arbitration by a professional, from outside
organization
Employee Assistance Programs - These are programs
that attempt to ameliorate problems encountered by
workers who are drug dependent, alcoholic, or
psychologically troubled.
EAPs - are usually identified in official documents
published by the employer.
There are several issues in controversy regarding
EAPs.
Outplacement Counseling - A form of counseling that
tries to help displaced employees manage the transition
from one job to another.
Can be performed in-house or through an outside
source.
It is aimed at helping people realize that losing a job is
not the end of the world and that other opportunities
exist.
MANAGING VOLUNTARY TURNOVER - JOB
WITHDRAWAL
Progression of withdrawal - is a theory that
dissatisfied individuals enact a set of behaviors in
succession to avoid their work situation.
Three categories include:
1. behavior change (Whistle-blowing)
2. physical job withdraw
3. psychological job withdraw
(Job Involvement Organizational Commitment)
Withdrawal behaviors - are related to one another, Sources Of Job Dissatisfaction
and they are all at least partially caused by job ● Personal Dispositions
dissatisfaction. ❖ Negative Affectivity - a dispositional
dimension that reflects pervasive
BEHAVIOR CHANGE individual differences in satisfaction
● An employee's first response to dissatisfaction with any and all aspects of life.
would be to try to change the conditions that ● Tasks And Roles
generate the dissatisfaction. ❖ Job Rotation - the process of
● When employees are unionized, dissatisfaction systematically moving a single
leads to an increased number of grievances. individual from one job to another over
● Employees sometimes initiate change through the course of time. Supervisors And
whistle-blowing - making grievances public by Coworkers
going to the media. ❖ Job enrichment - refers to a specific
● Employees can sue their employers when the way to add complexity and
disputed policies relate to an aspect of meaningfulness to a person's work.
employment that is covered by legislation. ● Supervisors and Co-workers
Physical Withdrawal - There are several ways a worker ❖ shared values, attitudes, and
can physically withdraw from the organization: philosophies,
● Leave the job ❖ strong social support,
● Internal transfer ❖ help in attaining some valued
● Absenteeism outcome.
● Tardiness ● Pay And Benefits
Psychological Withdrawal - If the primary ❖ For many people, pay is a reflection of
dissatisfaction has to do with the job itself, the employee self worth, so pay satisfaction takes
may display a very low level of job involvement, which on critical significance when it comes
is the degree to which people identify themselves with to retention.
their jobs. Role - what an organization expects from an
If the dissatisfaction is with the employer as a whole, employee.
the employee may display a low level of organizational Role ambiguity - the level of uncertainty about what the
commitment, which is the degree to which an employee organization expects from the employee in terms of what
identifies with the organization and is willing to put forth to do or how to do it.
effort on its behalf. Role conflict - the recognition of incompatible or
contradictory demands by the person who occupies the
Job Satisfaction - is a pleasurable feeling that results role.
from the perception that one's job fulfills or allows for Role overload - a state in which too many expectations
the fulfillment of one's important job values. or demands are placed on the person.
Three important aspects of satisfaction are values, Role-analysis technique - enables a role occupant and
perceptions, and importance. other members of the role occupant’s role set to specify
and examine their expectations for the role occupant
Frame of Reference - is a standard point that serves as
a comparison for other points and thus provides Survey Feedback Interventions - Reasons for
meaning. routinely surveying employee attitudes
It usually reflects average past experiences. include the following:
It can also reflect perceptions or other peoples’ ● It allows the company to monitor trends over
experiences. time.
● It provides a means of assessing change impacts
in policy.
 ● If a company uses a standardized scale, it can
compare itself with others in the same industry.
● If a company provides feedback and a
corresponding action plan to deal with problems,
dissatisfaction can become a plus.
Surveys:
● emphasize overall satisfaction.
● assess the impact of changes in policy.
● allow the company to compare itself with others
in the same industry.
● allow the company to check for differences
between units and benchmark “best practices”
that might be generalized across units.
● Give employees a constructive outlet for voicing
their concerns and frustrations. Voicing is a
formal opportunity to complain about one’s
work situation.
Chapter 11 - Pay Structure Decisions
From the employer’s point of view:
● Pay - is critical in attaining strategic goals.
● Pay - has a major impact on employee attitudes
and behaviors.
● Employee compensation - is typically a
significant organizational cost.
From the employee’s point of view:
● Policies having to do with wages, salaries, and
other earnings affect their overall income and
thus their standard of living.
● Both level of pay and fairness compared with
others’ pay are important.
Pay Decisions
Pay structure - refers to the relative pay of different
jobs (job structure) and how much they are paid (pay
structure).
Pay level - is the average pay in organizations,
including
wages, salaries, and bonuses.
Job structure - is the relative pay of jobs in
organizations
(i.e., the range of pay often expressed by salary grades).
Pay policies - are attached to jobs, not individuals.
Two types of employee social comparisons of pay are
especially relevant in making pay-level and job structure
decisions:
Two important competitive market challenges in
deciding what to pay its employees:
● Product-market competition – the challenge to
sell goods and services at a quantity and price
that will bring a return
● Labor-market competition – the amount an
organization must pay to compete against other
organizations that hire similar employees.
Employees as a Resource
● A philosophy that considers employees to be an
investment that will yield valuable returns.
● Controlling costs through noncompetitive pay
can result in low employee productivity and
quality.
● Pay policies and programs are one of the most
important human resource tools for encouraging
desired employee behaviors and discouraging
undesired behaviors.
Deciding pay levels - is discretionary, and is based on a
broad range. The organization has to decide whether to
pay at, below, or above the market average.
Efficiency wage theory - states that wages influence
worker productivity.
The benefits of higher wages may outweigh higher costs
when the organization's technology or structure depends
on highly skilled employees or when the organization
has difficulty observing and monitoring employee
performance.
Benchmarking - is a procedure by which an
organization compares its own practices against those of
the competition.
The following issues must be determined before
pay surveys are used:
● Which employers should be included in the
survey?
● Which jobs are included in the survey?
 ● If multiple surveys are used, how are all the rates
of pay weighted and combined?
Product-market comparisons will be more important
when:
● Labor costs represent a large share of total costs.
● Product demand is elastic.
● The supply of labor is inelastic.
● Employee skills are specific to the product
market.
Product-market comparisons will be more important
when:
● Attracting and retaining employees is difficult.
● The costs of recruiting are high.
Rate ranges - refer to different employees in the same
job that may have different pay rates.
Key jobs - are benchmark jobs that have relatively stable
content and are common to many organizations so that
market-pay survey data can be obtained.
Nonkey jobs - are unique to organizations and cannot be
directly valued or compared through the use of market
surveys.
A job structure - refers to the relative worth of various
jobs in the organization, based on internal comparisons.
Job evaluation - is an administrative procedure that
measures a job's worth to the organization.
The evaluation process - is composed of compensable
factors, which are the characteristics of jobs that an
organization values and chooses to pay for.
Job evaluators - often apply a weighting scheme to
account for the differing importance of the compensable
factors to the organization.
Three pay-setting approaches include:
● Market survey approach - the greatest
emphasis is on external comparisons. It bases
pay on market surveys that cover as many key
jobs as possible.
● Pay-policy line - a mathematical expression that
describes the relationship between a job’s pay
and its job evaluation points.
● Pay grades - grouping jobs of similar worth or
content together for pay administration
purposes.
The range spread - is the distance between the
minimum and maximum amounts in a pay
grade.
Conflicts between Market Pay Surveys and Job
Evaluation
● In resolving the conflict, emphasizing the
internal data would drive up labor costs and
create product-market problems.
● If external market data are emphasized and a job
is paid lower internally, the comparisons that
employees make internally would result in
dissatisfaction.
● There are no right answers. An organization
should consider its strategy and what jobs and/or
functions will be critical for success.
One way to examine the difference between policy and
practice is to: compute a compa-ratio, which is an index
of correspondence for actual and intended pay.
Pay structures can differ substantially across countries
both in terms of their level and in terms of the relative
worth of jobs.
Expatriate pay and benefits continue to be linked more
closely to the home country. However, this link appears
to be slowly weakening and now depends more on the
nature and length of the assignment.
Participation
➢ should involve both those who will manage the
process and those who will be affected by it.
➢ includes recommending, designing, and
communicating a pay program.
➢ Typically, pay-level decisions are only made by
top management.
Communication
➢ The effect of communication is likely to have an
impact on employees' perceptions of equity.
➢ Managers must be prepared to explain to
employees why the pay structure is designed the
way it is and to judge whether changes to the
structure should be made.
Job-based pay structures can create the following
problems:
● They encourage bureaucracy.
● They reinforce top-down decision making as
well as status differentials.
● The bureaucracy, time, and cost required to
generate and update job descriptions can become
a barrier to change.
 ● The job-based structure may not reward desired
behaviors, where the knowledge, skills, and
abilities needed yesterday may not be helpful
today and tomorrow.
● The system encourages promotion-seeking
behavior, but discourages lateral movement.
Responses to problems with job-based pay structures
include the following:
● Delayering - is reducing the number of job
levels. This provides more flexibility in job
assignments and assigning merit increases.
● A second response to job-based pay structure
problems has been to move away from linking
pay to jobs and toward building structures on
skill, knowledge, and competency.
❖ Skill-based pay - typically pays
individuals for the skills they are
capable of using rather than for the job
they are performing at a point in time.
Factors to consider in shifting production to other
countries include:
● Stability
● Nonlabor considerations
● Unit labor costs and G.D.P
● Quality and productivity
● The courts have consistently ruled that using the
going market rates of pay is an acceptable
defense in comparable worth litigation suits.
The Fair Labor Standards Act (FLSA) of 1938
established a minimum wage and overtime pay rate.
Minimum wage - is the lowest amount that employers
are legally allowed to pay.
The minimum wage now stands at $5.15 an hour.
Executive, professional, administrative, and outside sales
are exempt from FLSA coverage. Exempt means that
these employees are not covered by the FLSA, and they
are not eligible for overtime pay.
The Davis-Bacon Act and Walsh-Healy Public
Contracts Act - require federal contractors to pay
employees no less than the prevailing wages in the area.

Executive pay - has been given widespread attention in

the press. However, executive pay accounts for a small
proportion of the labor costs of an organization, and
executives have a disproportionate ability to influence
organizational performance.
Executives also help set the culture, so if their pay
seems unrelated to organizational performance,
employees may not understand why their pay should be
at risk depending on the organization's performance.

Equal Employment Opportunity (EEO) (Title VII) -

prohibits discrimination in all employment outcomes,
including pay,unless business necessity can be proven.
Comparable worth (or pay equity) - is a public policy
that advocates remedies for any under evaluation of
women's jobs.
● Based on the idea that individuals should obtain
equal pay, not just for jobs of equal content, but
for jobs of equal value or worth.