HUMAN RESOURCE MANAGEMENT

HUMAN RESOURCE MANAGEMENT
By
Prof. Dr. PM. Budi Haryono
PART 6
TRAINING AND DEVELOPMENT
The objective of Training
Corporate may require extensive training before
they are ready to make much of a contribution
to the organization. Almost any employee,
however needs some type of ongoing taining to
maintain effective performance or to adjust to
new ways of work.
By Prof.Dr. PM. Budi Haryono

Training and Development
Training tends to be more narrowly focused and
oriented short term performance and
Development tends to be oriented more
broadening an individual skill for future
responsibilities. Training and Development
the combination of activities organization use
to increase skill base of employee.

Investment in Training
• Training Dollars Spent by Employee Type
$25.00
$19.80
$20.00
(in billions of dollars)
39%
$15.00
$12.60 $12.40
$10.00 25% 24%
$6.50
$5.00
13%
$-
Series1
Executives Managers Supervisors Employees
Source : Holly Dolezalek, 2004 Industry Report,

Training (October 2004): 28. By Prof.Dr. PM. Budi Haryono
Conducting Needs Assessment
• System Model of Training
PHASE 4
Evaluation
PHASE 3 • Reactions
Implementation • Learning
• Behavior
PHASE 2 • Organization (transfer)
analysis • Results
Design
• Task analysis
PHASE 1 • Instructional • Person analysis
objectives
Needs Assesment • Trainee readiness
• Organization • Learning
analysis principles
• Task analysis
• Person analysis
Note : U.S. Organizations spend more than $50 billion annualy from training. Much of that
invesment is wasted because it is not done in a systematic way.
Needs Assessment for Training
... of environment, strategies, and
• Organization Analysis resources to determine where to
emphasize training.
... of the activities to be performed

• Task Analysis in order to determine the KSAs
needed.
... of performance, knowledge, and

• Person Analysis skills in order te determine who
needs training.

Designing Training Program
• Instructional Objective : Desired outcomes of a training
program
Trainee Readiness and Motivation :
• Use positive reinforcement
• Eliminate threats and punishment
• Be Flexible
• Have participants set personal goals
• Design interesting instruction
• Break down physical and psychological obstacles to
learning
Principle of Learning
Goal
Modeling setting
Meaningfulness Individual
of presentation differences
PRINCIPLES
OF
LEARNING
Feedback & Active
reinforcement practice &
repetition
Massed Whole
vs vs
Distributed Part learning
learning

Behavior Modification
A Typical Learning Curve

High
Performance
Plateau
Low
Time (Weeks)

Characteristics of Instructors
1. Knowledge of subject
2. Adaptability
3. Sincerity
4. Sense of humor
5. Interest
6. Clear instruction
7. Individual assistance
8. Enthusiasm
Implementing Training Program
• On the Job Training (OJT) : apprenticeship
training , cooperative training (a training
program combines practical experience with
formal educationional classes), internship
program., classroom instruction, programmed
instruction (self directed learning), audiovisual
methods, e-learning (learning that take place
via e-media),simulated method.

The Proper Way to do On the Job Training :
(1)
• Prepare. Decide what employees need to be taught.
Identify the best sequence or steps of training. Decide how
best to demontrate these steps. Have materials, resources
& equipment ready.
• Reassure. Put each employee at ease. Learn about his or
her prior experience, and adjust accordingly. Try to get the
employee interested, relaxed, and motivated to learn.
• Orient. Show the employees the correct way to do the
job. Explain why it is done this way. Discuss how it relates
to other jobs. Let him or her ask lots of questions.

The Proper Way to do On the Job Training :
(2)
• Perform. When employees are ready, let them try the job
themselves. Give them an opportunity to practice the job and
guide them trough rough spots. Provide help & assitance at
first, then less as they continue.
• Evaluate. Check the employees’ performance, and question
them on how, why, when, and where they should do
something. Correct errors; repeat instructions.
• Reinforce & Review. Provide praise & encouragement, and
give feedback how the employee is doing. Continiu the
conversation & express confidence in his or her doing the job.

Delivery Method of Training
Other
5%
By computer (no
instructor)
17%
Instructor-led
(from remote loca-
Instructor-led
tion)
classroom
8%
70%

Training Methods for Management Development (MD) -1
On the Job Experiences :

• Coaching involves a continuing flow of instruction,comments and
suggestions from manager to subordinate.
• Understudy assignment groom an individual to take over a
managers job by gaining experience in handling important functions
of the job.
• Job rotation provides through variety of work experiences, the
broadened knowledge and understanding required to manage more
effectively.
• Lateral transfer involves horizontal movement through different
departments along with upward movement in the organization.

Training Methods for Management Development (MD) -2
On the Job Experiences :

• Special project and junior board provide an opportunity for individual to
become involved in the study of current problem, in planning, and
decision making activities.
• Action learning gives managers release time to work full time on projects
with others in the organization.In some case, is combined with classroom
instruction, discussion and conferences.
• Staff meetings enable participants to becaome more familiar with problem
and event occuring outside their immediate area by exposing them to the
ideas and thinking of other managers.
• Planned career progressions utilize all these different methods to provide
employee with the T and D necessary to progress through a series of jobs
requiring higher and higher levels of knowledge and/or skills.

Training Methods for Management
Development (MD)
• Seminars and Conference
• Case studies
• Management Games
• Role Playing
• Behavior Modeling Roleplay

Evaluating Training Program
1. Reactions Training
2. Learning Process
3. Behavior Change
4. Performance Results /ROI

ROI Examples :
• A program to train new machines operator cost $
15.000 to develop and implement.After completing
training, average number of part produced each
year incraesed by $3000 and profit on each year
part is $10, producing a net result of $30.000. ROI
= $30.000/$15.000 = 2. ROI ratio is > 1 positive is <
1 negative. Closely related to calculating the
firm’s training ROI is the process of Benchmarking
developmental services and practices against of
recognized leaders in industry
Benchmarking HR Training
MEASUREMENT HOW TO CALCULATE
Percent of payroll spent on training Total training expanditures / total payroll
Training dollars spent per employee Total training expanditures / total
employees served
Avarage training hours per employees Total number of training hours (hours x
participants) / total employee served
Percent of employees trained per year Total number of employees receiving
training / total employee population
HRD staff per 1000 employees Number of HRD staff / total employee
population x 1000
Cost saving as a ration training expenses Total saving in scrap or waste / dollars
invested in training
Profits per employee per year Total yearly gross profits / total number of
employees
Training costs per student hour Total costs of training / total number of
hours of training

Special Topic in Training and Development
• Orientation Training : The formal process of familiarizing
new employees with the organization, their job, and their
work unit.
• Basic Skill Training : remedial training for adults (reading,
writing,computing, speaking, listening, problem
solving,managing oneself, knowing how to learn, working
as part of a team, leading others)
• Team Training and Cross Training
• Diversity Training : Steering Committee represent all level
of the organization and mix of races, beliefs, ages and
gender and Managers accountable for achieving goals.

Team Training Skills
TEAM
PROCESS DYNAMICS
TRAINING
• Meeting skills
• Problem solving
• Brainstorming
• Decision making BEHAVIOR DYNAMICS
• Negotiation skills • Member communications
• Goal setting • Conflict resolution
• Presentation skills • Building trust
• Process analysis • Establishing norms
• Task eveluation • Handling difficult members
• Customer/vendor analysis • Diversity awareness
• Project planning • Team development stages
• Information management • Team issues/concerns
• Creativity • Team benefits
• Features of good teams
• Negotiations

PART 7
PERFORMANCE APPRAISAL
MANAGEMENT
Performance Appraisal
A process, typically
performed annually by
a supervisor for a
subordinate, designed
to help employees
understand their roles,
objectives,
expectations, and
performance success.
Performance Management
The process of creating a

work environment in
which people can
perform to the best of
their abilities

Purposes for Performance Appraisal
DEVELOPMENTAL ADMINISTRATIVE
Provide performance feedback Document personnel decisions
Identify individual strengths / weaknesses Determine promotion candidates
Recognize indinidual performance Determine transfers & assignments
Assist in goal identification Identify poor performance
Evaluate goal achivement Decide retention or termination
Identify individual training needs Decide on layoffs
Determine organizational training needs Validate selection criteria
Reinforce authority structure Meet legal requirements
Allow employees to discuss concerns Evaluate training programs/progress
Improve communication Personnel training
Provide a forum for leaders to help Make reward/compensation decisions

The Reason Appraisal Program sometimes Fail (1)
There are many reasons why performance appraisal systems
might not be effective. Some of the most common problems
include the following :
• Inadequate preparation on the part of manager.
• Employee is not given clear objectives at the beginning of the
performance period.
• Manager may not be able to observe performance or have all
the information.
• Performance standards may not be clear.
• Inconsistency in ratings among supervisors or other raters.
• Rating personality rather than performance.
• The halo effect, contrast effect, or some other perceptual
bias.
The Reason Appraisal Program sometimes Fail (2)
• Inappropriate time span (either too short or too long).
• Overemephasis on uchoracteristic performance.
• Inflated ratings because manager do not want to deal with
“bad news”.
• Subjective or vague language in written appraisal.
• Organizational politics or personal realtionships cloud
judgments.
• No thorough discussion of causes of performance problems.
• Manager may not be trained at evaliation or giving feedback.
• No follow up and coaching after the evaluation.

Other reasons performance appraisal program can fail
to yield the dsired results include the following :
1. There is little face to face discussion between the manager and the
employee being appraised.
2. The relationship between the employee’s job description and the criteria
on the appraisal form isn’t clear.
3. Managers feel that little or no benefit will be derived from the time and
energy spent in the process, or they are concerned only with bad
performances.
4. Manager dislike the face to face confrontation of appraisal interview.
5. Managers are not sufficiently adpt at rating employee or providing them
with appraisal feedback.
6. The judgemental role of appraisal conflicts with the helping role of
developing employees.
7. The appraisal is just a once a year event and there is little follow up
afterward.

Developing an Effective Appraisal Program
What are the Performance Standards :
1. Strategic Relevance
2. Criterion Deficiency
3. Criterion
Contamination
4. Reliability

Are you Complying with the Law :
1. Performance ratings must be job related with performance
standard developed through job analysis.
2. Employees must be given a written copy of their job standard in
advance of appraisals.
3. Managers who conduct the appraisal must be able to observe
the behavior they are rating.
4. Supervisors should be trained to use the appraisal form correctly.
5. Appraisal should be discussed openly with employees and
counselling or corrective guidance offered to help poor
performers improve their performance.
6. An appeals procedure should be established to enable
employees to express disagreement with the appraisal.

Alternative Source of Appraisal
Team
Superior
members
Vendors Peers
Self Suppliers
Subordinates Customers

Training Appraisers
• Establishing Appraisal Plan
• Eliminating Rater Error
• Feedback Training

Performance Appraisal Methods
• Trait Methods (Graphic rating scales : knowledge of work,
initiative, aplication, quality of work, volume of work; Mixed
Standard Scales : better than, equal to, worse than;Force
Choice Method : work hard, show initiative, produces poor
quality, work quickly,responsive to customer, lack good work
habits; Essay Method)
• Behavior Methods (Critical Incident Method, Behavioral
Checklist Method : able to explain clearly,keeps abreast of
new development technology,to be steady worker, react
quickly to customer, process order correctly; Behaviorally
Anchored Rating Scale (BARS):high, average, low; Behavior
Observation Scale (BOS): almost never, almost always)

Result Method:
• Productivity
Measures
• Management By
Objectives (MBO)

Result Method:
Performance Appraisal under MBO Program

Result Method:
• The Balanced Scorecard

Result Method:

Summary of Various Appraisal Methods

Three type of Appraisal Interviews
• Tell and Sell Interview
• Tell and Listen Interview
• Problem Solving Interview

Conducting the Appraisal Interview
• Ask for a Self Assessment
• Invite Participation
• Express Apreciation
• Minimize Criticism
• Change the Behavior, Not the Person
• Focus on Solving Problems
• Be Supportive
• Establish Goals
• Follow up Day to Day
Improving Performance
• Identifying Source of Ineffective Performance
(ability, motivation,environment)
• Performance Diagnosis
• Performance Diagnosis Action
• Scenario 1: Low competency

Performance Diagnosis
Source : Scott Sneel, Cornell University By Prof.Dr. PM. Budi Haryono

PART 8
MANAGING COMPENSATION
Linking Compensation to Organizational
Objectives
1. To reward employees past performance
2. To remain competitive in the labor market
3. To maintain salary equity among employees
4. To mesh employees future performance with
organizational goal
5. To control the compensation budget
6. To attract new employees
7. To reduce unnecessary turnover
Formal statements of compensation policies
typically include the following :
1. The rate of pay within the organization and whether it is to be
above,below or at the prevailing market rate.
2. The ability of the pay program to gain employee acceptance while
motivating employees to perform to the best of their abilities.
3. The pay level at which employees may be recruited and the pay
differential between new and more senior employees.
4. The intervals at which pay raises are to be granted and the extent
to which merit and/or seniority will influence the raises.
5. The pay levels needed to facilitate the achivement of a sound
financial position in relation to the products or services offered.

Pay for Performance
• A pay for performance standard serves to raise
productivity and lower labor cost in today
competitive economic environment.
• Pay for performance standard is a standard by
which managers tie compensation to
employees effort and performance.

Motivating Employees through
Compensation
1.Pay Equity
2.Expetancy Theory
and Pay
3.Pay Secrecy

Relation between Pay Equity & Motivation
My Input/ My Input/ Comparison Comparison
Output Ratio Output Ratio Person’s Person’s
Input/ Output Input/ Output
Ratio Ratio
Comparison My Input/
Person’s Output Ratio
Input/ Output
Ratio
INEQUITY EQUITY INEQUITY

Feelings of Being Underpaid Feelings of Being Paid Fairly Feelings of Being Overpaid
Doing > Receiving Doing = Receiving Doing < Receiving
The greater the perceived disparty between & , the greater motivation to
reduce the in equity.
Pay-for-Performance and Expectancy Theory
Expectancy Value
Linkage Linkage
Value
High High Pay
monetary
effort performance satisfaction
rewards

Employee Compensation
• All forms of pay or rewards

going to employees and
arising from their
employment.

Direct & Indirect Financial Payment
Direct Financial Payment
• Pay in the form of wages, salaries, incentives,
commisions, and bonuses.
Indirect Financial Payment

• Pay in the form of financial benefits such as
insurance.

Incentive
• A clear trend in strategic compensation
management is the growth of incentive plans,
also called variable pay. Variable pay tying pay
to some measure of individual,group or
organization performance.

Types of Incentive Plans
INDIVIDUAL GROUP ENTERPRISE
Piecework Team compensation Profit sharing
Standard hour plan Scanlon Plan Stock options
Bonuses Rucker Plan Employee stock ownership
Merit pay Improshare plans (ESOPs)
Lump-sum merit pay
Incentive awards
Sales incentives
Incentives for professional
employees
Executive compensation

EMPLOYEE BENEFITS
Strategic Benefit Planning Objective
1.Improve employee work satisfaction

2.Meet employee health and security
requirement
3.Attract and motivate employee
4.Retain top performing employee
5.Maintain a favorable competitive position

Flexible Benefit Plans : Advantage and
Disadvantage (1)
Advantages :
- Employees select benefits tomatch their individual needs.
- Benefit selections adapt to a constantly changing (diversified)
workforce.
- Employees gain greater understanding of benefits offerd to them
and the costs incurred.
- Employers maximize the psycological value of their benefits
program by paying only for higly desired benefits.
- Employers limit benefit costs by allowing employees to “buy”
benefits only up to a maximum (defined) amount.
- Employers gain competitive advantage in the recruiting and
retention of employees.

Flexible Benefit Plans : Advantage and
Disadvantage (2)
Disadvantages :
- Poor employee benefits selection result in
unwanted financial costs.
- There are certain added costs to establishing
and maintaning the flexible plan.
- Employees may choose benefits of high use of
them that increase employer premium costs.

Discretionary Major Employee Benefit (1)
• Healthcare Benefit
• Payment for Time Not Worked
• Supplemental Unemployment Benefit
• Life Insurance
• LongTerm Care Insurance
• Vacations and Holidays
• Sick Leave

Discretionary Major Employee Benefit (2)
• Retirement Program
• Pension Plans
• Emloyee Assistant Programs
• Counseling Services
• Child and Elder Care
• Credit Unions

By Prof. Dr. PM. Budi Haryono

HUMAN RESOURCE MANAGEMENT - Final Test

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

HUMAN RESOURCE MANAGEMENT - Final Test

Uploaded by

Copyright:

Available Formats

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

Source : Holly Dolezalek, 2004 Industry Report,

... of the activities to be performed

... of performance, knowledge, and

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

A Typical Learning Curve

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

On the Job Experiences :

By Prof.Dr. PM. Budi Haryono

On the Job Experiences :

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

The process of creating a

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

Source : Scott Sneel, Cornell University By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

INEQUITY EQUITY INEQUITY

Doing > Receiving Doing = Receiving Doing < Receiving

By Prof.Dr. PM. Budi Haryono

• All forms of pay or rewards

By Prof.Dr. PM. Budi Haryono

Indirect Financial Payment

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

1.Improve employee work satisfaction

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

By Prof.Dr. PM. Budi Haryono

You might also like