Once employees are hired, the organization needs to ensure that they are performing well. It is the human resource manager’s job to train, motivate, appraise and see that employees are compensated fairly.
1- Training is a continual process of providing employees with skills and knowledge they need to perform at a high level. Training can involve the changing of skills, knowledge, attitudes, or behavior. It may mean changing what employees know, how they work, their attitudes toward their work, or their interaction with their coworkers or superior.
Training needs analysis is a systematic analysis of the specific training activities the organization requires to achieve its objectives:
• Organizational analysis: From an overall organizational perspective, the firm’s strategic mission, goals, and corporate plans are studied, along with the results of human resource planning.
• Task analysis: The next step of training needs analysis focuses on the tasks required to achieve organizational goals. Job descriptions are important data sources for this analysis level.
• Person analysis: Determining individual training needs is the last step.
On-the-job-training (OJT) refers to new or inexperienced employees learning through observing peers or managers performing the job and trying to imitate their behavior.
Off-the-job-training takes place at locations away from the work site. This approach offers a controlled environment and allows focused study without interruptions. Conferences, classroom groups, mobile learning, audiovisual techniques, lectures, computer-based training and internet-based training are some of the techniques for off-the-job-training.
2- Performance Appraisal: Organizations need to evaluate employees’ performance and let them know how well they have performed on established goals. Performance appraisal can be defined as a process of determining and communicating to an employee how he or she is performing on the job and establishing a plan of improvement.
// 360-degree feedback performance is an appraisal system in which information is gathered from top management, supervisors, peers, subordinates, and customers.
// Performance appraisal process:
a) Establishing performance standards (setting targets, determining level of competence)
b) Communicating standards and expectations
c) Measuring the actual performance: Performance appraisal can be employed by trait appraisal instruments, behavioral appraisal instruments, and behavioral anchored rating scales.
Trait appraisal instruments evaluate employees based on characteristics that tend to be consistent and enduring, such as decisiveness, reliability, energy, and loyalty. Because people routinely make trait judgments about others, these instruments can be a powerful way of describing people. However, this type of appraisal instrument has several disadvantages such as ambiguity (what it takes to be loyal) and propensity for conscious or unconscious bias (the supervisor may feel that women are more emotional than men and therefore rate their traits differently). There is also some difficulty for defending legally, given that assessment of traits focuses attention on the person rather than on the job performance.
Behavioral appraisal instruments assess certain employee behaviors, such as coming to work on time, completing assignments within stipulated guidelines, and getting along with coworkers. A behavioral observation scale is one type of behavioral appraisal instruments in which various behaviors are listed and supervisors record the frequency of their occurrence.
Behavioral anchored rating scales assess the effectiveness of the employee’s performance using specific examples of good or bad behaviors at work, often referred to as critical incidents. The main advantage of this approach is that it is closely focused on concrete aspects of job performance. Employees may more clearly understand why they received a particular rating and what they need to do to improve. This approach is also easier to defend legally. However, developing this kind of instrument is quite expensive.
Outcome appraisal instruments measure workers’ performance results such as sales volume, number of units produced, number of satisfied customers, customer complaints, and meeting deadlines. The results and outcomes of work performance provide the most objective technique for collecting data for appraisal. Measurements can be taken at different points in time and comparisons made with objectives. Management by Objectives (MBO) is one strategy mostly used as an outcome-oriented approach. Under this strategy, employees and supervisors agree on a set of goals to be accomplished for a particular period. Performance is then assessed at the end of the period by comparing actual achievement against the agreed-upon goals.
// HR departments use the information collected through performance appraisals to make important decisions about HR functions. One of the most common uses of performance appraisals is for making administrative decisions relating to promotions, firings, layoffs, and merit pay increases. Performance appraisal information also provides needed input for determining both individual and organizational training and development needs. Another important use of performance appraisals is to encourage performance improvement. In this regard, performance appraisals communicate to employees how they are doing and suggest needed changes in behavior, attitude, skills or knowledge
d) Comparing to standards: The actual performance is compared to the desired or the standard performance.
e) Discussing results (Feedback)
f) Decision making
3- Compensations is the total of all rewards provided employees in return for work and services performed.
Internal equity is obtained when employees receive pay according to the relative value of their jobs within the same organization.
External equity occurs when a firm’s employees receive pay comparable to workers who perform similar jobs in other firms.
The basic compensation that an employee receives, usually as a wage or salary, is called base pay. Wage payment is directly calculated on the amount of time worked. A salary is a consistent payment made each period regardless of number of hours worked.
Pay incentives can be defined as compensation that rewards employees for the good performance. Pay incentives are often referred to as a variable pay because the amount is contingent on or varies according to changes in performance:
a) Individual incentive plans provide income above the base salary if the individual meets a specific performance standard. The most typical individual incentives are merit pay and bonus. Bonus is an individual performance incentive in the form of a special payment made over and above the employee’s salary. Merit salary systems link raises to performance levels in non-sales jobs. Under a merit pay plan, employees who receive merit increases have a sum of money added to their base salary. Those who perform better generally receive more merit pay. Executives commonly receive stock options as incentives.
b) Group incentives provide extra income to groups and teams for their performance above the standards. Each individual incentive option it is described above also can be used on a group basis; that is, two or more employees can be paid for their combined performance. Group incentives work better where employees’ tasks are interdependent and require competition.
c) Companywide incentives direct the efforts of all employees toward achieving overall organizational effectiveness. This type of incentive produces rewards for all employees based on organization-wide cost reduction or profit sharing. One of the best known companywide incentive systems is profit-sharing. Profit sharing provides employees to receive their regular compensation plus a share of the profits earned by the company. This system increases commitment and loyalty to the organization. On the other hand, employees often find it difficult to relate their efforts to the profit sharing bonus. Additionally, external environmental factors, such as economic conditions and competitors, may have a greater effect on the company’s profitability than any actions of the employees themselves.
d) A benefit is an indirect reward given to an employee or a group of employees as a part of organizational membership.
While employers provide most benefits voluntarily, some of the benefits are required by law. In Turkey, some benefits defined by the law are funeral, birth and marriage benefits, duty travel allowances, mobile duty compensation, paid vacations, severance pay, unemployment insurance, medical leave, dismissal pay or collective payment in the form of severance pay. Most of the companies also voluntarily provide health, life, and retirement benefits to employees. Some of the companies allow employees to use payroll deductions for buying company stocks at discounted prices. Retirement plans are also part of benefit packages that are available to many employees. In addition, organizations also provide non-financial voluntary services that are called fringe benefits. The purpose of such programs is to create a more convenient workplace and increase employee motivation. Some of the fringe benefit examples are recreational programs, eating facilities including company cafeterias, meal plans, housing and accommodations, company cars for managers, transport services between home and workplace, educational services, shopping discount tickets, and flexible working plans.