MGMT 3000 1st Edition Lecture 22 Outline of Last Lecture I Federal employment Laws II Effect of Laws III Sexual Harassment IV Recruiting V Selection Outline of Current Lecture I Training Methods II Feedback III Compensation decisions IV Terminating employment Training Methods In order to choose the best training method need to consider number of people to be trained cost and objectives E learning Internet learning Cheap reduces costs increases productivity Not very affective not always appropriate boring and not engaging Evaluation of Training Four ways to evaluate training 1 Reactions how satisfied trainees were with the program 2 Learning how much employees improved knowledge or skills 3 Behavior How much employees actually changed their on the job behavior because of training 4 Results how much training improved job performance such as increased sales or quality Accurately measuring Job Performance Objective performance measures measure of performance that are easily or directly counted or quantified These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Subjective performance measures require someone to judge or assess a worker s performance Rater training training performance appraisal rates in how to avoid rating errors and increase rater accuracy Performance Appraisal is the process of assessing how well employees are doing their jobs Most employees and managers intensely dislike this process Subjective Performance Appraisal Scales Most common is a graphic rating scale GRS Easy to construct and susceptible to rating errors Behavior Observation Scale BOS requires raters to rate the frequency with which workers perform specific behaviors reprehensive of their job Sharing Performance feedback Employees become defensive and managers also become defensive when receiving feedback 360 Degree feedbacks comes from 4 sources 1 Boss 2 Subordinates 3 Peers and coworkers 4 Employees themselves Improving Feedback Separate development feedback improve future performance from administrative feedback A reward for past performance Base Performance appraisal feedback sessions of employee self appraisals employees assess own strengths weaknesses successes and failures Note what people do with the performance feedback Compensation decisions Pay level decisions Decisions about whether to pay workers at a level above below or at current market wages Job evaluation Determines the worth of each job by determining the market value of skills required to perform it Pay variability Decisions Extent to which employees pay varies with individual and company performance Piecework employees are paid a set rate for each item produced up to some standard and once the standard is reached employees are paid a set amount for each unit over the standard Commission salespeople are paid a percentage of purchase price of items they sell o More they sell the more they earn Profit Sharing Employees receive a portion of organizations profits over and above their regular compensation Employee Stock Ownership plans ESOP s compensate employees by awarding them shares of company stock in addition to regular pay Stock options give employees right to purchase shares of stock at a set price Pay structure decisions concern with internal pay distribution Hierarchical Pay structures involve big differences from one pay level to another o Differences in pay between jobs should motivate people to work harder Compressed pay structures have fewer pay levels and smaller differences o Less dispersed and more similar pay o Lead to higher levels of corporation feeling of fairness and common purpose Employee benefits Include any kind of compensation other than direct wages Cafeteria flexible benefit plans allow employees to choose which benefits they receive up to a certain dollar value Terminating employees Firing is not the first option in most situations Employees should be fired only for a good reason In Georgia you do not need a reason to fire as long as it is not discriminatory Employees should be fired in private Downsizing Planned elimination of jobs in a company Decreases productivity and may lead to loss of skilled workers Outplacement services provide employment counseling for people faced with downsizing Employee Turnover Loss of employees who choose to leave company Function turnover is the loss of poor performing employees who leave the organization Dysfunctional Loss of high performers who choose to leave and are costly to an organization