Human Resource

Management
Crispina Rafol Corpuz, Ph.D.

Presented by:
Joel Faderon Sarillo, MBA
 Part 3

Development of Human
Resources
(Training and Development)
 Chapter 4

Training and Development

of Employees
Introduction
• The final phase of the acquisition function is
induction or orientation. Immediately after induction
and usually combined with it, is the function of
developing the employees ability to do the job on
which he has been placed.
• The orientation and training of new employees and
the development of incumbent workforce are major
responsibilities of the HRD.
• Although training and development are similar, and
both are critical to the success of any business
organization, there are some important differences:
Training and Development
• Training – may be defined as an attempt to
improve performance by the attainment of
specific skills such as computing, typing,
encoding, designing, driving and so forth to do
the current job.
• The goal of training is to ensure that a number
of job skills will be performed at prescribed
quality levels by trained employees
Training and Development
• Development – this is more general than training
and refers to learning opportunities designed to
help employees grow. It provides employees
broader learning which may be utilized in a variety
of settings and for future jobs.
• As global competition increases, training programs
for management are becoming more educational
in scope. An example of development is the
problem of technical versus managerial expertise
allowing for promotion of both and not creating
dead end jobs. This is developing dual career paths
allowing both groups promotional and
development opportunities.
Employee Orientation
• This is a procedure for providing new employees
with basic background information about the firm,
its culture and the job.
• It involves starting the employee in the right
direction and it is similar to what sociologist call
socialization.
• Some companies, orientation involves familiarizing
new employees with the company’s cherished
goals and values, thus, beginning the process of
synthesizing the employees and company’s goals,
one big step toward winning and building
commitment to the firm.
Employee Orientation
• Proper orientation helps the employees get up to
speed much more quickly, thereby reducing the
cost associated with learning the job.
• Orientation can also help reduce anxiety. Any
employee, when put into new, strange situation, will
experience anxiety that can impede his ability to
learn the job.
• An effective orientation program has an immediate
and lasting impact on the new employee and can
make the difference between his success or failure.
Two Level of Orientation
• 1.) Organizational / 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 specific orientation –
topics about the department function and the
duties and responsibilities of the newly hired
employee, policies, procedures, rules and
regulation, tour of the department and introduction
to department employees. HR department and the
new employees immediate supervisor normally
share responsibility for orientation.
Objective of Training and
Development
• 1.) Improve the quality and quantity of
productivity. This can lead to an increase
in an individual’s skills in one or more
areas of expertise.
• 2.) Effectiveness in the present job. This
involves increasing an individuals
motivation to perform his job well.
• 3.) Create more favorable attitudes,
loyalty and cooperation.
Objective of Training and
Development
• 4.) Help employees in their personal
development and advancement by
helping them acquire additional
qualification for a better job.
• 5.) Help organization respond to
dynamic market conditions and
changing consumer demands.
• 6.) Satisfy human resource planning
requirements.
Use of Training to deal with
Competitive Challenges
• 1.) Global Challenge – having a borderless society,
cross cultural training is important to prepare
employees and their families for possible overseas
assignment.
• 2.) Quality Challenge – the emphasis on quality is
seen in the establishment of the Malcolm Baldrige
Quality awards and ISO 9000 quality standards.
• Baldrige awards was created in 1987 by US President
Reagan to recognize US companies quality
achievement and to publicize quality strategies.
• Categories and point values includes leadership,
information analysis, strategic planning, human
resource development and management, process
management, business results and customer focus and
satisfaction.
Use of Training to deal with
Competitive Challenges
• ISO 9000 is the name of a family of standards that
includes 20 requirements for dealing with issues such as
how to establish quality standards and document work
process. ISO 9001 is the most comprehensive since it
covers product and service design, while 9002 does
not include design and development.
• Training can help companies meet the quality
challenge by teaching employees statistical process
control and other quality related skills that they can use
to build quality into a product, rather than fix the
product or service after it has
Use of Training to deal with
Competitive Challenges
• High Performance Work System Challenge – new
technology causes changes in skills requirements
and work role 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.

• 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.
Training Process
• 1.) Training need Analysis/Need Assessment – it
refers to the process used to determine if training is
necessary. It identify specific job performance skills
needed to improve or correct performance
deficiencies and increase productivity. It refers to a
systematic, objective identification of training
needs.
• Training is needed when significant differences exist
between actual performance and standards.
Training Process
• 5 methods that can be used to gather needs
assessment information
• A) Interviews – can be conducted by specialist in the
HR department to be able to take note of the
following such as problem of the employees in his job,
additional skills or knowledge the employee needs to
better perform the job and what training the
employee believes is needed.
• B.) Survey questionnaire – normally involves developing
a list of skills required to perform particular job
effectively and asking employees to check those skills
in which they believe they need training.
Training Process
• C.) Observation – specialist in the HR department who
have been trained in performing job analyses 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, turn-over,
accident rates, performance appraisal information to
determine if problem exists and whether any problems
identified can be addressed through training.
Training Process
• 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 significant performance
deficiency and whether that deficiency should be
rectified through 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.
Performance Analysis to determine
training needs
• . Behavior discrepancy or lack of
experience

Cost Value
Analysis

Can’t Is it a can’t do or a won’t do

do problem?
Won’t
Know what to do?
do
Could do if wanted to?
Set Employees wants to do best?
Standard
Eliminate
Obstacle Motivate
Employee
Practice/ Change Transfer or
Train the Job terminate
Training Process
• 2.) Designing Training Programs/ Training Objectives
– after determining the training needs, objectives
must be established to meet those needs. Effective
training objectives should state the benefit to the
organization, department or individual when the
training is completed.
• Outcome of training objectives can be categorized
as follows:
• Instructional objective
• Organizational and departmental objective
• Individual and growth objectives
Training Process
• 3.) 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
• 5.) Evaluation and follow up – assess program
success according to:
• Reaction
• Learning
• Behavior
• Result
Traditional Training Methods
• 1.) Hands on Methods – refers to training methods
that require the trainee to be actively involved in
learning. These methods include on-the-job training,
simulations, case studies, business games, role-plays
and behavior or modeling. These methods are ideal
for developing specific skills, understanding how skills
and behaviors can be transferred to the job,
experiencing all aspects of completing a task or
dealing with interpersonal issues that arise on the
job.
Traditional Training Methods
• 2.) Apprenticeship Training – provides beginning
workers with comprehensive training in the practical
and theoretical aspects of work required in a highly
skilled occupation. This is a combination of on-the-
job training and off-the-job training since the
training in the industry is supplemented by
appropriate theoretical instruction in the classroom.
• 3.) Vestibule or Simulated Training- the trainee
learns the job in an environment that serves as a
miniature of the real plant or office. It represents real
life situations with trainees decisions resulting in
outcomes that mirror what would happen if they
were on the job.
Traditional Training Methods
• 4.) Off-the-job Training – other than apprenticeship,
vestibule training and on-the-job, all other training is
off-the-job whether it is done in the organization’s
classroom or elsewhere.
• A.) Lecture/discussion approach
• B.) Audio-visual Techniques
• C.) Tele-training or teleconferencing
• D.) Case Studies
• E.) Role playing
• F.) Correspondence training
• G.) Management or Business games
• H.) Mentoring / coaching
• i.) Experiential training
Career Development at Caffmaco Feeds,Inc.

Caffmaco Feeds, Inc. is a major producer of animal

feeds. It is located at San Vicente, Silang, Cavite. Since its
founding in 1972, the company has grown rapidly in terms
of sales and profits.
However, human resource policies have tended to
lag behind company growth. Human resources have not
been a high priority.
Recently, Erlynn Camanag has been hired as
Director of Human Resources for the company.
Erlynn has been on the job for four months and has
been assessing the situation to determine the more
significant human resource problems. One significant
problem seems to be high turnover among laboratory
chemist who work in research and development.
In particular, the R&D department had lost some of
the young chemists who had been considered to be on
the fast track. Most had gone to competitors in the local
area.
 In an interview with some of the employees in the
department, some claimed that the company does not
really care about its good people. Some even commented
that the present Board of Directors do not want to allow
their better people to move up in the organization. They
are more interested in keeping their employees in their own
department so they can meet their own goals without
having to orient and train new people.
They went on to criticize the company for using an
appraisal form of no section dealing with future potential or
future goals, no rewards for supervisor who develop their
subordinates, no human resource planning to identify
future job openings, and attitudinal barriers against women
in management.
Erlynn checked out the information and found it to
be accurate. Clearly, she has an even greater challenge
than she had anticipated. She realizes she has an
immediate problem concerning high turnover of certain
key employees.
In addition, she also has a series of interconnected
problems associated with career development. But
she is not quite sure what to do and in what order.

1.) If you were Erlynn, how will you solve the absence
of career development at Caffmaco Feeds, Inc.

2.) Is the BOD right in adhering to the policy of

maintaining the employees in the department where
they currently belong to avoid orienting and training
new employees? Explain.
 Chapter 5

Performance Review
and
Appraisal
Performance Evaluation
• 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 answer
the question “ How well has the employee
performed during the period of time in question”
• Performance is measured in terms f result.
Performance may be defined then as the
accomplishment of an employee or managers
assigned duties and the outcome produced on a
specified job function or activity during a specified
time period.
Why Measure Performance
• 1.) Managers cannot manage and define what
is expected, give feedback and recognition
without defining the basis or performance
measures. It allows management to specify
what must be done, combines feedback and
goal setting.
• 2.) On the part of the employee, he cannot
improve on what he is supposed to do without
the necessary data before and after to see if
performance is actually improving.
Why Measure Performance
• 3.) Creating high performance requires a
definition or clear goals so you will know it when
you see it. In addition, all high performers get
there because they have 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 pay-out has been
earned.
Objectives of Performance
Appraisal
• 1.) Provides information upon which promotion,
transfer, demotion, lay off, discharge and salary
decisions can be made. It could justify reward
decisions including merit increases, promotions and
other forms of rewards.
• 2.) Provides an opportunity for the supervisor and his
subordinates to review and identify the subordinates
strengths, and weakness or work related behavior.
This in turn lets both of them develop a plan for
correcting any deficiencies the appraisal might
have unearthed and reinforce the things the
subordinate does right. This feedback clarifies for
employees the job expectation held by his
supervisor.
Objectives of Performance
Appraisal.
• 3.) Basis in identifying the training needs of
employees as well as evaluating the success of
training and development initiatives are not
based on opinions but rather on results.
• 4.) Helps in the firms career planning process
because it provides a good opportunity to
review the person’s career plans in light of this
exhibited strengths and weaknesses. Thus, it
could produce evidence and/or opportunity
for career progression.
Objectives of Performance
Appraisal.
• 5. ) For easy monitoring and supervision
• 6.) Helps to evaluate the relative individual or
team contributions in achieving the
organization’s goals.
• 7.) Provides information to evaluate
effectiveness of selection and placement
decisions.
Performance Criteria
Three Criteria that are included in the construction of
performance evaluation:
a.) Relevance = relevant performance
dimensions are determined by the duties and
responsibilities contained in the job description.
b.) Reliability = should produce consistent and
repeatable evaluation.
c.) Freedom from Contamination = should
measure each employee’s performance without
being contaminated by factors that an employee
cannot control such as economic conditions, material
shortages or poor equipment.
Sources of Data in Appraisal
• Production data = evaluate the degree of
dependable task accomplishment by measuring
quantity and quality of performance. Example:
number of units produced per hour, peso volume of
sales, profit, return on investment. These are
considered the best measure of performance
because they are directly observable and they can
be counted.
• Personal data = type of information found in an
individual’s personnel files. Example: absenteeism,
tardiness, training program completed, critical
incidents. Except for critical incidents, these data
are directly observable and can be reliably
measured.
Sources of Data in Appraisal
• Judgment of Others = many of these
spontaneous and innovative behaviors
so important to organizational
effectiveness can only be assessed by
the judgments of others and ought to be
obtained in every evaluation
Performance Appraisal Methods
• A.) Multiple Person Evaluation Methods
• 1.) Ranking Method = ranking employees from the
most efficient to the least capable on each trait or
quality to be used in judging the employees
performance. This can be very difficult to do if the
supervisor is asked to rank a large number of
subordinates and many traits are involved.
• 2.) Paired Comparison = consist of asking an evaluator
to consider only two individuals at one time and to
decide which of the two is better. Then another pair of
names is presented to the evaluator for another
evaluation.
Performance Appraisal Methods
• 3.) Forced Distribution = this is similar to grading on a
curve. The Rater is asked to rate employees in some
fixed distribution of categories such as superior, above
average, average, below average and poor.
• B.) Individual Evaluation Methods
• 1.) Graphic Rating Scale = Using this technique, the
rater is presented with a set of traits. The rater is asked
to rate employees on each of the characteristic listed.
It includes both numerical ranges and written
descriptions. For each performance variable (Quality,
Productivity, Job knowledge, dependability and
attendance) there is a listing of levels of performance
ranging from outstanding to unsatisfactory.
Performance Appraisal Methods
• 2.) Critical Incident Method = this technique requires
raters to maintain a log of behavioral incidents that
represent either effective or ineffective performance
for each employees being rated. Such incidents are
actual behavioral accounts recorded as stories or
anecdotes. Supervisors describe briefly the behaviors
of their subordinates, noting any favorable or
unfavorable incidents.
• 3.) Checklist and Weighted Checklist = checklist is a set
of objectives or descriptive statements. If the rater
believes that the employee possesses a traits listed, the
rater checks the item, if not the rater leaves it blank.
The employees evaluation is the sum of the scores.
Drawback of this method is that it is time consuming
and costly to prepare the question for each job
category.
Performance Appraisal Methods
• 4.) Behaviorally Anchored Rating Scales (BARS) = this
approach relies on the use of critical incidents to serve
as anchor statements on a scales. This method
evaluates observable behavior rather than subjective
perceptions but it requires a lot of time and effort to
develop the scale. BARS is constructed for each
individual job category and not for individual positions
within these job categories.
• BARS usually contains the following features:
• i) 6-10 performance dimensions are identified and
defined by raters and ratee.
• ii) Dimensions are anchored with + and – critical incidents
• iii.) Each ratee is then rated on the dimensions.
Performance Appraisal Methods
• 5.) Management by Objective (MBO) = is a method by
which managers and subordinates plan, organize,
control, communicate and debate to jointly establish
specific measurable goals and periodically provide
feedback.
• Steps for MBO
• i.) set the organization’s goals
• ii.) Set departmental goals
• iii.) Discuss goals to establish how each employees can
contribute to the departments attainment of its goals.
• iv.) Define expected result (set individual goals) to set short
term performance targets.
• v.) Performance reviews: Measures the result- compare actual
performance of each employee with expected result
• vi.) Provide Feedback
Who Should Evaluate
Performance
• 1.) Supervisor – hierarchical arrangement of formal
authority in most organizations gives the supervisor
legitimate authority to evaluate subordinate. The
rationale is that this individual has the most opportunity to
observe the employees, should have a better
understanding of the job being performed and is
motivated to optimize the employees performance
because supervisor future is directly linked to the
organizational units profitability.
• 2.) Subordinates – upward or subordinates appraisals
provide unique information because they know better
than anyone else whether leadership is good or bad. It
also creates incentives to change and reduces power
differentials. It makes the workplace more democratic
and responsive to human needs as well as increases the
flow of communication.
Who Should Evaluate
Performance
• 3.) Peers = research on peer evaluations has found
them to be predictive of success. It also yielded
good reliability and validity. It also has the potential
to increase the interaction and coordination
between peers. To add, many organizations are
already finding that multiple raters add to the
effectiveness of the appraisal system. Ratings
collected from several sources tend to be more
accurate and have fewer bias.
• 4.) Self-assessment = very valuable for personal
development and the identification of training
needs but not for evaluative purposes. This should
be completed prior to review session and then used
as the agenda for that session.
Who Should Evaluate
Performance
The effectiveness of self-appraisals depends upon a
trusting relationship between superior and subordinate.
• 5.) The Customer/Vendor = customers and vendors,
whether internal or external, can be potential
evaluator. This kind of appraisal would be more
relevant for service organizations such as banks,
where the inputs provided by external customers
can be useful for staffing. But as the customer’s
objectives may not always correspond with the
organizations expectation, customer appraisal
works best only as a part of the appraisal process.
Process Involved in Performance
Evaluation
• . Performance
Information
Goal Setting Standard
Dissemination
Setting

Actual
Performance
Correcting Measurement
Substandard
Performance

Rewarding Feedback
Exemplary Evaluation
Performance Result
Competency-based Assessment

• Competencies are the knowledge,

skills, abilities, personal
characteristics, and other people
based attributes that help
distinguish superior attributes to
discern superior performance from
average performance under
specific circumstances.
Competency-based Assessment

• Key Employer Benefits

• 1.) Employees are assessed against industry-
recognized standards.
• 2.) Training costs can be reduced because
learning and development can occur at the
same time.
• 3.) Assessment helps determine the best
employees to fill internal positions or for
putting together teams for particular projects.
• 4.) It is an important part of determining
organizational productivity and profitability.
Competency-based Assessment

• Key Employee Benefits

• 1.) Existing skills and knowledge are
recognized.
• 2.) Less time to achieve required
qualifications.
• 3.) The Process is at the individual’s
own pace.
Performance Appraisal Problems
and Solutions
• 1.) Unclear Standards – happens when the traits and
degrees of merit are open to interpretation. For
example, different supervisors would probably
define “good” performance, “fair” performance
and so on. The same is true of traits such as quality
of work or creativity.
• 2.) Halo effect – means rating of a subordinate on
one traits biases the way supervisor rate that person
on other traits. For example, an unfriendly employee
will often be rated unsatisfactory for all traits rather
than just for the trait “gets along well with others.
Performance Appraisal Problems
and Solutions
• 3.) Central Tendency - occurs when a rater avoids
using high or low rating and assign average rating,
thus failing to discriminate between employees.
Ranking employees can avoid this central tendency
problem because all employees must be ranked
and thus cannot all be rated average.
• 4.) Leniency/Harshness/Strictness error – some raters
tend to give mostly favorable rating to each
employee while others tend to evaluate the same
performance levels more unfavorably. Raters can
assess their own harsh and lenient rating tendencies
by examining ratings or distribute ratings, forcing a
normal distribution to avoid this error.
Performance Appraisal Problems
and Solutions
• 5.) Bias – individual differences among ratee in
terms of characteristics like age, race, sex, religious
and political affiliations can affect their ratings often
quite apart from each ratee’s actual performance.
This will seriously distort the value of the rating plan
and must be avoided at all cost by objectively
rating performance.
• 6.) Recency Effect – recent events tends to have an
unusually strong influence on performance
evaluation. Because of this error, an individuals
good work for a whole year may be ignored as a
result of one negative incident occurring just prior to
the performance review.
Factors for Evaluation
• A.) Work Practices and Standards
• 1.) Accountability - accepts responsibility for actions
and accomplishments during the performance of job.
• 2.) Decision-Making – Demonstrate effective decision-
making skills. Reviews all facts objectively before
decisions are made.
• 3.) Time Management – manage time and efforts
effectively, meets commitments and completes
assignments within established deadlines.
• 4.) Dependability – the employee is consistently
available for work, arrives on time, is fully prepared for
customers without delay and works his assigned hours.
Factors for Evaluation
• 5.) Administrative requirements – accurately and
promptly completes administrative requirements (
order forms, activity reports, expense reports and the
like) and other documents as necessary.
• 6.) Dealing with Stress – demonstrates ability to take
control of work situations in a tactful manner. Exercises
good judgement, neutralizes potentially hazardous
conditions and functions effectively in emergency
situation.
• 7.) Productivity – produces a volume of work consistent
with job’s responsibility and requirements.
Factors for Evaluation
• B.) Quality Standards
• 8.) Completion and quality of work – completes work
assignments within established deadlines. Carries out
work thoroughly, accurately and according to
specification.
• C.) Team Relations
• 9.) Relationship with other team members – works
cooperatively with team members in order to
accomplish work effectively and efficiently, helps
create and maintain good working relationships,
provides assistance and back-up
Factors for Evaluation
• D.) Customer Relations
• 10) Customer relation – demonstrates knowledge of
customer needs and effectively deals with customers
problems and complaints. Provides reliable
feedback/follow-up, listens and understands
information that is being conveyed.
• E.) Skill-Based Standards
• 11.) Communication (Written) – write concise,
organized and easy-to-read reports, letters and
memos. Documents and files appropriate information
in an organized way for future reference.
Factors for Evaluation
• 12.) Knowledge of Software programs – demonstrates
knowledge of required software programs used in the
performance of job/duties. Accurately inputs and
retrieves data.
• 13.) Planning – demonstrates ability to effectively use
methods and arrange priorities as necessary to
complete assigned tasks. Request or obtains
information needed to complete assigned task.
• 14.) In-service training – participates in in-service
training programs and takes advantages of other
continuing education opportunities.
Factors for Evaluation
• Project Leadership
• 15.) Communication (oral) – maintain discretion and
confidentiality in communicating with employees and
management.
• 16.) Communication and Management Feedback –
informs management of relevant problems, issues or
change in a timely and consistent manner.
• G. Problem Solving
• 17.) Coordination – orchestrates several functions and
or resources to accomplish an objective. Identifies
resources which can contribute to solving a problem.
Factors for Evaluation
• 18.) Problem resolution – analyzes problems and
needs, takes action as appropriate in a timely manner
based on objective data, and keeps appropriate
personnel informed of action.
• 19.) Crisis Action – recognizes when a problem is
critical enough to require immediate attention and
provides effective solutions.
Short Case for Discussion:

The Strict Evaluator

Samuel Icasiano is upset about his recent

performance review. Samuel has worked for Reyes
Enterprises for 12 years. For the first nine years,
Samuel’s job performance was consistently rated
outstanding. However, for the past three years,
Samuel’s performance has been rated only a little
above average. According to Samuel, his
performance review scores have been low during the
past three years because his supervisor gives
unreasonably low ratings. Marissa Andres was
assigned as Samuel’s supervisor three years ago.
Marrisa says that she tries to evaluate her
subordinates objectively and she refuses to change
Samuel’s ratings. Samuel claims that any other
supervisor would have evaluated him at least 10
points higher. He feels very disappointed about his
low evaluation because he knows it will mean a
minimal pay increase and that it will hurt his chances
for promotion.

1.) Why do most people expect higher evaluations

than they receive?
2.) What is wrong with his performance evaluation
process and what can be done to improve it?
3.) If Samuel and Marissa were members of different
religious groups, how could the problems with
performance appraisal process be separated from
allegations of discrimination.