Human Resources Final Chp 10 What is employee development 12 03 2015 Involves activities that influence personal and professional growth generally help employees learn skills that will be helpful in future jobs How is employee development different from training Training is concerned with ensuring that employees have the knowledge and skills to perform their current jobs How is employee development strategic Developmental practices are strategic when they help that organization maintain a continual supply of talented and committed employees Organizations w external labor orientation must offer programs that prepare people for their work and are valued by external labor market Organizations w internal labor orientation must offer a broader range of programs including assessments and developmental relationships Organizations w cost strategy can control developmental costs by making use of work experiences for development Organizations w differentiation strategy use a wider variety of developmental opportunities to foster innovation and collaboration How can organizations help develop employees Formal education o Formal experiences such as training courses o Includes courses designed for the company s employees o certification and licensing Assessments and Feedback o Involves collecting information and providing feedback to employers about their interests personality behavior Work Experiences o Job enrichment involves adding challenges or new responsibilities to employees jobs o Lateral moves upward and downward moves Developmental Relationships o Coach o Sponsorship o Role model o Mentor What is career Pattern of work experiences a person has over his or her lifetime Differences between traditional and protean career path Protean career path is characterized by personal responsibility continuous and self directed development and an emphasis on psychological success A typical career pattern includes a career ladder a sequence of promotions with focus on the organization Basically protean is focused on the person and traditional is focused more on organization Career Development Process Includes 4 steps o Self assessment process in which employees determine their interests values personalities and skills o Reality check process in which employees determine the accuracy of their self assessments and how those assessments fit w opportunities in the environment o Goal setting process in which employees set milestones or desired achievements for the future o Action planning process in which employees plan how they will achieve their goals 12 03 2015 Chapter 11 Motivating Employees Through Compensation What is employee compensation HR practice of rewarding employees for their contributions External vs Internal Equity External employee perceptions of fairness based on how much they are paid relative to people working in other organizations Internal employee perceptions of fairness based on how much they are paid relative to others working in same organization Aligning compensation with HR Strategy Differentiation HR strategy is associated w variable rewards which have the overall goal of spreading out compensation so that high performers are paid more than low performers Cost reduction strategy is associated w uniform rewards and is aimed at providing consistent compensation so that employees are treated the same regardless of differences in performance Uniform transactional compensation reward package that uses money to build commitment and minimizes differences in the pay levels of employees often associated w bargain laborer Uniform relational compensation reward package that develops long term loyalty and minimizes differences in the pay levels of employees often associated w loyal soldier Variable transactional compensation reward package that uses money to build commitment and emphasizes differences in the pay of high and low performers associated with free agent HR strategy o Salary compression situation created when new employees receive higher pay than employees who have been w the organization for a long time even though they perform the same job Variable Relational Compensation reward package that develops long term loyalty and emphasizes differences in the pay of high and low performers common w committed expert HR strategy Three Elements of Motivation Behavioral choice involves deciding whether to perform a particular action Intensity concerns deciding how much effort to put in behavior Persistence involves deciding how long to keep working at the behavior Theories of Motivation Reinforcement Theory psychological theory suggesting that people are motivated by antecedents environmental cues and consequents rewards and punishments o Contingency reinforcement principle requiring that desirable consequents only be given after the occurrence of a desirable behavior o Pay for performance compensation practices that use differences in employee performance to determine differences in pay Goal Setting Theory psychological theory suggesting that an individual s conscious choices explain motivation o 1 Goal s focus attention away from other activities toward the desired behavior o 2 Goals get people energized and excited about accomplishing something worthwhile o 3 people work on tasks longer when they have specific goals o 4 goals encourage the discovery and use of knowledge Justice Theory psychological theory suggesting that motivation is driven by beliefs about fairness o Equity theory justice perspective suggesting that people determine the fairness of their pay by comparing what they give to and receive from the organization w what others give and receive o Disruptive justice perceptions of fairness based on the outcomes such as pay received from an organization o Procedural justice perceptions of fairness based on the processes used to allocate outcomes such as pay Expectancy Theory proposes that motivation comes from three beliefs valence instrumentality and expectancy o Expectancy can I achieve reward o Instrumentality will I really receive the reward o Valence do I value the reward Agency Theory economic theory that uses differences in the interests of principals owners and agents employees to describe reactions to compensation Variable Compensation and Motivation Importance of pay for performance is high in organizations using variable compensation Unfortunately many variable compensation practices fail to motivate because the size of the potential reward isn t large enough