Training and Development of E. wployees Employee Orientation Noe et al. (2007), in the book Fundamentals of Human Resource Management, aptly said that employees today receive their first training during their first day on the job. This is the orientation of employees for them to become familiar with assigned tasks, the organization's practices, policies, and procedures. This is the procedure for providing new employees with some basic background information about the firm, its culture, and the job. It is similar to what sociologists refer to as socialization. Socialization is a process when a new employee learns the norms, values, goals, work procedures, and patterns of behavior that are expected by the organization. The initial period in an organization is also a critical point in determining whether a new employee will become a high performer or simply perform at a minimum or mediocre level. Regardless of the type of organization, orientation should be conducted at two levels: 1. OrganizationaV/overview orientation — topics discussed include overview of the company, key policies and procedures, compensation, benefits, safety and accident prevention, employees and union relation if there is any, physical facilities, and the like. 2. Departmental and job orientation — topics about the department function and the duties and responsibilities of the newly hired employee, policies, procedures, rules and regulations, tour of the department, and introduction to department employees. The HR department and the new employee’s immediate supervisor normally share the responsibility for the orientation. Training Defined It is a learning process that involves the acquisition of knowledge, sharpening of skills, concepts, rules, or changing of attitudes and behaviors to enhance the Performance of employees. ® Trwin Goldstein and Patrice Gilliam, “Training system issues in the year 2000,” American Psychologist (1990).Objectives of Training and Development 1, Improve productivity and the quality and quantity of output. This can lead ty an increase in an individual's skills in one or more areas of expertise. 2 Effectiveness in the present job. This involves increasing an individuar, motivation to perform his/her job well. 3. Create more favorable attitudes such as loyalty and cooperation 4. Help employees in their personal development and advancement by helping them acquire additional qualifications for a better job 5. Help organization respond to dynamic market conditions and changing customer demands 6. Satisfy human resource planning requirements Using Training to Deal with Competitive Challenges 1. Global challenge — In the advent of a borderless society, cross-cultural training is important to prepare employees and their families for possible overseas assignments. 2. Quality challenge — The emphasis on quality is seen in the establishment of the Malcolm Baldrige Quality Award and the ISO quality standards. As a result of these, the quality challenge has forced employers to train their employees to create high-quality products and services. 3. High performance work system challenge — New technology causes changes in skill requirements and work roles, and often results in redesigning work structures. Through new technology, the information needed to improve customer service and product quality becomes more accessible to employees. What role does training play? Employees need job-specific knowledge and basic skills to work with the equipment created with the new technology. Because technology is often used as a means to achieve product diversification and customization, employees must have the ability to listen and communicate with customers. The Training Process 1. Training Needs Analysis (TNA)/Needs Assessment This refers to the process used to determine if training is necessary. It identifies specific job performance deficiencies and increases productivity: Training is needed when significant differences exist between act performance and prescribed standards. It refers to a systematic, objectiv® identification of training needs. Consulting the supervisor can determine areas of need, revealed through performance appraisal, as well as the managers concerns for specific training needs to improve bottom-line performance. If needs can be pinpointed by hard data and survey information, training ©” lead to an increase in employee efficiency.Five Methods Used to Gather Needs Assessment Information™ a. Interviews ~can be used to take note of the problem of the employee in relation to the job, additional skills or knowledge the employee needs to better perform the job, and what training the employee believes is needed. b, Survey questionnaire - involves developing a list of skills required to perform particular jobs effectively and asking employees to check skills in which they believe they need training on. c. Observation ~ special its in the HR department who have been trained to conduct job analysis are usually adept at observing to identify training needs. d. Focus groups ~ employees from various departments who conduct focus group sessions to determine skills and knowledge needed by employees for the organization to ‘stay competitive and identify problems of the organization that can be solved by training. e. Documentation examination — this involves examining records like absenteeism, turnover, accident rates, and performance appraisal information to determine if problem exists and whether any —— identified can be addressed through training. Regardless of the methodology employed, a systematic and accurate need assessment should be undertaken before any training is conducted. Needs Assessment Process a. Organizational analysis — involves determining the appropriateness of training, given the company’s business strategy, its resources available for training, and support by managers and peers for training activities. b. Person/performance analysis — determining the training needs of current employees. This means verifying that there is a significant performance deficiency and whether that deficiency should be rectified through training. It involves determining whether performance deficiencies result from a lack of knowledge, skill, ability, or from a motivational or work design problem, It also involves identifying who needs training and determining employees’ readiness for training. c, Task analysis — assessing training needs of new employees. This is a detailed study of the job to determine what specific skills are required. It includes identifying the important tasks and knowledge, skills, and behaviors that need to be emphasized in training for employees to develop the skills and knowledge required for effective performance and for the employees to complete their tasks. % Allison Rosset, “Assess for Success,” Training and Development Journal (May 1991).1s fa can't do ot a won't do. Figure 5. Steps in Using Performance Analysis to Determine Training Needs Step 1 - Appraise employee performance to determine how employees a doing and how they should be doing their assigned task to take note of behavior discrepancy or lack of experience. Step 2- Determine cost of value of correcting identified behaviors! discrepancy to find out if it is worth the cost, time, and expens® involved. Step 3 — It is important to determine if the employee could do the expected job if he/she wanted to or he/she cannot do the job because of lack of skills.Step 4- Performance standards should be clearly communicated to improve performance of those who cannot do the job. For those who will not do the job, try to motivate them to change their attitude. Rewards, punishments, sanctions, or some combination may be needed to create a positive climate that results in the employee utilizing his/her skills optimally. Step 5 — Eliminate obstacles by determining other factors that can hinder performance such as time, equipment, and other people. Step 6 — Practice can help to improve performance. Step 7 - If performance analysis indicates the need to acquire skills, training is a viable consideration. Step 8 — In redesigning through job enrichment, job simplification may be the best solution. Step 9 - Last resort is either transfer or termination if performance is still a failure after exhausting all means to help the employee improve his/her performance. 2, Designing the Training Programs/ Training Objectives After determining training needs, objectives must be established to meet those needs. Effective training objectives should state the benefit to the different stakeholders in the organization. The outcome of the training or learning objectives can be categorized as follows: a. Instructional objectives — What principles, facts, and concepts should be learned in the training program taking into consideration the positions of the participants? b. Organizational and departmental objectives - What impact will the training have on organizational and departmental outcomes such as absenteeism, turnover, reduced costs, improved productivity, accident rate, and the like? c. Individual and growth objectives - What impact will the training have on the behavioral and attitudinal outcomes of the individual trainee and on the personal growth of the trainee? Importance of Training Objectives a. Considering that resources are always limited, the training objectives actually lead the design of training, It provides the clear guidelines and develops the training program in less time because objectives foc specifically on needs. It helps in adhering to a plan. ok a b. It tells the trainee what is expected out of him/her at the end of the training program. If the goal is set to be challenging and motivating, then the likelihood of achieving those goals is much higher than the situation in which no goa is et. Therefor, training objectives help in increasiny e probability th: i i ‘ eee Pp 'y that the participants will be successful in 67c. It becomes easy for the training evaluator to measure the progress the trainees because the objectives define the expected performance __ trainees. Training objective is an important tool to judge the performang, of participants. Training Design ‘The design of the training program can be undertaken only when a clear training objective has been produced. The training objective clarifies what goa) has to be achieved by the end of the training program, i.e., what the trainees ate expected to do at the end of their training. Training objectives assist trainers t, design the training program. A good training design requires close scrutiny of the trainees and thejy profiles. Age, experience, needs, and expectations of the trainees are some of the important factors that affect training design.” Validation Introduce and validate the training before a representative audience. Base final revisions on pilot results to ensure training effectiveness. When clearly defined objectives are lacking, it is impossible to evaluate a training program efficiently. 4. Implementation of the Training Program Once the staff, course, content, equipment, and topics are ready, the training is implemented. Completing the training design does not mean that the work is done because implementation phase requires continual adjusting, redesigning, and refining. Preparation is the most important factor to guarantee success. Therefore, the following are factors that should be kept in mind while implementing a training program: a. The trainer — The trainer needs to be prepared mentally before the delivery of content. The trainer prepares materials and activities well in advance, The trainer also set grounds before meeting with participants by making sure that he/she is comfortable with course content and is flexible in his/her approach. b. Physical setup - Good physical setup is a prerequisite for effective and successful training program because it makes the first impression 0% participants. The classroom should not be very small or big but as nearly square as possible. This will bring people together both physically and psychologically. Also, a right amount of space should be allocated every participant. Establishing rapport with participants ~ A trainer can establish good rapport with trainees by: greeting participants which is the simplest way to ease those initial tense moments; s ©. * encouraging informal conversation; * Training and Development (2007), http://traininganddevelopment.naukrihub.com an* remembering their first names; * pairing up the learners and have them get familiarized with one another; + listening carefully to trainees’ comments and opinions; * telling the learners by what name the trainer wants to be addressed; * getting to class before the arrival of learners; starting the class promptly at the scheduled time; + using familiar examples; varying the instructional techniques; and + using the alternate approach if one seems to bog down. d. Reviewing the agenda - At the beginning of the training program, it is very important to review the program objective. The trainer must tell the participants the goal of the program, what is expected of the trainers, the flow of the program, and how the program will run. The following information needs to be included: + Kinds of training activities + Schedule + Setting group norms + Housekeeping arrangements + Flow of the program + Handling problematic situations 5. Training Evaluation This will help check whether training has had the desired effect. Training evaluation ensures that candidates are able to implement their learning in their respective workplaces, or to the regular work routines. Purposes of Training Evaluation a. Feedback. Giving feedback helps the candidates define the objectives and , link them to learning outcomes. 6. Research. It helps in ascertaining the relationship between acquired knowledge, transfer of knowledge at the workplace, and training. Process of Training Evaluation® Before the Training ‘The learner's skills and knowledge are assessed before the training because this can help determine whether the actual outcomes are aligned with the expected outcomes of training. During the Training This is the phase at which instruction is started, This usually consists of short tests at regular intervals, eee {Training and Development, http:/traininganddevelopment.naukrihub.com/ " Training Evaluation, http://traininganddevelopment, ‘naukrihub.com/training-evaluation. htm! 69After the Training This phase is designed to determine whether training given the desired effect at individual departments and organizational leye| Observation, questionnaire, and interview are some of the technique, used for evaluation. One can also measure the success of the training program according to; a. Reaction of the learner The learners’ immediate reactions to the training can if they are already bored while the training is ongoing. Reaction ley should include measuring of trainees’ reactions to program conten, format, instructional techniques, abilities and style of trainer, extent j, which the training objectives were met, and the like. b. Learning level This refers to how well the trainees understood and absorbed the principles, facts, and skills taught. To obtain an accurate picture of what was learned, trainees should be tested before and after the program or through feedback devices using pretests and posttests to measure what learners have actually learned. ¢. Behavior of the learner Supervisor's reaction to learners’ performance following completion of the training should also be documented. This is to measure the degree to which learners apply newly acquired skills and knowledge to their jobs. To evaluate behavioral change, a systematic appraisal should be made including statistical analysis of on-the-job performance ona before-and-after basis and to relate changes to the training program. This should be made at least after six months after the training that the trainees will have an opportunity to put what they learned into practice. d. Results Determine the level of improvement in job performance and asses needed maintenance to ensure continuous good performance. This § an attempt to measure changes in variables such as reduced turnover, reduced costs, improved efficiency, reduction in grievance, and increas? in quality and quantity of production. Pretests, posttests, and controlled groups experimentation are also required to come up with accuraté results in the evaluation of the given training. Training Options There are 4 training options that an organization can consider before providisé training to their employees: 1, Outsourcing: Outsourcing allows organizations to concentrate on thei! core business. With the availability of sufficient amount of know-how Proficiency in the market, it does not make business sense for organizatog ia ee to have a separate training division. One approach is to tie up with 801 iployees for training. reputed training or educational institutes and send emy 7" lit This way, a company gets to avail the required expertise and high-quality training programs and saves money on content development, recruiting, and maintaining training team. The only issue in outsourcing training 16 that the quality of training has to be frequently tracked #0 as to ensure the trainer’s performance and training effectiveness. 2, Internal Training: A lot of questions has been raised whether to go in for outsource training or setting up an internal division for training. Some outsource companies recruit external trainers and call them to the company site to train employees. This alternative is generally for the new employees who are given the fundamental or job-related training in-house and then send outside for higher training. 3. Product-related Training: The dealer who delivers the apparatus or installs the system offers the initial training. The user may negotiate with the dealer for regular updates and upgrades of product-related know-how or expertise in place of a one-time training. The apparatus dealer may choose to send their trainers or recruit outside trainers. 4, Independent Professionals: Considering the emerging threats and opportunities, professionals need to keep themselves updated of the developments. In this option, the responsibility of training is entirely on the individual and a better-trained professional will always have better market worth than others. Outsourcing the Training of Employees The prospective benefits of outsourcing trainings are well-recognized. Organizations go for outsourcing to save training costs, gain access to practical and technical proficiency, concentrate on core competencies, and offer an overall enhanced training to their employees. Outsourcing also allows companies to deliver the best training to their employees 0 they can get the clients to the best of their abilities. With rapid globalization, increase in competition, technological innovation, increase in access to information, and improved customer services, the customer loyalty programs have become an ‘integral part of organizations. _ But if an organization lacks the resources, expertise, and finances, then there 18 a need to outsource. Outsourcing is a competent tool that ensures and offers convincing return on investment (ROI). Outsourcing subtracts the risk in setting upacomplicated function that is not a core competency. If outsourced to competitive eet topeulsanct then the savings could be as high as 50%, In addition to that, sourcing leads to customer retention, customer lo isfaction, tl gant aaa ee walty, customer satisfaction, 7Table 1. Top 20 Training Providers* 18M Leaming Solutions Delta College Raytheon Professional Services 10 | Affliated Computer Services, Inc. (ACS) 11__| Aptech Worldwide Corporation 12__| Convergys L 13 | Global Knowledge 14 | Intrepid Leaming Solutions 15 | innovatia 16 [Skill Sot 47 | Uonbridge 18 _| Expertus 19 | Knowledge Pool 20 | Development Dimensions international Table 2. Top Specialized Training Providers“ 1 Hewlett-Packard 2 Trifus 3 Siennax 4 Edista Leaning 5 Harbinger Knowledge Products 6 7 8 9 Sify eLearning LIQVID eLeaming Services InfoPro Learning, inc. Enhance Systems 10 ‘MountainTop Technologies, Inc. % Top 20 Training Providers, http://traininganddevelopment.naukrihub.com/training-providers html saline % Top Specialized Training Providers, http:/Itraininganddevelopment.naukrihub.com/specializet training-providers. html 72Training Methods** ‘There are various methods of training, which can be divided into cognitive and behavioral methods. Trainers need to understand the pros and cons of each method and its impact on trainees keeping their background and skills in mind before giving the training. ‘A. Cognitive methods dwell on giving theoretical training to the trainees. The various methods under cognitive approach provide the rules on how to do specific tasks such as written or verbal information and demonstrate relationships among concepts. These methods are associated with changes in knowledge and attitude by stimulating learning. The various methods that come under cognitive approach are: 1. Lecture/Discussion Approach It involves transmitting large amount of factual information to a large number of people at a given time. It is the traditional method of teaching and it is used in many training programs. It is primarily one way — from the trainer to the audience. A good lecture consists of introduction of the topic, purpose of the lecture, and priorities and preferences or the order in which the topic will be covered. Main Features: + Inability to identify and correct misunderstandings Less expensive + Can reach large number of people at once + Knowledge-building exercise + Less effective because lectures require long periods of trainee inactivity Table 3. Variations of the Lecture Method Trainer talks while trainees listen and absorb information. Team Teaching ‘Two or more trainers present different topics or alternative views of the same topic. . Guest Speakers ‘Speakers visit the sesson for a predetermined time period. Primary instruction is conducted by the guest speaker. ‘Two or more speakers presented information and ask questions, Groups of trainees present topics to the class. * Methods of Training, http:/traininganddevelopment.naukrihub.com/methods-of-training/ 732, Demonstrations/Hands-on Method ‘This requires the trainee to be actively involved in learning, Thiy is ideal for developing specific skills, understanding how skills can transferred to the job, and experiencing all aspects of completing a tagy This method is a visual display of how something works or to do something. As an example, a trainer shows the trainees how y, perform or how to do the tasks of the job. In order to be more effective, demonstration method should be accompanied by discussion or lectyp, method. Main Features: + Demonstrates the task by describing how to do, while doing + Helps the trainees focus their attention on critical aspects of the task + Explains why procedures should be carried out in a certain way ‘The difference between the lecture method and the demonstration method is the level of involvement of the trainee. 3. Computer-based Training (CBT) This is an interactive training experience in which the computer provides the learning stimulus where the trainee must respond. The computer analyzes the responses and provides feedback to the trainee CBT was one of the first new technologies to be used in training. Some of the benefits of computer-based training are shown in Figure 6. Allows Atfords learning at privacy of {an individual learning aCe. Figure 6. Benefits of Computer-based Training* ® Benefits of Computer- i ; a veh — ‘Based Training, http:/iwww.ehow.com/list_6503603_benefits-computer” 744. Virtual Reality Virtual reality is a training method that puts the part a 3-D environment. The three dimensional environment &) situations and events that are experienced in the job. The part n interacts with 3-D images to accomplish the training objectives. This type of environment is created to give the trainee an impression of physical involvement in an environment. To experience virtual reality, the trainee uses devices like headset, gloves, and treadmills. One advantage of virtual reality is that it allows the trainee to practice dangerous tasks without putting himself/herself or others in danger. The virtual reality environment can be identical to the actual work environment. This method is appropriate in the training of pilots and other airline crews. Devices include the following: Headset — provides audio and visual information + Gloves — provide tactile information + ‘Treadmill — used for creating a sense of movement + Sensory devices — transmit how the trainees are responding in the virtual workplace to the computer This allows the virtual reality (VR) system to respond by changing the environment appropriately. Features of Virtual Reality (VR) System + It is poorly understood and requires technical understanding. + Tt is expensive. + Itis time consuming. + Itis flexible in nature. + Tt does not incur traveling, lodging, or food cost. -+. It requires excellent infrastructure. B. Behavioral methods are more of giving practical trai ‘These methods are best used for skills development. The various methods that come under behavioral approach are: 1. Games and Simulations This method stimulates learning because participants are actively involved and they mimicthecompetitive nature of business, The decisions that participants make in games include all aspects of management practice: labor relations (agreement in contract negotiation), marketing (the price to charge for a new product), and finance (financing the purchase of new technology). ing to the trainees. A training game is defined as an activity or exercise in which trainees compete with each other according to the defined set of rules. Simulation is creating computer vi of real-life games. It is about imitating or making judgment or opining how events might occur in a real situation. 757" 2% Case Studies and Role Playing In this type of training, participants assume specificcharacterizayi, and act out a particular situation or problem. Rather than simpit talking about what the solution should be, the participants attempt?” solve the situation as if they were the real individuals involved, ‘Ty? method facilitates attitude change since the best procedure for chang” attitude is to have participants play roles in which they are asked ‘ express attitudes that are opposite to their own personal feelings,” This is an effective training technique for reducing role confi, between a supervisor and a union steward. A good training activity cq, have them reverse roles and allow them to resolve their differences, 3 On-the-Job Training (OJT) OST involves having a person learn a job by actually performing it The employee is shown how to perform the job and is allowed to do i under a trainer’s supervision. The length of the training will vary with the complexity of the job and the specific skills to be learned. Although OJT is simpler and less costly, if it is not handled properly the costs can be high in terms of possible damage to machinery unsatisfied customers, misfiled forms, and poorly taught workers, It is then a must to carefully select and train the trainer to use the most effective technique. Advantages of OJT a. No special space or equipment required b. Provides immediate transfer of training c. Allows employee to practice what they are expected to do after their training ends - Techniques for on-the-job development a. Coaching/Mentoring The coaches or mentors act as consultants who assist companies to prepare for succession by identifying and training future top executives. This involves coaching the employee through the use of periodic reviews of performance. Coaching lets subordinates know what theit supervisors think about how they do their jobs, enables supervisors and employees to work together on ways in which employees can improve their performance, improves communication and collaboration betwee" supervisors, and provides framework for establishing short and long: term personal career goals. b. dob Rotation Movement from one position to another provides employees wit? exposure to a number of different job functions and a broad grasp of the overall purpose of an organization, If directed by a skilled manager, the trainees can obtain valuable knowledge about diverse operations 4” can practice the different management skills that are required.It is the process of preparing employees at a lower level to gees someone at the next higher level. It is generally done for designations that are crucial for the effective and efficient functioning of the organization. This makes flexibility possible in the department especially when there are unexpected transfers, absences, promotions, or other replacements. Here, the employee benefits from learning a variety of skills while the company benefits from having a group of experienced candidates from whom to choose when vacancies occur. ¢c. dob Instruction Technique (JIT) This technique uses a strategy with focus on knowledge (factual and procedural), skills, and attitudes development. Before the actual learning occurs, it requires a careful analysis of the job to be performed, an assessment of what the trainee knows about the job, and a training schedule. In some cases, written instruction may be provided to serve as basis in completing a procedure or to operate a machine. This is effective for repetitive situations. Distance Learning or E-Learning in the Philippines A study conducted by the group of Arimbuyutan (2007) noted that e-learning can still be regarded as a new concept in the Philippines although open and distance learning has been documented to be introduced in the Philippines way back in 1952 through the Farmers’ School-on-the-Air program over a one kilowatt radio station in the province of Iloilo. This, according to them; is due to lack of infrastructure and access to technology such as computers, Internet connection, investment, and propensity of the Filipinos to maintain the status quo instead of implementing changes in training and learning system and processes. Based on the study, the first to adopt online corporate training methods in the Philippines as expected were the multinationals followed by local corporations that include the Philippine Long Distance Telephone Company (PLDT), Manila Electric Company (MERALCO), the Aboitiz Group, and Unilab. Findings include an account of how PLDT was able to benefit using distance learning. PLDT used e-learning techniques to significantly increase its number of certified CISCO network associates and to train employees across various °perational functions. Using their customized solution or Smart force as its Packaged software, they were able to encourage employees to pursue training in any area of the business they had interest in and blend e-learning with hands-on Projects, PLDT estimated that this kind of “e-cross training has sa ved the company over US$400,000 in training expenses over the past five years,”s" Benefits of E-Learning Unilab HR and Organizational Development (OD) head M enumerated three main benefits of e-learning, namely: SS " Reynato C. Arimbuyutan, Seoksoo Kim, Jae-gu Song, and Wooyo So, “A Stud; 7 for Philippines,” International Journal of Multimedia ap ie judy on e-Learning ind Ubiquitous Engineering, 2, no. 4 (2007), 48, herp//uww.serscorg/iournalsLIMUEWol2 nod 200715 pat Seer 2 No. jarne Amelia Dioquino 77BB ab ST Oe be ae gb iat eee * reduced logistion and adiiitiatration eomt, clvttipmnnd (4 UMP tidhoy conventional class mode; + wider variety of progrart ufferinga witiee conta 6Hf bi 164/788 OF HA, rue, to form a new motile; and + availability of courses at all time: Despite the benefits mentioned, ahs alag ernphinnizad that « lomttnne re ny 4, all companies becntse of the high invewtinent, Unitas han Merveleae #64 4 sy an e-learning facility, called U-loarn, a Wah: tinaed ayatenn that More 0/97. 4, employees. Unilab contracted global provider of Wat bmwed tenin tt, 9. tom to develop the facility, which includes ant onlin litremry with aber’ SLI) Wha, Employees can access the online library aftor payin, a ona -tirne low AA. p which is used to help maintain the facility, In the ease of SGV, the firm offers Web-based oonirnen to Commtanthy rotiy employees. These courses cover subjects on the firm's audit mathodclns Iz sampling, audit risk assessment, and substantive towing, Cnnphedion A ret 04 forms part of promotion criteria Employees can take courses either with supervision of an YOY intactey specialist or just by themselves in the comfort of their homes.” Problems in the Use of E-Learning 1. Poor telecommunication infrastructure ~ Despite the efforts A variowa It driven government agencies, a typical Filipino school still daws tt haw enough access to computers and the Internet. The level of “taledensity” b« not reached the stage where the Internet can function efficiently. Cx get to this is a lack of access to “bandwidth.” Cost of appliance - Itis said that problems of access to telecommumientiona se aggravated by lack of access to a working computer capable of connecting the Internet. The high student-to-computer ratio and the limited use A ICT in the public schools are major problems in the widesprond implementation of e-learning. 3. Cost of Services ~ In the Philippines, the trends include the use of preped Internet cards, use of mobile phones, iPod, and tablet that are all WHF ready, where the use of Internet is based on usage por minute, 4. Teachers’ fear of the technology because of limited know-how 5. Maintenance of ICT resources and lack of technical staff 8. Limited availability of education software and courseware ™ “Perfect Fit,” Business World (di Z coceptcne nn (une 2004), http://www twarldontine com/OntineXxchusives! ® Stuart Cunningham, The Business of Borderless Kdueation investiga y (Evaluation and 1 tiene Poeeame Higher Edueation Division, Department of Education, Training and Youth Affairs 78rea Case Study On-the-Job Training at Buenaobra’s Machine Shop Buenaobra’s Machine Shop employs about 300 people. During the summer months, production volume significantly increases and the company needs to hire about 40 new employees to handle the heavy workload. Most of these new employees are college and high school students who are on summer vacation. All newly hired employees are asked to fill up the company’s application form then instructed to go directly to the manufacturing site ready to start in their first day of work. They receive no orientation. The workers are shown to a workstation and after a minimum amount of on-the-job training, they are expected to start performing the jobs. Most of the jobs are quite simple and hence, training is completed within 5 to 10 minutes. The company has had excellent experience with the students over the years. Much of the success can be attributed to the older workers coming to the aid of the new employees when trouble or difficulties arise. One summer, the company experienced a rash of injuries to its employees. Although most of the injuries were minor, the company felt it imperative to conduct a series of short training programs on safe material-handling techniques. The company was at a loss as to who should conduct the training. Out of desperation, the president asked Jonathan Andres, one of the first line supervisors to conduct the training. Jonathan had recently attended a training program on safety and was active in the Red Cross. Jonathan reluctantly agreed to conduct the training. In the first training session, Jonathan nervously stood up in front of 14 employees, many of whom were college students and read his presentation in a monotone voice. His entire speech lasted about 7 minutes. After Jonathan's speech, the employees immediately returned to work. By the end of the day, however, everyone in the plant had heard about the training fiasco and all, except the president, were laughing about it. Inspired by the article about OJT for new workers found in www.calswee.berkeley.edwealswee! AlamedaCo_OJT_FullCurriculum doc Help the company president solve the problem by following the steps below: 1. State the main problem of Buenaobra’s Machine Shop. 2. State the different areas of consideration following the guide below: Strengths of the Company 81 ee82 Weaknesses of the Company Opportunities | Give your proposed solutions/alternative courses of action or ACA (minimum of three) to help the company president overcome the problem. Don’t forget to state the advantages and disadvantages of each solution. a. e see EAE AR Sa AEE Ec aR FAN PAGAL PEE MTEL IES GAR Ae We Ye SE gta aie ee eee ES Me NON Oe EN LO oe . State your recommendation based on your ACA. hk A pe aN an ot 1 BID UBRT SAR OAL PA See foe RR is Pet iol ey CARB anol mae dietitian , Provide a conclusion or detailed action plan to implement y™ recommendation using the guide below:Performance Review and Appraisal One of the most important activities of an HR manager is maintaining and enhancing the workforce. With all the efforts and costs that recruiting and selection entail, it is important to develop employees for them to use their fullest capabilities, thus, improving the effectiveness of the organization. Performance review is the ongoing process of evaluating and improving employees’ performance.” It is a process by which an individual’s work performance is assessed and evaluated. It answers the question, “How well has the employee performed during the period of Yime in question?” It also entails determining and communicating to an employee how he/she is performing on the job and ideally, establishing a plan of improvement. Performance is often confused with the effort that-refers to energy expended. Performance is measured in terms of result. Performance may be defined then as the accomplishment of an employee or manager's assigned duties and outcomes produced on a specified job function or activity during a specified time period. Performance review or evaluation, on the other hand, refers to a systematic description and review of an individual's job performance. The major contribution of performance management is its focus on achieving results—useful products and services for customers inside and outside the organization. Performance management redirects efforts away from business toward effectiveness. It is an HRM activity where the individual worker's efficiency is observed and appraised during a given period on the basis of a systematic uniform performance standard. It helps in identifying, collecting, sharing, and using information about the performance of people at work. Performance managementis an ongoing communication process, undertaken in partnership between an employee and his/her immediate supervisor. It involves establishing clear expectations and understanding about the following:* a. The essential job functions the employee is expected to do b. How the employee's job contributes to the goals of the organization c. What “doing the job well” means in concrete terms : 4. How the employee and supervisor will work together to sustain, improve, or build on existing employee performance How job performance will be measured f. Identifying barriers to performance and removing them g. Refers to the total system of gathering information, the review and feedback to the individual, and storing information to improve organization + effectiveness “ D. Turacano, “How am I doing?” HR Magazine (1992). " Robert Bacal, Performance Management (McGraw-Hill, 1999). esete oy The primary goal of performance management is to improve organizationg, performance. But one must take note that performance appraisal is not performa, management. Evaluating performance is just one part of performance managemen, system. Why Measure Performance 1. Managers cannot manage and define what is expected and gives feedback ang recognition without defining the basis or performance measures. It alloy, management to specify what must be done and to combine feedback with goa) setting. - 2. On the part of the employee, he/she cannot improve on what he/she is suppose to do without the necessary data before and after to see if performance i, actually improving. 3. Creating high performance requires a definition of clear goals so you will know it when you see it. In addition, all high performers get there because they have a clear picture of where they are going. 4. Pay for performance requires metrics. If the organization will be giving pay based on performance, there is a need to have some way of knowing when the payout has been earned. Early Approaches to Performance Appraisal 1. Focusing on the employees’ past performance — this is more on managenient of results. 2. Focusing on the employees’ development — In here, results become the driving force for management development. These two approaches are not without difficulties that is why modern approaches to performance review takes a much more strategic posture to link personal development with organizational development and continuous improvement measures. Common Flaws Identified with Performance Review System Design® 1. Organizations limit performance review to make employees accountable for past endeavor. This takes the view that making people accountable for poof performance will automatically generate improvement. 2. ‘Tying performance review to employee salary review. This is trying to reinfor® the power af management to decide who are those entitled to receive increases showing who is boss, with the use of stick and carrot. These flaws point to the fact that companies must not only look at performanc? review as the mechanical administration of personnel evaluation forms. evaluator must be able to inform an employee that his/her performance is les than the required standard and less than what he/she is capable of giving, or ths" he/she has an attitude or behavior problem that is limiting his/her contributio” or adversely affecting his/her colleagues, This is why there is a need to focus ” performance management rather than just evaluating the employees’ performan ® “9 Common Errors in Performance Appraisals,” eHow money, http://www.ehow.com/ list_6499538_9-common-errors-performance-appraisals. html 84Managing performance is done with the employee because it benefits the employee, the manager, and the organization, and is best done in a collaborative, cooperative way. Objectives of Performance Appraisal 1. It provides information upon which promotion, transfer, demotion, layoff, discharge, and salary decisions can be made. It could justify reward decisions including merit increases, promotions, and other forms of rewards. 2. Itprovides an opportunity for the supervisor and his/her subordinates to review and identify their strengths and weaknesses or work-related behavior. This in turn allows both of them to develop a plan for correcting any deficiencies that the appraisal might have unearthed or reinforce the things the subordinate does right. This feedback clarifies for employees the job expectations held by theif supervisor. 3. It forms the basis in identifying the training needs of employees as well as evaluating the success of training, thus, development initiatives are not based on opinions but rather on results. . It helps in the firm’s career planning process because it provides a good opportunity to review the person's career plans in light of his/her exhibited strengths and weaknesses. Thus, it could produce evidence and/or opportunity for career progression. 5. It allows easy monitoring and supervision. 6. It helps evaluate the individual's share relative to the team’s contribution in achieving the organization’s goal. . It provides information to evaluate effectiveness of selection and placement decisions. Perk Criteri Deciding what to evaluate reflects the personal values of the individuals who design the evaluation system. Most people agree that quality and quantity of Performance are important dimensions to evaluate but there is less agreement about traits such as appearance, initiative, enthusiasm, and the like. Three criteria are suggested here to be included in the construction of performance evaluation: 1. Relevance ~ relevant performance dimensi ‘ions are determined by the duties and responsibilities contained in the job description. . Reliability — produced consistent and repeatable evaluation, 3. Freedom from contamination — should measure each employee's Performance without being contaminated by factors that an employee cannot control such as economic conditions, material shortage, or poor equipment.| Indicators or Matrix that Can Help Measure Employee Performances According to Hakala (2008), a manager or supervisor can use the followin indicators of performance to appraise subordinates. 4. Quantity: The number of units produce objective indicator of performance. Quality: The percentage of work output that must be redone or is rej one indicator of quality. In a sales environment, the percentay converted to sales is an indicator of salesmanship quality. 3. Timeliness: How fast work is performed; it might be the number of Unity produced per hour. 4. Cost-effectiveness: The cost of work performed should be used as a measure of performance only if the employee has some degree of control over costs, 5 Absenteeism/Tardiness: An employee is obviously not performing whey he or she is not at work. es Creativity: Supervisors and employees should kee] examples and attempt to quantify them. Adherence to Policy: This may seem to be the opposite of creativity, by it is merely a boundary on creativity. Deviations from policy indicate an employee whose performance goals are not well-aligned with those of the company. | processed, OF SOld i8 gong 2 lected, We of inquinie, p track of creative work Gossiping and other Personal Habits: They may not seem performance. related to the employee, but some personal habits, like gossiping or rumor mongering, can disrupt job performance and interfere with the performance of others. The specific behaviors should be defined, and goals should be set for reducing their frequency. Personal Appearance/Grooming: Most people know how to dress for work, but in many organizations, there is at least one employee who needs to be told. Examples of inappropriate appearance and grooming should be spelled out, their effects upon the employee’s performance and that of others explained, and corrective actions defined. Who Should Evaluate Performance? 1, Manager/Supervisor Appraisal -' Hierarchical arrangement of formal authority in most organizations gives the supervisor or the manager legitimate authority to evaluate subordinates. They are in the best position to obser? employees, and they should have a better understanding of the job beins performed. Self-appraisal - The employee appraises his or her own performance, i® many cases comparing the self-appraisal to management's review. Ofte? self-appraisals can highlight discrepancies between what the employee management think are important performance factors and provide mu! feedback for meaningful adjustment of expectations. ® David Hakal features/16. so! 16 Ways to Measure Performance (February 19, 2008), http:/iwww.hrworld © \y8-measure-performance-021908 86‘This is considered valuable for personal development and the identification of training needs, but not for evaluative purposes. This is useful when combined with other forms of appraisal. Subordinates Appraisal — Provides unique information because subordinates know better than anyone else whether leadership is good or bad. It makes the workplace more democratic and responsive to human needs and it increases the flow of communication as well. e Subordinates can also provide useful insights in the appraisal of their seniors, particularly in identifying developmental needs. Usually, such inputs are used by companies which have instituted 360-degree appraisal for their middle and senior-level managers.“ 4, Peer Appraisal — Research on peer evaluation has found to be predictive of success and yielded good reliability and validity. This method is based on the assumption that coworkers are most familiar with an employee's performance. Peer appraisals are often effective at focusing an employee's attention on undesirable behaviors and motivating change. This method often places greater emphasis on team performance and team rewards. : 5. Customer/Supplier — Customers, vendors, or suppliers can be potential evaluators. This kind of appraisal would be more relevant for service-oriented companies such as banks, where the inputs provided by external customers can be useful for staffing. 6. Team Appraisal ~ Similar to peer appraisal in that members of a team, who may hold different positions, are asked to appraise each other’s work and work styles. This approach assumes that the team’s objectives and each member's expected contribution have been clearly defined. 7. Assessment Center —The employee is appraised by professional assessors who may evaluate simtulated or actual work activities. Objectivity is one advantage of assessment centers, which produce reviews that are not clouded by personal relationships with employees. 8. 360-Degree or “Full-Circle” Appraisal ~ The employee's performance is appraised by everyone with whom he or she interacts, including matiagers, peers, customers, and members of other departments. This is the most comprehensive and expensive way to measure performance, and it is generally reserved for key employees. Remember, performance appraisal program can never be perfect. It would depend much on the evaluator or on the employee, to be effective and responsive in meeting the dynamic and changing organizational and employee needs, oe ; 3860-Degree or Full-Circle Appraisal, http://www scribd,com/doc/58392116/15/Degree-or-Full- « Citele-Appraisal Alternative Performance Reviews, http://www toolpack.com/performance html 87REWARDING EXEMPLARY PERFORMANCE ‘CORRECTING SUBSTANDARD PERFORMANCE Figure 7. Process Involved in Performance Evaluation Sources of Data in Appraisal 1. Production Data — evaluate the degree of dependable task accomplishment by measuring quantity and quality of performance. Examples include number cf units produced per hour, peso volume of sales, profit, return on investment, and the like. These are considered the best measures of performance because they are directly observable and they can be counted. 2. Personnel Data — type of information found in an individual's personnel files. Examples include absenteeism, tardiness, training program completed, and critical incidents. Except for critical incidents, these data are directly observable and can be reliably measured. 3, Judgment of Others — Many of the spontaneous and innovative behaviors that are important to organizational effectiveness can only be assessed by the judgments of others and ought to be obtained in every evaluation. Performance Appraisal Methods Multiple Person Evaluation Methods 1. Ranking Method ~ ranking the employee from the most efficient to the less capable on each trait or quality to be used in judging the employees’ pet or just simply ranking the employee from best to worst. This can be very difficult to do if the supervisor number of subordinates and many traits are involved. Ranking system has also the potential to cause unwanted side effect* ked to rank a laré? “ Performance Appraisal Methods (March 2010), http://www.1 i oe 3 )), http: /humanresources, hrvinet.com/Because ranking method compares colleagues in a very real sense, it pushes people to compete with each other. It can encourage people to work harder to come out on top but it can also encourage people to passively interfere with the work of others. 2. Paired comparison method ~ consists of asking an evaluator to consider only two individuals at one time and to decide who is better. Then another pair of es is presented to the evaluator for another evaluation. An employee's position in the final ranking is determined by the number of times that employee is chosen over the other employees. With large number of subordinates, this can be very tedious. A supervisor with 20 employees to evaluate will have to process 190 comparisons. ‘Note: + means “better than’; - means “worse than.” For each chart, add up the number of +'s in ‘each column to get the highest-ranked employee. For the trait “Quality of Work" Employee Rated ‘As compared to: Elsa Tina Ding Phil ‘Au + o Sy Eisa ranks highest here. Figure 8. Ranking Employees by Paired Comparison Method 3. Forced distribution — Forced ranking is a method of performance appraisal that ranks employees through forced distribution. The rater is asked to rate employees in some fixed distribution of categories such as superior, above average, average, below average, and poor. It assumes that the relative percentages would be approximately 10%, 20%, 40%, 20%, and 10% respectively. This system is based on social science statistics of the normal curve. which presents a bell-shaped graph where one end of the scale representa the best job performance and the other end represents the worst performance. The top-ranked employees are considered “high-potential” em, and often targeted for a more rapid career and pl td artis Shermiardone In contrast, those ranked at the bottom are denied of bonuses and Pay increases. They may be given a probationary period to improve their performance.Individual Evaluation Methods \ 1 2 Critical Incident Method ‘The critical incident for performance appraisal is a method in which manager writes down positive and negative performance behavior of emp! throughout the performance period. This requires recording of events tha represent either effective or ineffective performance for each employee being rated. An incident is critical when it illustrates what the employee has done, failed to do. At the end of the rating period, these recorded critical incidents an, used in the evaluation of the workers’ performance. Recorded incidents can help avoid many common rating errors and help facilitate discussions about how an employee's performance can be improved, Its main drawback is that the rater is required to jot down incidents regularly which can be burdensome and time consuming. To add, there is danger thet negative incidents may be more noticeable than positive incidents. Checklist and Weighted Checklist Method Checklist is a set of objectives or descriptive statements. Ifthe rater believes that the employee possesses a trait listed, the rater checks the item; if not, the rater leaves it blank. This method describes a performance appraisal method where the rater, familiar with the jobs being evaluated, prepares a large list of descriptive statements about effective and ineffective behavior on jobs. The employee's evaluation is the sum of the scores (weights) on the items checked. Drawback of this method is that it is time consuming to prepare the questions or checklist for each job category and the checklist questions can have different meanings for different raters. ‘Check all statements that are accurate descriptions of the behavior and activities of for the period Nemes Sesto S e e Check as many or as few as applied. Weights, __ Isa decisive decision-maker 10.0 ___ Seems to be focused in addressing pressing problems a7 __Is concemed about the quality of work completed 10.0 ___ Reviews carefully the work of mechanics who report to him 14 ___Tactfully corrects poor-quality work of mechanics, 65 ___ Is able to delegate a job to subordinate mechanics 63 ___ Is easy to work with 82 __Is able to clearly communicate guidelines for improving work 80 ____ Is sensitive to the needs of fellow workers 79 __ Gives credit freely to those who deserve recognition 64 __ Works well with people outside the work team 69 Note: Weights are not included on the actual weighted checklist to be completed. The ROE checked are added together to derive an overall score. A higher soore indicates better performance. (Adapted with modifications from “Performance Appraisal: Mt Unnerving Yet Useful Process” by Robert M. Glen, ‘Public Personnel Management Journal, Spring 1990) Figure 9. Weighted Checklist for a Lead Automotive Mechanic PositionWe ee ee GR ds | BO ee ye 3. Graphic Rating Scales + This is the oldest and most widely used method for performance appraisal. + The scales may specify five points, so a factor such as job knowledge might be rated from 1 (poorly informed about work duties) to 5 (has complete mastery of all phases of the job). Using this technique, the rater is presented with a set of traits such as those shown in Figure 10. The rater is asked to rate employees on each of the characteristics listed. Its main advantage is that the method allows quantitative comparison. Employee Name Position Title. 7 Department Reason forReview // Annual 11 Promotion 1 Merit 11 End of Probation Period —// Unsatisfactory Performance // Others Date of Last Appraisal: ‘Scheduled Appraisal Date: (Adapted with modification from “Link Job Descriptions to Performance Appraisals” by James Buford et al., Personnel Journal) Instructions: Carefully evaluate employee's work performance in relation to current job requirements. Check rating box to indicate the employee's performance. Indicate NA if not applicable. Assign points for each rating within the scale and indicate in the corresponding point box. Points will be totaled and averaged for an overall performance score. Rating Identification 0 - Outstanding Performance is exceptional in all areas and is recognizable as being far superior to others. (100-90) V-Very Good Results clearly exceed most position requirements. Performance is of high quality and is achieved on a consistent basis. (89-80) G-Good Competent and dependable level of performance. Meets performance standards of the job. (79-70) 1— improvement Needed Performance is deficient in certain areas. improvement is necessary. (69-60) U-Unsatisfactory Results are generally unacceptable and require immediate improvement. (Below 60) Sample items on a Graphic Rating Scale Evaluation Form General Factors @. Quality - the accuracy, thoroughness, and acceptability of work performed. () Does not meet the minimum acceptable quality requirements, with frequent errors () Careless, often makes errors () Quality of work is satisfactory. () Quality is above standard, exact, and precise most of the time. ()_ Produced item is of superior quality 91Productivity ~ the quantity and efficiency or work produced in a specified period of time, () Does not meet the minimum requirements () Does just enough to be get by (.) Volume of work is satisfactory () Very industrious, does more than what is required () Hes @ superior production record ©. Job knowledge - the practical and technical skils and information needed to perform the om () Is poorty informed about work assignment () Lacks knowledge of some phases of the job (.) Is moderately informed and can answer most questions about the job (.) Understands all phases of the job (.) Has complete mastery of all phases of the job | 4. Dependability - the ability to do the required jobs well with a minimum supervision, | (). Requires close supervision, unreliable 4 | (.) Sometimes requires prompting | () Usually completes necessary tasks with reasonable promptness | () Requires little supervision () Very reliable, with litle or no supervision required | €. Attendance - measures tardiness and absenteeism of employees. | () Isoffen absent without any valid reason () Sometimes absent or late (.) Usually present and on time (.) With regular attendance (.) Always present, volunteers for overtime when needed Figure 10. Performance Appraisal Form Using Graphic Rating Scale This method permits commenting on the employee's unique characteristics It is more effective when specific examples of employee behavior are citel along with objective facts supported by any quantitative information. Its mas drawback is that it is time consuming when describing all of the individual’ characteristics and that it may be unfair since the quality may depend upos the writing skills of the rater. A busy rater may write the essay hurriedly with properly assessing the actual performance of the rate. . Behaviorally Anchored Rating Scales (BARS) This method is used to describe a performance rating that is focused specific behaviors or sets as indicators of effective or ineffective performance * is 2 combination of the rating scale and critical incident techniques of mplos® performance evaluation. This method evaluates observable behavior rather than subject’ perceptions but it requires a lot of time and effort to develop the scales: is designed to assess specific behavior required to successfully perform *? ie ‘The assumption is that these functional behaviors will result in effective performance.‘Always responds appropriately, even with the most irate customers; continually presents a friendly, helpful image to the Outside public ‘Sometimes uses poor grammar, but usually responds well Does the job well but does not go out of the way to be helpful Occasionally becomes flustered with irate customers and has difficulty solving problems or thinking clearly Responds matter-of-factly; performs in a mechanical and disinterested way acts courteously when others are nice, but responds Poorly and loses composure when others get nasty Occasionally acts crudely, abrasively, or offensively when responding to others even when there is no apparent Provocation or reason Figure 11. Behaviorally Anchored Rating Scale: Contact with Customers or Clients 5 Management by Objective (MBO) MBO is a process in which managers and their subordinates set objectives for the employee to achieve within a specific rating period. MBO focuses attention on what must be accomplished (goals) rather than how it is accomplished (methods). Reward is given based on the result or output. MBO allows easy linking of individual objectives to work unit objectives. It reduces the likelihood of disagreement during appraisal meetings if standards and targets were written well during the performance planning process and considering employees were involved in the preparation and identification of targeted outcomes. For MBO to be effective, it must be SMART—the objective must be specific, measurable, attainable, results-oriented, and time-bound. 6 Multi-rater Assessment or the 360-degree Performance Feedback The 360-degree feedback is a system or process in which employees receive confidential, anonymous feedback from people who work around them, their immediate superior, peers, customers, or suppliers. ‘Traditionally, companies evaluate employee performance by relying almost exclusively on the supervisor's ratings. ‘The strength of this method lies on the fact that more people are involved in the evaluation instead of just relying on the supervisor, hence, bias is prevented. Possible advantages of this method: a. Provides evaluation from different stakeholders which may help reduce performance appraisal errors and biases b. Increases employee and possibly customer involvement c. Increases management responsiveness to employee concerns d. Its statistical record provides good documentation for possible legal action. 93oy Seven Tips for Creating a World-class Appraisal System*” L 2. Design the form first. The appraisal form is a lightning rod that will attr... everyone's attention. Design the form early and get a lot of feedback on it, Build your company’s values into your form. Performance appraisal i, , means, not an end. Values become real only when people are held accountahy, for living up to them. . Assure ongoing communication during development. Circulate dr, and invite users to make recommendations. Keep the development visible through announcements and house-organ bulletins. Use surveys, ang request suggestions. Remember the cardinal principle that people suppor, what they help create. . Train all appraisers. Performance appraisal (PA) requires a multitude o¢ skills-behavioral observation and discrimination, goal-setting, developi people, confronting unacceptable performance, persuading, problem-solving, and planning. Unless appraiser training is universal and comprehensive, the program would not produce much. . Orient all appraises. The program's purposes and procedures must be explained in advance to all who will be affected by it. Specific training should be provided if the performance management procedure requires self-appraisal, multi-rater assessment, upward appraisal, or individual development planning. ;. Use the results. If the results of the performance appraisal are not visibly used in making promotion, salary changes, employee movement, training, and termination decisions, people will decide that it is merely an exercise and therefore is just a waste of time. |. Monitor and revise the program. Audit the quality of appraisals, the extent to which the system is being used, and the extent to which the original objectives have been met. Provide feedback to management, appraisers, and appraises. Actively seek and incorporate suggestions for improvement. Train new appraisers as they are appointed to supervisory positions. Performance Appraisal Problems and Solutions*® L & Zigon Performance Gro Adapted from Managir Halo Effect _ The Problem: A manager or supervisor allows a general favorable impression of an employee to influence his or her judgment on each separate factor in the performance appraisal process, An unfriendly employee will ofte? be rated unsatisfactory for all traits rather than jus i ing © t it for the trait ALAN gs interpersonal relation See aay: The Solution: The other factors, factors in an avoiding it, rater should consider each factor independently of #!! rather than rating the employee at the same level on all (or mos!) appraisal. Being aware of this problem is a major step tow up (2007), www zigonpert.com 2003, p. 19-24 ing the Staff of the Local Church by David R. Pollock, Alston-Kline, Ine 942. Recency Effect The Problem: Recent events tend to have an unusually strong influence on performance evaluation. Outstanding contribution or untimely mistake just prior to a performance review colors the manager's perception of the employee's performance for the entire appraisal period. (A similar pitfall, the unforgettable effect, occurs when an employee does something so extraordinary, either positively or negatively, that its impressions last for a Jong time, to the advantage or disadvantage of the employee.) The Solution: An alert manager compensates for lack of perspective by careful documentation and to make refinements in the design of the appraisal method, as well as improving the skills of the raters. 3. Previous Performance Bias The Problem: The employee who has performed well in the distant past is assumed to be acceptable in the recent past also. Previous good work tends to carry over into the new period being appraised. The Solution: Once again, observation and documentation of the employee's performance will give an accurate account of the performance period under scrutiny. 4. Leniency/Harshness/Strictness Error The Problem: Some managers tend to give mostly favorable ratings while others tend to evaluate the same performance levels unfavorably. This error is usually committed when managers feel uncomfortable about communicating negative feedback or do not want to hurt the employee's feelings. The Solution: Understanding the constructive purposes of performance appraisal and acquiring effective skills in giving negative feedback should reduce the tendency to commit this error. Raters can assess their own harsh and lenient rating tendencies by examining or distributing Fatings forcing a normal distribution to avoid this error. 5. Central Tendency The Problem: Central tendency occurs when a manager rates all employees as average by choosing the middle rating. The central tendency closes the door to an employee's growth and improvement on a job, because no strengths or weaknesses are identified. The Solution: Ranking employees can avoid this error because all empl must be ranked and, thus, cannot all be rated average. mployees Carelessness The Problem: Managers make quick guesses based on first i i an employee's performance. rst impressions of The Solution: Managers commit significant tit and forming judgments based on their observ; often ‘on performance rating, and ‘ill-consi unreliable information and detract from the orga: ime observing staff members ations. Major decisions are dered ratings will contri nization’s goals, teaay 7. Bias The Problem: Individual differences among ratees in terms of characteris, like age, race, sex, and religious and political affiliations. Evaluations a dependent on the rater’s personal preferences, prejudices, and biases. The Tate, who has a biased or prejudiced attitude toward certain groups of people look, for behavior in these groups that confirms his or her prejudices. The Solution: When rating employees, the manager must consider the ga relevant behaviors for all employees supervised. Individual differences ang other nonperformance factors should not affect performance appraisal Tatings, Careful observation, description, and documentation of actual performance oy, an ongoing basis reduce the tendency for bias by emphasizing job performance over a period of time. Feedback or Appraisal Interview Z This is an interview in which the supervisor and subordinates review the appraisal and make plans to remedy deficiencies and reinforce strengths. It provides an opportunity to identify the subordinate’s feelings more thoroughly and thus improve communication between supervisor and the employee. Annual discussions of performance should include: 1. review of overall progress; 2. discussion of problems that were encountered; 3. discussion of sources of ineffective performance; 4. agreement about how performance can be improved; 5. discussions on how current performance fits with long-range career goals; . specific action plans for the comi ; : ion tenes ' coming year and how to reach short and long: 2Case Study _____—— Why the Need to Change Artermio was appointed CEO of Rafol’s Enterprises upon the death of his father. ‘The company went public under the leadership of Artemio and had to adapt to being open and transparent to outside investors. There were pressures from the shareholders to reduce costs and increase profits. In response, Artemio implemented cost-cutting measures including downsizing by means of enforcing early retirement of employees who he felt could not cope in the move to digitize the operation of the business. ‘As expected, most of the employees were not happy and this affected the morale of their employees. Artemio sought the assistance of Ely Buenaobra, the VP of HR. Ely suggested a comprehensive program wherein it is not just the managers who would be evaluated based on achieving results but even the employees by means of demonstrating to their employees that their performance affects company results. This in turn will show to the shareholders that the company’s primary objective is to increase performance. Inspired by the case entitled “A'Time for Change” from the book Human Resource Management by Wendell French, Houghton Mifflin Company, 2007. 1. Do you agree with the proposal of Ely? Explain your answer. 2. If you were an employee of Rafol’s Enterprises, how would you react to the new evaluation system that will measure your performance vis-a-vis predetermined outcomes or objectives? 3. Who should be involved in developing employee outcomes/objectives?Changes in employment status are bound to take place during the period of employment. There is a continuous movement of employees in the form of promotion, transfer, demotion, or separation. This movement is the function of placement wherein the objective is to find or assign the right person to the right job. A ehange in employment status is effected by a personnel action generated by the HR department upon receipt of a written request from an authorized representative of a department expressing the intended change in employment status. Promotion It involves the reassignment of an employee to a higher job position. This also refers to the upward or vertical movement of employees in an organization from lower level jobs to higher level jobs involving increases in duties and responsibilities, higher pay, and privileges. Promotion serves as encouragement and inspiration to other employees to exert their maximum effort. This can also help instill loyalty to the firm. Approaches to Recruit Employees for Promotion 1. Closed promotion system — the responsibility of the supervisor to identify promotable employees for the job to be filled. : 2 Open promotion system also known as job posting — enhance participation and the achievement of equal opportunity goals. Criteria Used in Promoting Employees 1. Seniority — length of service a. Straight seniority ~ the length of service of an employee is the sole basis for determining who gets the promotion. b. Qualified seniority ~ the more competent employee as compared to another employee with longer service will be the one promoted. 2 Current and past performance ~ promotion is based on previous job performance and evaluation, “Unofficial” Promotion Criteria 1. Personal characteristic 2. Nepotism — showing of favoritism or patronage to relatives 3. Social factors/friendship 101a sn eomember that when an employee accepts a job, he/she does not expect tp in the same job throughout his/her working life. It is normal for all employees”? expect promotion in exchange for a job well done. As pointed out by Herzberg” Motivation Hygiene Theory (F. Herzberg et al., The Motivation to Work), g..** recognition related to the job can create high levels of motivation. Biving Demotion This is the reassignment of an employee to a lower job involving fewer and responsibilities. It is also the movement of an employee to a less important ob from a higher-level job in the organization. It may not involve a reduction in is but a reduction in status or privileges. As a general rule, demotion should be cautiously resorted to for it badly individual and group morale and productivity. The alternative to demotion a be re-training or reorientation on the job and attitude toward work, or as a last resort, termination of employment if no improvement is achieved. Reasons behind Demotion 1. Reorganization, company merger, or business reverses resulting to fewer jobs, forcing some employees to accept demotion 2. Inability of employees to perform their job based on acceptable standards 3. Asa form of disciplinary action ot a way to handle disciplinary problems, als viewed as a routine form of punishment for wrongdoing 4, The tool used to inform the employee concerned that he or she is beginning t» be a “liability” rather than an “asset” to the organization Transfer This is the reassignment of an employee to a job with similar pay, status, duties, and responsibilities or to another work shift, or from one unit to another in the same company just like being an invoice clerk to a sales clerk. The right transfer an employee is part of management's inherent power or prerogatives. Reasons for Transfer . Due to job dissatisfaction . In conflict with supervisor or coworkers For employee's convenience » Organizational needs may require transfer due to business expansio™ retrenchment, erroneous placement, or to meet departmental requireme?* during peak season, 5. For an employee to be better suited or adjusted to the job (remedial transfet) Employee Separation » Different kinds of separation occur depending on whether the employee OT employer decides to terminate the employment relationship. Roepe 102 ‘(eeeTermination of Employment in the Philippines” Terminating an employee in the Philippines is a complex process, especially if the employee subject for termination is already a regular employee. The following are governing laws regarding separation from the service. Governing Laws Regarding Separation from the Service®? 1, Art. 279. Security of tenure. In cases of regular employment, the employer shall not terminate the services of an employee except for a just cause or authorize cause and only after due process of law. An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full back wages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his compensation was withheld from him up to the time of his actual reinstatement." 2, Art. 282. Termination by employer (Dismissal) (See chapter about employee discipline.) An employer may terminate an employment for any of the following causes: a. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work; b. Gross and habitual neglect by the employee of his duties; c. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative; 4. Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representatives; and ©. Other causes analogous to the foregoing. 3. Art. 283, Closure of Establishment and Reduction of Personnel/Layoffs The employer may also terminate the employment of any employee due to the following authorized causes: a. Installation of labor-saving devices; b. Redundancy; ¢. Retrenchment to prevent losses; and . Closure or cessation of business Factors Behind Downsizing Leading to Layoff __ Management as a temporary measure during periods of business recession, industrial depression, or seasonal fluctuation, resorts to layoff or. downsizing. The recent trends toward downsizing leading to massive layoffs h: triggered by three factors: pected = “ Termination of Employment in the Philippines, http://www kittelsoncas nit « “™ployment/termination-of-employment Po.cony/phitippines labor. ; Book VI of the Labor Code of the Philippines ‘As amended by Section 34, Republic Act No. 6715, (March 21, 1989). 103a. Decline or crisis in the firm - there is a decrease in the demand for th, firms’ products or services due to a recession in business climate nj increased international competition." b. Technological advances — enabling many companies to produce mo, with fewer people. c. Organizational restructuring — modification of the firm’s structure » become less hierarchical by cutting out the layer of middle managemeny ‘To help employees who have lost their jobs, employers can provide Service such as outplacement or helping employees find a new job, or Providing relocation assistance and family counseling. ‘The following are some of the alternatives to layoff: Freeze hiring . Restrict overtime Re-train/redeploy . Switch to job sharing Use unpaid vacations Use a shorter workweek . Use pay reductions Fampas sp . Use sabbaticals Implement early retirement programs Separation Pay In authorized cause terminations, separation pay is the amount given to an employee terminated due to retrenchment, closure or cessation of business, or incurable disease. The employee is entitled to receive the equivalent of one- month pay or one-half month pay, whichever is higher, for every year of service. In just cause terminations, separation pay is also the amount given to employees who have been dismissed without just cause and could no longer be reinstated. 4, Art, 284, Disease as ground for termination. An employer may terminsté the services of an employee who has been found to be suffering from any diseas and whose continued employment is prohibited by law or is prejudicial to bis health as well as to the health of his co-employees. 5.” Art. 285. Termination by employee (Resignation) * The Philippine Constitution says no involuntary servitude in any fom shall exist except as punishment for a crime whereof the party shall ha been duly convicted, In view of the prohibition on involuntary ser#tvs, an employee is given the right to resign under Art, 285 of the Labor This provision recognizes two kinds of resignation — without cause 8 cause, © Department of Labor and Employment Bureau of Labor and Employment Statistics, http!" bles.dole.gov.ph/ 104+ If the resignation is without cause, the employee is required to give a 30- day advance written notice to the employer, to enable the employer to look for a replacement to prevent work disruption. If the employee fails to give @ written notice, he or she runs the risk of incurring liability for damages. An employee may terminate, without just cause, the employee-employer relationship by serving a written notice (resignation letter) on the employer at least one (1) month in advance. The employer upon whom no such notice was served may hold the employee liable for damages. + Anemployee may put an end to the relationship without serving any notice on the employer for any of the following causes: a. Serious insult by the employer or his representative on the honor and person of the employee; b. Inhuman and unbearable treatment accorded the employee by the employer or his representative; ¢. Commission of a crime or offense by the employer or his representative against the person of the employee or any of the immediate members of his family; and d. Other causes analogous to any of the foregoing. Article 280. SECTION 9. Termination pay." (a) An employee shall be entitled to termination pay equivalent to at least one month’s salary for every year of service, a fraction of at least six (6) months being considered as one whole year, in case of termination of his employment due to the installation of labor-saving devices or redundancy. SECTION 10. Basis of termination pay. The computation of the termination pay of an employee as ‘provided herein shall be based on his latest salary rate, unless the same was reduced by the employer to defeat the intention of the Code, in which case the basis of computation shall be the rate before its deduction. 6. Art. 287. Retirement. Any employee may be retired upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract. In the absence of a retirement plan or agreement providing for retirement benefits of employees in the establishment, an employee upon reaching the age of sixty (60) years or more, but not beyond sixty-five (65) years which is the compulsory retirement age, who has served at least five (6) years, may retire and shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year. ee ih Book VI of the Omnibus Rules Implementing The Labor Code 10SY Article 280. SECTION 14. Retirement benefits." (a) An employee is retired pursuant to a bona-fide retirement plan or in accordance with applicable individual or collective agreement or established employer poy, shall be entitled to all the retirement benefits provided therein or to termination pay equivalent to at least one-half month salary for every year of sery whichever is higher, a fraction of at least six (6) months being considered 5, one whole year. For the purpose of computing retirement pay, “one-half month salary” shay include all of the following: a. Fifteen (15) days salary based on the latest salary rate; b. Cash equivalent of 5 days service incentive leave; and ¢. One-twelfth (1/12) of the thirteenth-month pay. The computation should be as follows: (1/12 x 365/12) = 0.083 x 30.41 = 2.52 Thus, “one-half month salary” is equivalent to 22.5 days. Minimum retirement = daily rate x 22.5 days x number of years in service ‘The retirement benefits under R.A. 7641 and R.A. 8558 are separate ani distinct from those granted by the Social Security System. Under the law, upon optional or compulsory retirement, the employee is also entitled to the proportionate thirteenth-month pay for the calendar year and to the cash equivalent of accrued leave benefits. Contractual Employees ‘Those hired on a temporary basis, that is, for a “term” or “fixed period” are not regular employees, but are “contractual employees.” Consequently, there is illegal dismissal when their services are terminated by reason of the expiration of their contracts. Lack of notice of termination is of no consequence, because # contract for employment for a definite period terminates by its own term at the end of such period. dob Service/Labor Contracting Job or service contracting exists when a principal employer enters # agreement with a contractor or subcontractor for the latter to perform a jo?“ service. The contractor or subcontractor supplies the employees who will perfor ‘such particular job or service, The most common example of this is the engage" of a security agency to secure the premises of the company. Labor contracting, on the other hand, tefers to a situation where the princi"! employer concludes an agreement with a manpower agency for the supPlY manpower. The essential requisites for a valid labor contracting are: (@) contractor must be engaged in business of supplying manpower; and (b) he ™ have substantial capital. © Tid. % Art, 106 of the Labor Code of the Philippines 106Labor-Only Contracting “Labor-only contracting” is prohibited by law. There is labor-only contracting where: (a) the contractor or subcontractor merely recruits, supplies, or places workers to perform a job, work, or service for a principal; (b) he does not have substantial capital or investment to actually perform the job, work, or service under its own account and responsibility; and (c) the employees recruited, supplied. or placed by such contractor or subcontractor are performing activities which are directly related to the main business of the principal.” Types of Employment Regular employment is a type of employment where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer except where the employment has been fixed for a specific project or undertaking, the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season. Probationary employment refers to the services of an employee who has been engaged on probationary basis. He/she may be terminated only for a just cause or when authorized by existing laws, or when he/she fails to qualify as a regular employee in accordance with reasonable standards prescribed by the employer. The probationary employment period shall not exceed six (6) months reckoned from the date the employee actually started working. Part-time employment refers to workers employed to render work for a period less than the normal eight-hour working day or those who work less than the normal six working days in a week. This type of worker often maintains more than one employer to earn more. Commission-paid employment is when workers are paid depending on the income they brought in for their employer. They earn a percentage of the income they derived for their employer. Casual employment happens when employees are hired for a particular Period or season. They may be hired as temporary replacements of on-leave regular employees or are hired during peak seasons when more workers are needed. Contractual employment is the state when workers are employed at any time but for a definite period not exceeding six (6) months. This type of employment is the most commonly used by the employers in the Philippines today in an effort to achieve more flexible work force as a key factor for survival in the situation of heightened competition. Te “* Art. 106 of the Labor Code of the Philippines and Department Order No. 10 (April 1997)a Case Study Employee Layoffs at the University Medical Center The University Medical Center is a medium-sized, 300-bed capacity hospital in Dasmarifias City. The facilities have grown gradually over the years and considered one of the largest in the city. Although it is unionized, it has never experienced an employee layoff since its inception. Sister Lallaine Buenaobra, the Chief Executive Officer of the hospital for eight years, presented a rather bleak financial picture during the most recent quarterly meeting of the board of directors or BOD. This, according to her, is the result of the declining occupancy rate brought about by:the opening of the biggest government hospital in the province. This has affected the income of the hospital posting a net loss in its latest income statement. Such declines have not been unusual for this industry because of increasing competition. So far, the only response to these changes has been a tightening of requirements for equipment and supply purchases. The projected deficit for the coming year is around P1,300,000.00 unless some additional revenues are identified or some additional savings found. The BOD's recommendation is employee layoffs, which according to the board is the only realistic alternative. They recommend laying off up to 25% of the hospital's employees. Melinda Dumeel, the HR director of the hospital was given the task toimplement the recommendation of the board. Inspired by the article about Banco Filipino employees protest against illegal layoff written by Ina Ableco Silverio in bulatlat.com Help Melinda and Sister Lallaine solve this problem by following the steps: 1. State the main problem of the hospital. 2, State the different areas of consideration following the guide below. Strengths of the hospital: Weaknesses of the hospital: Opportunities:‘Threate: |. State your recommendations based on your ACA. . Provide aconclusion/detailed action plan to implement your recommendation using the guide below.