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Total Rewards and Performance Management
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The Total Reward Principles
Create a positive and natural reward experience. Align rewards with business goals to create a win-win partnership. Extend people’s line of sight. Integrate rewards. Reward individual ongoing value with base pay Reward results with variable pay.
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Four Components of Total Rewards
Total Reward Components: The Better Workforce Deal Individual Growth Compelling Future Total Pay Positive Workplace
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Four Components of Total Rewards
Total Reward Components: The Better Workforce Deal Individual Growth Investment in people Development and training Performance management Career enhancement Compelling Future Vision and values Company growth and success Company image and reputation Stakeholdership Win-win over time Total Pay Base pay Variable pay, including stock Benefits or indirect pay Recognition and celebration Positive Workplace People focus Leadership Colleagues Work itself Involvement Trust and commitment Open communications
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Traditional Compensation System
Payment based on tasks Assumes stability of employment Rewards individual contributions Primarily wages, salaries, benefits, some bonuses Rigid, resistant to change
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Equity Issues Individual equity Compare my outcome/input ratio with some other’s outcome/input ratio Internal equity Relative worth of job within org Job evaluations External equity Market forces Supply/demand Conduct salary surveys
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Traditional Compensation: Paying Jobs (A)
Job analysis Job descriptions Job related information only Job specifications Person related information only KSAs, education, experience, certifications Job evaluation Identifies the relative worth of the job to the organization Not performance appraisal
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Traditional Compensation: Paying Jobs (B)
Job evaluation for pay range (hourly, weekly, monthly, yearly) Individual salary determination Seniority Cost of living adjustments Merit/performance Bonuses (all types) Some group plans Secrecy/managerial discretion Relatively static model
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Traditional Compensation: Paying Jobs (C)
Job evaluation Assumes “pay jobs,” not “pay people” Systematic method of comparing jobs Creates pay range for job, not person Tie to job description Legal, practical support May break job into components, or job factors Skill, effort, responsibility, working conditions (from EPA (1963)/FLSA (1938) External salary surveys Identify market rates Supply and demand for skills
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Job Evaluation Systems
Type of Comparison Job vs. Job JOB vs. Standard Whole Job Ranking (P. 247) Classification (P. 250) Specific Job Factors Factor Comparison (P. 255) Point Factor (P. 263) Part of Job
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Job Evaluation Systems
Compares which part of job Whole job Ranking Classification Specific job factors Factor comparison Point factor Type of comparison made Job vs. Job Ranking Factor comparison Job vs. Standards Classification Point factor
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What is Job Analysis …needed to perform a job.
Job analysis is a set of procedures which collect information describing the… Job Behaviors Job Activities Personal Characteristics Knowledge, Skills and Abilities (KSAs) …needed to perform a job.
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Uses of Job Analysis Applicant Recruitment Applicant Selection
Creating Job Descriptions Compensation Decisions Performance Appraisals Training
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Legal Reasons For Job Analysis
Uniform Guidelines state that companies should have a job analysis of the position completed to show the appropriateness of the employment decision In adverse impact and disparate treatment cases, courts immediately look to job analyses for evidence of decision validity
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Two Types of Job Analysis
Interviews – either individual or group Advantages: Questions can be adapted to fit answers Ensures deep understanding of the position Disadvantages Personal biases, Time consuming, One person in group can dominate discussion
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Two Types of Job Analysis
Questionnaires Advantages: Useful when there are a large number of participants Less time consuming than interviews Disadvantages: Costly to develop, can have problems with response rate
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Common Job Analysis Techniques
Task/KSA Analysis Used for: Creating job descriptions Recruitment/Selection Performance Appraisal Training Some compensation decisions Position Analysis Questionnaire (PAQ) Used for: Comparisons across jobs Some compensation decisions
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Task/KSA Analysis A method of collecting information about a position by talking with experts (e.g., incumbents, managers, etc.) Information is job-specific – cannot be generalized to other positions Typically consists of interviews and several surveys
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Task/KSA Advantages and Disadvantages
Gives an in depth understanding of a specific job Can be easily used for employment decisions, performance management, and training Disadvantages Very time consuming Problems of expert biases Cannot apply information to other jobs
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Task/KSA Methods Step 1: Collect information on the position being analyzed. Interviews, observation, participation, previous job analyses, Dictionary of Occupational Titles, or O*Net (a website maintained by the Dept. of Labor) Step 2: Create a preliminary list of the tasks and KSAs needed in that position. Step 3: Accuracy and completeness check. Send list to subject matter experts (SME) to check for accuracy or any missing job components Step 4: Criticality survey. Construct a survey to give to SMEs where they rate the importance of each task and KSAs Also good to ask how often tasks are done and when employees should have important KSAs. Step 5: Statistical analysis Drop tasks/KSAs with low means or high standard deviations. Step 6: Linkage survey Create survey asking SMEs to link tasks with the KSAs needed to complete them. What to do with unlinked KSAs? Drop them Step 7: Final task and KSA list
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Task/KSA Analysis for… Selection/Recruitment
Allows companies to determine the most important hiring qualifications Helps companies create accurate job descriptions for future and current employees. Helps make selection processes legally defensible.
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Example Task Statements for a Police Officer
Talks with community members Drives patrol vehicles Restrains suspects Explains laws to citizens Writes daily reports Completes parking tickets and other forms
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Example KSA list for Police Officer
Communication – Be able to effectively inform others either written or orally. Physically fit – Must be in good health and be able to perform rigorous activity if needed. Safe driving – Able to safely operate patrol vehicles on residential streets and highways at normal and high speeds
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Task/KSA analysis for… Training
Identifies KSAs necessary for a position, which helps with training design Can help to decide what skills are most important to help create training strategy Can identify which skills can be trained and which need to be present at hiring
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Task/KSA Analysis for… Performance Appraisal
Identifies job relevant behaviors to include on performance management tools. Helps to ensure that rating systems for performance management, pay decisions, and employment decisions are valid.
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Position Analysis Questionnaire (PAQ)
The PAQ is a generic, off-the-shelf survey Consists of 195 items Worker-oriented – items describe general worker characteristics PAQ is filled out by trained observers who are experts on the position
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PAQ – Example Items Importance to this job Very Minor
0) Does Not Apply Very Minor Low Intermediate High Extreme Rate how important each of the below is to the position Long-handled tools (e.g., hoes, rakes, shovels, picks, axes, brooms or mops) Applicators (e.g., brushes, rags, or paint rollers which are hand-held and used in applying solutions or materials)
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PAQ – Advantages/Disadvantages
Allows for comparison across jobs No development cost Smaller samples can be used Less time consuming than Task/KSA analysis Disadvantages Costly to administer? Does not tell you detailed information about specific jobs Doesn’t do well at distinguishing between jobs Requires a college reading level
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Job Analysis for… Compensation Decisions
Task/KSA analysis establishes valid job components to base performance appraisals and pay changes on. PAQ allows for comparisons of jobs with other generally similar jobs Benchmarking
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Tips for Job Analysis Job analyses should be updated regularly or when the responsibilities of the position change For increased legal defensibility, document the job analysis process
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Questions?
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In Class Activity Task/KSA analysis Directions
Position: Police Officer SMEs: You Directions Split into groups of 3-5 people In your group, take minutes to create two lists - The tasks associated with being a police officer The KSAs needed to be a police officer
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Performance Management Defined
This is an ongoing communication process, undertaken in partnership, between an employee and his or her immediate supervisor that involves establishing clear expectations and understanding about the jobs to be done. It is a system.
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Performance Appraisal and Employee Productivity
Capital Technology Human Resources
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What people do!?
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Systems Staffing Training Motivation Appraisal
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Adverse Impact
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The Process
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So?
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Performance Appraisal and The Law
Test?
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CRA, 1964 Title VII EEOC OFCC/OFCCP
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Job Related
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JA
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Defensible Criteria
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Business Necessity
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CSRA, 1978
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Preventive Measures
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So?
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System Development & Validation
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Do people know what they are supposed to do?
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Traits
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Cost-Related Outcomes
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MBO
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Goal Setting
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Behaviorally-Based
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Appraisal Instruments
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Forced-Choice Scales
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BARS/BES and BOS
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Behaviorally Anchored Rating Scales/Behavioral Expectation Scales
Behavioral anchors Each # has a discrete meaning Critical incidents Expectations only One scale per dimension/ criterion Many behaviors on each scale Requires internal consistency between behaviors Allows for feedback
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BARS (Behaviorally Anchored Rating Scales)
very poor very good Self-Management Communication Attitude ?
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Behavioral Expectation Scale (Employee example: Work Habits)
Could be expected to come to work 5 days/week 6 … 5 Could be expected to inform supervisor in event of an absenteeism or late arrival 4 … 3 Could be expected to miss 2-3 days of work per month 2 … 1 Could be expected to come to work on what appears to be a random schedule
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BOS (Behavioral Observation Scales)
Numerical anchors “Almost never,” “almost always” Critical incidents Observations Many scales per dimension/ criterion One scale per behavior Allows for feedback Allows for comparisons between employees
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Behavioral Observation Scales (Manager example: Overcoming Resistance to Change)
Almost Almost Never Always Describes the details of the change to subordinates ___ ___ ___ ___ ___ ___ ___ Explains why the change is necessary ___ ___ ___ ___ ___ ___ ___ Discusses how the change will affect the employee ___ ___ ___ ___ ___ ___ ___ Listens to the employee’s concerns ___ ___ ___ ___ ___ ___ ___ Asks the employee for help in making the change work ___ ___ ___ ___ ___ ___ ___ If necessary, specifies the date for a follow-up meeting to respond to the employee’s concerns ___ ___ ___ ___ ___ ___ ___ Total = _____ Below Adequate 6-10 Adequate Full Excellent Superior
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So?
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