MAJOR FUNCTIONS OF HUMAN RESOURCE MANAGEMENT (HRM)

1. Talent Acquisition includes workforce planning and employment.

a. Workforce planning focuses on assessing human resource needs of the organization

b. Employment includes recruitment and selection

• Recruitment refers to activities designed to attract qualified applicants

• Selection is the process of choosing the best qualified applicants to fill open positions in the organization.

2. Performance Management refers to the process of ensuring that employees’ performance contributes to realizing the
organization’s goals and objectives.

3. Employee Training and Management Development refers to the process of providing employees with specific skills
and knowledge they need to perform their jobs

4. Compensation Management refers to the management of financial returns that employees receive in exchange for
services that they provide

5. Benefits Management refers to the process by which employee benefits are designed and given to employees

6. Employee Relations Management refers to the management of all interactions and relations between the
organization and employees

7. Labor Management Relations refers to the functions of HR that pertains to the management of employee terms and
condition

THE BASES OF HUMAN RESOURCE MANAGEMENT

• HRM became a function in the organization with the birth of organized labor in England and the United States

• In the Philippines, it is attributed to the need to settle labor strife

• The enactment of labor laws such as the Minimum Wage Law of 1951, the Industrial Peace Act of 1953, the Blue
Sunday Law of 1953, and the Medical and Dental Treatment Act of 1954, spurred the organization of personnel
departments in the Philippines

THE EVOLUTION OF HUMAN RESOURCE MANAGEMENT

• Welfare officer - 1890 to 1913

• Labor Manager - 1914 to 1939

• Personnel Management - 1945 to 1979

• Human Resource Management - 1980 to Present

• HR business partner and Human capital

– 2000 Till now

STRATEGIC VIEW OF HRM

• SHRM school of thought defines SHRM as a pattern of planned human resource deployments and activities
intended to enable an organization to achieve its goals

KEY FACTORS TO ACHIEVE HRM

-Alignment of HRM activities with an organization’s goals, strategies, and objectives

-Effective interrelations among the HRM functions

-Use of the systems approach in demonstrating the strategic role of HRM

CHANGING LANDSCAPE OF HRM

Transformation from personnel administration to personnel management to human resource management. Some even
renamed it to human capital management department

• Personnel administration

ensure policies and procedures were implemented efficiently and changes in personnel status were
appropriately processed and documented

• HRM

Monitor or police activities of line managers to make certain that they complied with organizational
policies and procedures as well as legal requirements;

Develop and implement programs on talent acquisition and management ensuring that qualified human
resources are acquired, motivated, and developed in order to realize the organization’s goals and objectives

STRATEGIC VIEW OF HUMAN RESOURCE MANAGEMENT

• Advantages of Strategic Human Resource Management

• Contribute to organizational effectiveness

• Lead to sustained competitive advantage which competitors cannot imitate easily through the following
internal resource characteristics:

a) Employees who possess specific skills which are required to successfully implement an
organization’s strategic initiatives

b) Behaviors or attitudes of individuals which constitute an organization’s competitive edge and

are not easily copied by others

c) Employees who demonstrate discretionary behaviors which are critical in creating an

organization’s competitive advantage
STRATEGIC ROLES OF HR PRACTITIONERS

The role depends on the needs of the organization

• Strategic Partner

• Management of Strategic HRM

• Deliver HR strategies, programs, and activities to support the organization’s strategies

• Administrative Expert

• Management of firm’s infrastructure

• Deliver efficient HR processes

• Employee Champion

• Management of employee contribution

• Handle day-to-day problems and needs of employees to strengthen their commitment and
engagement in the organization

• Change Agent

• Management of transformation and change

• Identify and implement processes for change

• Build an organization’s capacity for change

MODEL OF STRATEGIC HUMAN RESOURCE MANAGEMENT

• Human resource management is a key component of an eco-system which inputs from external and internal
environments affect the outputs such as products and services through the transformation process

1) Inputs

2) Transformation Process

3) Outputs
MODEL OF STRATEGIC HUMAN RESOURCE MANAGEMENT

1) Inputs

• External Environment

• Impact of Globalization

• Outsource business process

• Set up of regional offices with a more culturally diverse workforce

• Increased Competition

• Need to review compensation packages to be competitive in recruitment

• Advancement in Technology

• Affect the types of talent, skills, and competencies an organization needs to recruit and
employ

• Turn to automation in the organization systems and processes

• Changing Demographics of the Workforce

 • Aging workforce can affect the size of the talent pool

2) Transformation Process

• Workforce

• Identify competencies and skills of employees as well as behaviors and attitudes to attain goals
and objectives of the organization

• Recruit and select individuals who possess required characters and competencies

• Train and develop these individuals

• Retain competent employees who also have the right characters for the organization

• Jobs

• Consist of duties, tasks, and responsibilities performed by an employee in exchange for

compensation

• Organizations can redesign employees’ jobs to increase both the quality of employees’ work and
productivity

• Job Dimensions

• Skill variety, Task identity, Task significance, Autonomy, Feedback

• HR Systems

• Influence organizational performance by eliciting and controlling employee behaviors

• Human Resource Information System

• Consist of employees’ profiles

• Other forms of system

• For example: Compensation System

• Consist of program to pay employees, meet organization’s need to attract,

motivate, and retain good employees

• For example: Talent Management

• Acquire, develop, and retain talent for the organization

• Processes

• Promote efficiencies through benchmarking activities to compare what and how the
organization conducts certain HR functions to ensure efficient processes are deployed

• Some forms of HR metrics which are commonly used:

• Utility analysis, Return on Investment

3) Outputs

• Expected outcomes of HR programs and activities are measured with the results experienced during a
specific period of time
 • Feedback is then derived from the gap analysis to determine if workforce competence, competitive
advantage, effectiveness, and sustainability of the organization is achieved

HR PRACTITIONERS IN THE 21ST CENTURY

• Credible Activist

• Strategic Positioner

• Capability Builder

• Change Champion

• HR Innovator and Integrator

• Technology Proponent

KEY ELEMENTS FOR SUCCESSFUL STRATEGIC HRM

• Involvement and support of top management

• Partnership between HR and line management

• Responsiveness to external environment

• Systems approach to HR management and transformation

• Alignment to the organization’s vision, mission, and goals

• Measurement of outcomes

• Mindset of change, creativity, innovation, and dynamism

• Value for people and engagement of human resources

WORKFORCE PLANNING AND RECRUITMENT

1. Workforce Planning is essential in informing HR practitioners of the number of positions the organization needs,
the competencies and the skills required for the position

2. The foundations of a good hiring decision are laid on the workforce planning

3. Also called manpower planning

THE OUTCOME OF WORKFORCE PLANNING SIGNALS THE HR PRACTITIONER TO:

• Assess the supply side of the organization’s human resources

• Determine gaps in HR

• Conduct internal and external recruitment

Recruitment refers to organizational activities that influence the number and types of applicants who apply for a job and
whether the applicants accept jobs that are offered

External Recruitment includes actions intended to bring a job opening to the attention of potential candidates outside
the organization and to influence whether these candidates apply, maintain interest and accept a job offer

DETERMINING THE MANPOWER NEED: WORKFORCE PLANNING

• Starts with knowing the right kind of people needed

• Workforce Planning provides a roadmap for the HRD to execute all of its functions. It provides the organization
with a staffing decision such as promotions and all other movements that relates to getting people into the
organization.

1. The over-all objective of workforce planning is to define the right profile of people an organization requires to
meet its short and long term plans and goals.

2. Its end result is a staffing plan which specifies the required human resources needed to deliver the desired
outcomes and help the organization achieve its objectives.

Right
People

Right Right
Cost Workforce Skills
Planning

Right Right
Time Place
Scope of Workforce Planning

Workforce Planning can be performed at various levels of an organization. Planning can be done for an entire
organization, division or section within the organization, a set of units or workgroups or even for a single unit within the
company.

When do you conduct workforce/manpower planning?

Whenever there is a change in the kind and number of people needed in the organization or in the unit

*Changes may happen within or outside the organization

Internal Changes within the organization

• Company expansion

• Financial Difficulties, downsizing

• Company relocation

• Company mergers

• Changes in technology

• New products lines/services offered

• Increased targets for production, sales

External Changes

• Problems in the economy

• Problems in politics

• Changes in the market (new entrants)

• Changes in the labor market

STEPS IN WORKFORCE PLANNING:

SITUATIONAL ANALYSIS OR ENVIRONMENTAL SCANNING

• Involves a review of the environment in which the organization operates and/or identifying/focusing on current
and anticipated factors in the internal environment that may affect the organization

• Involves examining relevant aspects of the external environment

• Involves looking at internal resources and anticipating how these may need to change in the future to meet
organizational goals

• Internal scan can also include examination of the history and past experience of the organization

• SWOT Analysis-a structured way of doing an environmental scan; helps the organization develop a full
awareness of major factors that may affect the organization’s ability to attain its goals

• Through SWOT Analysis, positive and negative factors are identified from within or outside the organization
STEPS IN WORKFORCE PLANNING: FORECASTING DEMAND

The process of identifying the number and kind of people that an organization will need at some point in the future

Uses past data to predict future manpower needs

The precision of the forecast depends on

- accuracy, relevance, completeness of data

- method of forecasting employed

- inability to consider other factors

Ratio Analysis

Forecasts the extent to which one factor will increase or decrease when the other factor is changed

Examines the historical relationship of the two factors to project future changes

Trend Analysis

Examines the changes in an organization’s staffing levels over a period of time and determines a pattern or trend in
these changes when they are compared with changes in the level of a key performance or financial metric of the
organization

Statistical Analysis

An approach to demand forecasting that can simultaneously analyze multiple factors using more sophisticated formulas

Consists of studying sets of equations describing the complex interrelationships of various factors related to the business
of the organization

Requires input of larger amount of data

Qualitative - less statistical and rely on experts’ assessment to anticipate future staffing needs

-demands an objective and systematic review of past data, experts’ experience, sound judgment and conclusions
derived from existing information or knowledge

Two common methods;

Expert forecasts

Delphi Technique

Expert forecasts

Estimate future human resource requirements based on their past experiences, judgment, and knowledge about the
organization’s future or anticipated manpower needs

Can also use information from surveys and benchmarking studies to estimate workforce staffing numbers
Delphi Technique

Aims to improve objectivity of expert forecasts

Involves a group of pre-selected individuals and getting their inputs on future manpower levels and then consolidating
their projections

Uses a bottom-up approach to gathering staffing projections from ”experts” in the organization

STEPS IN WORKFORCE PLANNING: ANALYSIS OF THE SUPPLY OF HUMAN RESOURCES

Internal Supply

Make an inventory of:

-available manpower in the organization

-Number and quality of available manpower

Skills

A skills inventory is the summary of skills and abilities of employees

Assessments are based on inventory.

Replacement charts are visual representation for identifying internal candidates available and qualified

Internal Supply

Two important techniques for forecasting human resource supply:

➢ Succession Analysis

➢ Markov Analysis

Succession Analysis

Consists of:

Making a detailed inventory of how many people are currently in various job categories or have specific skills within the
organization

Making an analysis of the expected movements and changes in the inventory

Unit’s
Current Projected Projected
internal
Staffing Outflow of inflow of
Supply for
Level People people
next year
Markov Analysis

Made by developing a transition matrix that shows the internal flow of human resources

Projection of movements is made based on historical average rate of movement from one position to another; usu.
Expressed in statistical probability

Allows HR to predict how many people will remain or move to certain levels in the organization

Steps in Workforce Planning: Analysis of the Supply of Human Resources

External Supply

When internal supply falls short of the staffing demand forecasted, external supply forecasting needs to be done. This
involves a labor market analysis that indicate the availability of the people outside the organization.

Development of plans for action

Involves consolidating all data and inputs and determining the most effective strategy to close the gap and achieve
desired manpower profile needed

STEPS IN WORKFORCE PLANNING: DEVELOPMENT OF PLANS FOR ACTION

An HR planner has to identify the organization’s chosen strategies;

-making planned reductions in the workforce -acquiring talent and hiring manpower

-building internal talents

-renting talents

-making changes in schedules and work arrangements

To guide the HR practitioner in sourcing candidates, clear recruitment objectives have to be established. This means
identifying the:

• Number of positions to be filled

• Date on which positions should be filled

• Number of applications desired

• Type of applicants sought

• Job Performance goals for new hires

• Expected new hires retention rate

RECRUITMENT

Methods :

Job Advertising

-most common

-advantage is the ability to reach a wide audience

-disadvantage is its cost effectiveness

Self-selection-thought process of reviewing information about the organization and the job vacancy done by potential
applicant

Internet postings

-most common platform for job ads

-use of company website, online job boards, use of social media

Headhunting or executive search firms

-operate by having pre-screened pool of candidates who are ready to be sent and referred to companies

-an advantage to companies that have limited network of candidates for critical positions and limited capacity to
screen and background check applicants

Employee referrals

-rated as one of the most commonly used and best method

-effective due to the following reasons:

• employees will refer only people they believe will make good employees

• provide realistic information about the job and the organization

• employees are likely to help the person they referred

• especially effective way to bring job openings to the attention of the “passive candidates”

The success of the referral system depends on the size, span, and volume of the actual network of contacts and friends of
the employees.

Internal Recruitment

-done when people within the organization are sourced as possible candidates for new or vacant positions

-can be company or employee initiated

Rehiring former employees

-effective source of candidates

-cost efficient

Rehires “boomerang employees”

Walk-ins

-applicants are considered to be keenly interested in finding a job

-company has little knowledge or no control about the quality of the applicant

College Recruiting

- involves participating in job fairs conducted by schools

Internships

-formal arrangements between schools and employers

-beneficial to employers, schools and the learners

CREATIVE METHODS

Signing Bonus- lump sum of money that an employer provides to entice an applicant to join or “sign-on’ with the
company

EFFECTIVE RECRUITMENT CHALLENGES

• Lack of information or poor brand image of the company as employer

• Time available to fill a vacancy

STEPS IN SELECTION

Recruiting Process →

1. Gather information about pool of qualified applicants

2. Evaluate qualifications of each applicant

3. Make decision about employment offers.

BASIC SELECTION CRITERIA

• Education and Experience

• Skill and Abilities
• Personal Abilities
• Hiring for “Fit”
• Education – formal classroom training from school
• Experience – amount of time the individual has spent working in either a general capacity or a particular field of
study.

COMMON CHARACTERISTICS OF GOOD AND BAD HIRING DECISIONS

In a nutshell, a good hiring decision is systematic, objective, well-informed, and timely decision or choice about
candidates who are most suited to or have the best possible for for the position or role being filled.

What is screening or selection?

- Is a systematic series of activities that is done to assess the qualifications and competencies of applicants so that the
employer can determine whether or not the applicants can be hired for the vacancy.

Early pre-employment screening

• 580 AD in China

• Imperial Exam

• Modern-day Equivalent of Civil Service Examination

• Modern Screening Methods Characteristics

• Reliability

an instrument’s ability to accurately, precisely, and consistently measure something

• Validity

an instrument’s ability to measure what it is supposed to measure

SAMPLE SELECTION SYSTEM

1. Application and Background Checks (Qualified or Unqualified)

2. Employment Test (Performs Well or Perform Poorly)

3. Interviews (Good impression or Poor impression)

4. References and Recommendation (Positive Feedback or Negative Feedback)

5. Physical Examination (Selection Decision/Job Offer or Physically Unfit)

SELECTION / SCREENING METHODS

• Decisions about screening and hiring of applicants are based on expectations or prediction about their future
work behaviors and performance.

• Selection / Screening Methods

• Paper Screening

• Testing

• Interview

• Pre-employment background checks

 • Criminal records check

• Pre-employment Health check

Takeaway: Regardless of selection method used, the goal is to obtain the right type of information needed to make
correct hiring decisions.

WHAT IS SCREENING OR SELECTION?

- Is a systematic series of activities that is done to assess the qualifications and competencies of applicants so that the
employer can determine whether or not the applicants can be hired for the vacancy.

PAPER SCREENING

❑ Paper Screening

- Is the review by the Recruitment Specialist of written application letters, application forms, or résumés
submitted by applicants.

❑ Objectives of the Paper Screening

✓ To draw conclusions regarding the applicant’s abilities, motivation, personality and job fit; and

✓ To evaluate the alignment between an applicant’s qualifications and the requirements of the vacancy
being filled.

❑ Takeaway: Recruiters often look beyond the objective date presented in résumés. They also make inferences
about subjective information such as dispositional characteristics and person-job fit (Wright et al., 2011).

TESTING

❑ Psychological or Psychometric Tests

- Are instruments that consist of a set of carefully developed items, questions, or tasks that measure specific
behaviors, abilities, or aspects of personality.

❑ These can be “Pencil-and-paper” type tests or tests that require the test taker to perform a certain task.

❑ Takeaway: Since tests are “standardized” or made up of a uniform set of items or tasks, all applicants can are
measured and compared with each other.

❑ General Types of Tests

❑ Cognitive ability tests

❑ Job knowledge tests

❑ Personality tests

❑ Integrity tests

❑ Situational judgment tests

 ❑ Work sample tests

❑ Physical ability tests

❑ Physical fitness tests

1. Cognitive ability tests (or IQ Tests)

a) Measure a variety of mental abilities, such as:

• Numerical ability

• Reading comprehension

• Logical reasoning

• General intelligence

• Learning ability

• Verbal ability

• Others

b) Highly valid predictors of job performance for many types of jobs

c) May be further categorized into 2 sub-groups:

• Tests of Achievements; and

- Focus on what an applicant already knows or has learned in the past

• Tests of Aptitude

- Focus on what an individual is capable of achieving in the future

3. Personality Tests

- Measure traits and examine aspects of candidate’s character or psychological make-up, such as:

▪ Person’s interests

▪ Motivations

▪ Attitudes

▪ Perception regarding certain situations

▪ Ways of interacting with people

- Most are done through “self-report inventories” or questionnaires that are completed by the applicant

- Multiple choice, true or false or answers using Likert scale.

- Questions are generally covert, you do not know what is actually being measured

- No defined time, no right or wrong answers.

Takeaway: Personality factors being assessed include openness, conscientiousness, extraversion, agreeableness, and
Neuroticism or emotional stability (OCEAN).
 4. Integrity Tests

- Measure a candidate’s attitudes and experiences related to personal integrity, such as the person’s tendency to
be:

▪ Honest

▪ Trustworthy

▪ Dependable

▪ Reliable and

▪ Exemplar of “pro-social behavior”

- Include questions about an individual’s attitudes toward “theft and other deviant or illegal acts”

5. Situational Judgment Tests

- Assess how candidates handle specific situations encountered in the workplace

-Measure judgment required for solving problems in work- related situations

6. Work Sample Tests

- Candidates are given sample of typical work that is done by the position / job they are applying for and then
evaluating their performance on the sample task.

- Although valid predictors of job performance, they are not easy to administer because they often require much
time, effort, and resources to set up.

7. Physical Fitness and Ability Tests

- Used to select candidates who have the physical capacity to perform the tasks needed

- Physical capacity like strength, endurance, tolerance, etc.

HOW TO DETERMINE WHICH TEST TO USE

Factors to consider:

1. Cost

2. Available time for administering and scoring tests

3. Skills needed by the company in interpreting and analyzing exam results

• Takeaway: In general, using a combination of tests helps in getting a better and more holistic assessment of the
candidates and is thus a good way of improving the quality of hiring decisions made on the basis of tests.
INTERVIEW

• The most commonly known and used form of applicant selection.

• Primarily a question and answer type of conversation between a candidate and one or more interviewers.

• Ways to conduct an interview:

• Face-to-face conversation

• By phone

• Other forms of telecommunication

• Teleconference

• VoIP

• Panel Interview

• Several applicants at the same time

• Takeaway: Objective of the interview is to help interviewers determine whether a candidate has the necessary
skills and competencies needed for the vacancy.

Types of interview

✓ Behavioral Interview

✓ Situational Interview

✓ Stress Interview

✓ Structured Interview

• Takeaway: In spite of its popularity, it is generally regarded as lacking in validity and objectivity and is often
influenced by various biases, such as:

• different rating standards of interviewer

• Biased evaluation based on attributes of candidate like gender, age or appearance

MEANS TO ENHANCE VALIDITY OF INTERVIEW

• Asking “good” open-ended questions

• Avoid asking leading or suggestive follow-up questions

• Leading questions – those that are phrased in a way that leads the interviewee to respond to the
question in a certain way

• Instead, properly phrase your questions to get a real response from the interviewee.

• Multiple interviews and interviewers

• At least 2 interviews before they are selected for the job

 • Allows the firm to get multiple sources of applicant information and different perspectives on applicant
responses.

• Multiple assessments

• Reduces the element of bias

• Training of interviewers

• Helps in addressing inaccuracies in the interviewer’s assessment

• Minimizes the effects of interviewer’s biases

PRE-EMPLOYMENT BACKGROUND CHECKS

• This is done to process and verify all character references and information provided by the candidate.

• What are being checked?

• Biographical information

• Educational information

• Past work experiences

• How are these being checked?

• Contacting candidate’s previous employers

• Reviewing authenticity of documents submitted (transcripts, etc)

• Asking candidate’s references to provide factual information, not opinions, about the applicant.

• Asking for Company-issued certification of employment

• Letter of Recommendation

• Make use of Social Media

CRIMINAL RECORDS CHECKS

• What are being required?

• National Bureau for Investigation (NBI)

• Police Clearance

• Barangay Clearance

• Takeaway: This criminal check is the broadest form of checking on the integrity and “moral standing” of a
candidate.

PRE-EMPLOYMENT HEALTH CHECKS

• The goal is to determine whether an individual is fit to perform his/her job without risk to himself/herself or
others.
 • Basic Tests include:

• Chest X-ray

• Blood examination

• Urine and Stool specimen

• Physical and dental check-up

• Takeaways:

• The utility and cost effectiveness of these tests are being challenged in a research published by the World
Health Organization (WHO).

• Pre-employment medical exams are only justified when the job involves working in hazardous
environments, requires high standards of fitness, or when safety of other workers or of the public is
concerned.

RANDOM PRE-EMPLOYMENT DRUG TEST

• In accordance with the mandate of RA 9165, the Department of Labor and Employment formulated and issued
Department Order No. 53-03, which provides for the Guidelines for the Implementation of a Drug-Free
Workplace Policies and Programs for the Private Sector.

• DO 53-03 provides that workplace policies and programs on drug abuse prevention and control to be adopted by
companies shall include, among others, the component of random drug testing for officers and employees.

MAKING THE HIRING DECISION

• The screening process concludes with the final decision to hire a candidate or group of candidates.

• A good hiring decision is one that is made through an objective, systematic, thorough, and timely review or
analysis of factual information

• At the end of the screening process, the HR practitioner and other decision-makers must meaningfully
consolidate all the information about the candidates and arrive at a sound and informed decision about who to
hire and to whom to make a job offer.

• Job Offer – formal expression of the employer’s decision to hire a candidate.

• It includes:

• Salary

• Position Title

• Start Date

• Working Days

• Working Hours

• Reporting Relationship

• Job Description (as an attachment)

 • Confidentiality and Non-compete Agreement

METRICS IN RECRUITMENT & SELECTION

• Important so as not to waste time, effort and money

• There is no “one-size-fits-all” method to effective talent acquisition.

• HR metrics relevant to talent acquisition includes:

• Cost-per-hire metric

• Total amount spent to the total number of hires

• A measure of cost efficiency

• Time-to-hire metric

• Cumulative amount of time needed to fill the open position

• Another measure of efficiency of the talent acquisition effort

• Applicant-to-successful hire ratio

• Measures the proportion of candidates hired and application received and processed

• It measures the overall efficiency of recruitment

PERFORMANCE MANAGEMENT

 A system to ensure the alignment of what the employees do with what the organization needs to accomplish.

 Such system is designed to provide an ongoing process of ensuring that employees’ performance
contributes to realizing the organization’s MISSION, GOALS, and STRATEGIES.

 Such process starts with a clarification of what organization needs and what activities to focus
on that will impact an organization’s value chain

 Can be measured as a function P = M x A x E where P is Performance, M is Motivation, A is

Ability, and E is Environment

STEPS OF PERFORMANCE MANAGEMENT CYCLE

 Seven critical steps in Performance Management System

1) Establish performance criteria and standards

2) Communicate the performance criteria and standards to the employees clearly

3) Monitor the employee’s job performance and provide ongoing feedback

4) Document evaluation of employee’s performance

 5) Conduct effective performance evaluation discussion with the employee

6) Provide intervention as needed in Step 5.

7) Redefine performance criteria and standards for the following performance cycle and proceed to step 2.

1. Establish performance criteria and standards

 Three types of information used to establish performance criteria

a) Trait-based (performance factor)

 Characteristics of the individual such as initiative, flexibility, tendency towards

collaboration which are believed to affect the way he/she performs his/her job
effectively and successfully

 Difficult to measure these traits

b) Behavior-based (performance factor)

 Specific observable and measurable behaviors such as effective and tactful

interpersonal skills

c) Results-based (performance outcome)

 Accomplishments of observable and measurable outcomes

NOTE: Weight assignment between Performance Factors and Performance Outcomes differs depending on the job or
function.

 Standards are the expected level of performance for each of the criteria

 Rating scale commonly used:

 Outstanding

 Exceeds Expectation

 Meets Expectation

 Needs Improvement

 Not Applicable

2. Communicate the performance criteria and standards to the employees clearly

 When is the time to communicate?

 New employees – right at the start on the first day of work

 Existing employees – at the start of the performance review cycle

 Detailed explanations of criteria and standards must be clearly and precisely relayed to the
employees by the supervisors
3. Monitor the employee’s job performance and provide ongoing feedback

 Performance is an ongoing process and must be observed regularly

 Honest detailed and specific feedback from supervisor to employees can motivate employees or
rectify behaviors before they are out of hand

 Help develop desired work habits

 Help avoid unnecessary surprises at the time of formal performance evaluation sessions

 Timely manner is important

 Regular informal communication between supervisor and the employee is more desirable than
one-time formal performance appraisal

4. Document evaluation of employee’s performance

 Evaluation form is used to document the observation and assessment of an employee’s job
performance

 Forms are not identical; instead, they are designed based on the level of the positions such as
managerial, rank-and-file, technical, etc. because each level has its own function and as a result
different criteria and standards are observed

 Core competencies are normally applied to all employees such as customer service orientation,
integrity, etc.

 Special job-related competencies are added to certain technical or functional positions

 Supervisors or raters should be consistent in performance factors and ratings, improve methods
of collecting and documenting evaluations, reduce bias and improve accuracy in observations

5. Conduct effective performance evaluation discussion with the employee

 Objectives of conducting evaluation is to:

 Recognize outstanding performers

 Deal with problems early in order to improve the employee’s future perform

 Reasons of performance appraisal

 Keep the performance level up to or above expectation

 As a channel to provide valuable and honest feedback to employees

 Adjust expectation together with the employees if it is too low or too high

 Determine the HR actions i.e. promotion, demotion, retention, termination

 As part of the employee’s profile and history of performance is valuable to organization

to identify potential talents from within

 Address weakness and potential by providing training and developmental exercises

 Roles of HR Department in Evaluation

  Provide training sessions to supervisors to ensure their assessment are as objective,
consistent, and systematic

Establish a performance management system

 Three challenges in evaluation

a) Confrontation

 Avoid using negative adjectives and personal comment

 Outcome-oriented approach – discuss only event that happened and address

the issues of the event – is more acceptable

b) Bias

 Poor explanation of and unrealistic expectation in criteria and standards lead to

potential inconsistent job outcomes which eventually lead to biased evaluation

c) Key performance drivers as potential barriers

 There are tasks which are part of a process and the employee who handles
those tasks is only part of the equation if the outcome of the process is
unsatisfactory

 Identify the key performance drivers of the employee’s tasks to avert their
adverse impact

6. Provide intervention as needed in Step 5.

 Discuss a development plan

 Best is to ask the employee first how he/she plans to improve

 Improvement goals and activities involved must be agreed upon between supervisor
and the employee

 Progression monitoring is needed to ensure effort to correct is exerted and the methods
used are effective

7. Redefine performance criteria and standards for the following performance cycle and proceed to step 2.

WHAT ARE TOOLS FOR PERFORMANCE EVALUATION?

 Commonly used Performance Evaluation tools are:

1) Checklists

2) Essay format

3) Behaviorally anchored rating scale (BARS)

4) Management by Objective (MBO)

5) 360-degree Performance evaluation

 6) Balanced scorecard

7) Performance dashboard

 Commonly used tools are:

1) Checklists

 Uses descriptive statements, traits, and behaviors

 Must be instrumental in enabling the ratee to meet the goals and objectives of a unit or the
organization as a whole

 Pros

 Easy to administer

 Cons

 Descriptions, traits, and behaviors are too generic

 Can have different weight based on positions even though it is for the same trait or
statement in the checklist which evaluator does not know

 For a generic checklist, some items are irrelevant to certain positions and the total
weight and meaning of the weight can be affected

3.) Steps to design Behaviorally anchored rating scale (BARS)

a. Collect descriptions of behaviors from critical incidents

1) Job analysis team is formed to observe and interview individuals (employees who
perform the tasks and customers who receive the outcomes of the tasks)

2) The team will list all descriptions of behaviors for each job including examples of
effective and ineffective behaviors

b. Identify performance factors

1) Group behavior descriptions of the job from step (i) to form performance factors such as
flexibility, initiative, customer orientation, etc.

2) Performance outcomes expected for the job should also be added to the list of
descriptions of BARS

c. Assign values to descriptions

1) Team will rate the descriptions between 1 and 10, where 1 is very ineffective and 10 is
very effective in accomplishing the tasks in the job being studied

2) Statistical analysis used to determine which description statements will be kept under
each performance factor

d. Determine performance standards

1) Levels for each performance factor must be assigned

1) Low, average, good, very good, and exceptionally good

 2) Rating scale can be used together with the levels

2) Performance factors are given weights to demonstrate the impact of the factors on the
employee’s contribution to the objectives of the organization

3.) Management by Objective (MBO)

 Performance is managed through goal-oriented, participative and systems approach

 Align employee’s goals, organization’s goals, and unit’s goals

 Employees are empowered and have flexibility to decide how best to meet the goals

 Pros

 Greater participation may improve morale and communication

 Performance of employees can be assumed and their needs for improvement

highlighted

 Cons

 Some companies tend to raise goals often; if these goals are set too high, employees
become frustrated

 It can take a while to be effective

4) Steps of Management by Objective (MBO)

a. Clarify the organization’s, unit’s, and job’s goals and objectives

b. Set SMART (Specific, Measurable, Attainable, Realistic, Time-bound) goals together with
employee

c. Monitor employee’s performance on an ongoing basis and give timely feedback to identify
potential barriers or problems

d. Evaluate performance and discuss evaluation with the employee

e. Reward performance and then repeat the cycle

1) 360-degree Performance evaluation

 Multi-rater feedback

 Evaluations come from everyone who works with the subject employee, i.e. supervisors, co-
workers, customers, suppliers, and the subject employee

 Supervisors evaluate performance factors and performance outcomes

 Others evaluate job-relevant behaviors and competencies of the employee

 Pros

 Multiple sources to provide relevant feedbacks to reduce bias

  Problems found early and coaching or mentoring techniques can be applied to correct
the problems

 Cons

 If the subject is newly hired, the evaluators may not know the subject well enough to
give accurate and meaningful feedbacks

 Time consuming and can be costly

a. Top management advises to all employees when 360-degree evaluation is used

b. Both employees and managers develop the evaluation process and performance criteria

c. Employees are trained on the techniques used to obtain and provide feedback

d. Test all levels from management to non-management to sales to technical positions of the
process in one or two units in the organization as pilot unit

e. Objectives of changing to the 360-degree process must be clarified to employees

5.) Balanced scorecard

 A four-perspective performance assessment metrics which tie to organization’s mission, vision,

strategies, goals, and objectives

 Financial

 Customer

 Learning and Growth

 Internal Business Process

 The goals and targets of the organization cascade down to the employee level, from
management level to rank-and-file level

 Performance planning worksheet which includes goals and objectives of each of the
perspectives, planned activities, KPIs, KPDs, and feedbacks is used to impact the achievement of
targets

 Pros

 Financial growth, improved processes and innovation, greater customer satisfaction,

motivated and trained employees

 Cons

 KPDs must be identified first before targets are set

Steps of Balanced scorecard

a. Clarify the organization’s strategies, goals and objectives

b. Set goals for the unit of the subject and focus on the four perspectives
 c. Set goals for the manager of the unit and individual contributors

d. Identify quantifiable key performance indicators (KPI) for each of the perspectives and key
performance drivers (KPD)

e. Monitor and provide timely feedbacks to ensure the subject employees are on target

f. Evaluate and discuss performance between the manager and the subject

g. Development plan for the employee must be agreed upon if needed

7.) Performance dashboard

 Ensure appropriate accountability in meeting expected organizational and individual outcomes

by using consolidated visual display of the most important information needed to achieve one
or more objectives

 Targets and outcomes are displayed in graphs, maps, charts

 Applicable for individuals or units or departments

 Key success factors

 Metrics relevant to the business and stakeholders such as employee turnover ratio

 Proper definition of target audiences

 Simple and precise

 Sustained leadership in a dashboard champion

 Capability to generate meaningful reports as well as indicating required actions and

activities which lead to improvement to achieve required outcomes

Types of performance dashboard

a. Strategic dashboards

 Indicate progress toward organization-wide strategic goals and objectives in terms of

KPI and growth and trend measures

 Executive-level

 Highly summarized, highly graphical, less frequently updated

b. Tactical dashboards

 Indicate progress toward organization’s specific strategic initiatives

 Short-term trends and highlighting opportunities or identifying risks by using ratios and
targets

c. Operational dashboard
  Monitor business progress in near and real time and toward departmental goals and
objectives

 Allow users to intervene quickly to resolve issues or take advantages of opportunities

immediately

Most important aspect in performance evaluations

 Conduct training for supervisors on how to document performance evaluation and how to effectively
conduct performance discussion employees

TYPES OF RATING ERRORS

 Leniency/Strictness Error

 Define Anchors (Dimensions)

 Force A Curve

 Central Tendency

 Reluctant to Give High/Low

 Explain Need for Variability

 Recency Error

 Last Action Halo

 Encourage Frequent Evaluation

ERROR OF CENTRAL TENDENCY

 Performance-rating error in which all employees are rated about average.

LENIENCY OR STRICTNESS ERROR

 Performance-rating error in which the appraiser tends to give employees either unusually high or unusually low
ratings.

RECENCY ERROR

 Performance-rating error in which the appraisal is based largely on the employee’s most recent behavior rather
than on behavior throughout the appraisal period.
SIMILAR-TO-ME ERROR

 Performance-rating error in which an appraiser inflates the evaluation of an employee because of a mutual
personal connection.

IMPORTANCE OF EMPLOYEE TRAINING AND DEVELOPMENT

 Why are employee training and development programs key components of human resource management?

 Training and development programs can motivate employees to perform and succeed in their jobs and
companies are able to achieve their business objectives

 Training efforts need to be aligned with organizational strategies and organizational objectives
must be taken into consideration

 Impact other HR areas such as

 Hiring and selection

 Rewards management

 Retention

 Performance Management

 Complement the process of selecting the best qualified employees with effective programs to reduce
the gap between employees’ competencies and skills and their positions’ required competencies

TRAINING FRAMEWORK

 Training can be prepared systematically by using a framework as follows:

Steps in the framework

1) Selection leads to best qualified employee with skills, competencies, and values from previous work
environment being hired

2) Onboarding

- process allows the newly hired employee to blend in the new environment seamlessly.

a. Orientation

b. Socialization - process allows the employee to understand the culture and values of the company

3) Training process provides new employee opportunities to learn specific skills and competencies needed in the
assigned job
 4) Evaluation of training result is conducted based on efficiency, skills, and behavior learned by the newly trained
employee which will be guided by the company’s objectives and strategies

5) All activities must be carried out with the company’s goals and objectives in mind

 Organizational Objectives and Strategies

 Training can be classified as 1) learning and 2) re-learning new skills, attitudes, and competencies
specifically needed to achieve business objectives

 Training programs MUST be designed to support the organizational objectives defined by management
through the competent and well-trained employees

 Onboarding (Orientation and Socialization Activity)

 Orientation and socialization activities MUST be provided to new employees to allow them to
understand the culture, values, and skills used in the hiring organization which are likely different from
their previous work environment

 Training Process

 It starts with analyzing and identifying operational and strategic training needs of the organization and
the employees

 Training objectives and training programs are designed, developed, validated, and implemented using
various training methodologies based on the results of the analysis

 Evaluation of Training Efforts

 Success of the training programs is being assessed based on the evaluation of outcome of the trainees’
competencies against expected competencies needed to achieve organizational objectives

BENEFITS OF TRAINING

 What are the benefits of training and development?

 Develop new and specific skills which can help the employees succeed in their jobs and in the future and
which can become competitive advantage for the organization

 Develop skills to work “effectively in a team” can help raise the employees’ awareness and
understanding of team members’ roles, company’s culture, and the expectation from all departments of
the organization

 Help organizations achieve business goals when the training programs are designed to increase the
degree of knowledge and skill transfer to the on-the-job performance
PROBLEMS OF TRAINING

 What are the problems of training and development?

 Cost of the training process can be substantial

 Hiring experts to teach; Trainees are paid to learn instead of producing at work; Sending
trainees to seminar outside of the company

 Time consuming

 Time is always a constraint in company training either too short to cover all needed material or
too few topics to be taught given a set time duration

 Impact of training on business objectives can be hard to assess

 Training process is complex and it takes time for trainees to absorb and apply the material to
their work to make significant impact; it also requires excellent trainers to ensure the quality of
training which fits the business objectives

TRAINING PROGRAM DEVELOPMENT

 What are the key factors in developing training programs?

1) Knowledge of how individuals learn

 Classical conditioning

 Passive form of learning due to the fact that individuals master first task and second task
naturally already; when they apply their skills of first task and second task
simultaneously to a new task – third task – they learn this new task automatically

 Operant conditioning

 Modeling

 Cognitive learning
 New information received, stored and retrieved successfully to perform a new task or
use a new efficient and effective method to perform an existing task

2) Knowledge of what trainees contribute in the training setting

 Operant conditioning

 Learning through the experience of either positive or negative consequences

3) Knowledge of the learning environment

 Modeling

 Learning through observation and imitation of how others perform

 Social Learning Theory of Bandura (1977)

 Attention to details, retention of received information, motor reproduction of the information, and
motivation are critical factors to the success of modeling

 WHAT ARE THE KEY FACTORS IN DEVELOPING TRAINING PROGRAMS?

 Five key factors that are critical to Adult learners when conducting training

a) They need to know why they should learn something new

 For example: They want to be promoted to manage teams of junior associates; learning
how to lead is needed

b) They must have strong belief in self-directing

 For example: They are ambitious to be promoted and initiate to learn other tasks which
are done by their peers or even their supervisors

c) They expect to be treated with respect because of their great volume and different quality of
experience than the youth

 For example: Instructors of training session must not treat like students in college;
instead, use their experience to lead the sessions and link their experience to the
objectives of the sessions

d) They are eager to learn when life-changing situations exist and force them to perform effectively

 For example: During economic crisis employees are more willing to learn new tasks
because they are concerned about their job security

e) They are more problem- or task-oriented

 For example: There is a complaint about how our customer representatives answer
phone calls. Training should be created based on the actual recording of the calls and
target the problematic behaviors such as angry tone of voice, inconsistent conversation
speed, or appropriateness of the answers given by the customer representatives

1) Knowledge of what trainees contribute in the training setting

 The learners’ goals towards the training sessions impact the outcomes of the training

a) Mastery

 Develop and master a new skill or competence

b) Performance

 Apply newly learned skills or competence and score higher in performance

evaluations

 Intelligence level of the participants in the training sessions is important to the success of the
training and this identified level can develop the training sessions effectively
 1) Knowledge of the learning environment

 Minimize the gap between training setting and the actual work setting so that learners can apply
what they learn

 On-job training

 On Site, but not on-the job; and

 Off Site training

ORIENTATION AND ONBOARDING

 What is onboarding process?

 Prepare new hires to adapt to new work environment, equip them with the right mindset and skills
needed in the new environment so that they can achieve the goals set out for them in a short period of
time

 What are the purposes of conducting orientation?

 Provide clarity of company expectations and reduce anxiety which new hires may have

 Let new hires feel wanted and needed before probation ends to reduce the possibility of costly high
turnover rate

 Introduce on-job mentors to new hires who can count on when they need help in future to save them
and company time when problems arrive

 Align the new hires’ personal expectations with the organization expectations to ensure they are setting
practical and realistic expectations

 Steps of onboarding process

1) Job fit (pre-orientation) should be done during the hiring and selection stages

2) Employee orientation is a proactive approach to provide insights of the company practices, policies, and
values and objectives to the new hires to ensure they start with the right attitude and practices in their
positions

3) Post-orientation includes socialization and acculturation activities in which the new hires are formally
and introduced to different teams gradually. Evaluation may be conducted to gauge the effectiveness of
the orientation as well

THE TRAINING PROCESS

 Steps of training process

1) Analyze the needs of the organization

 Needs assessment to determine if training is required to close the performance gaps

  This assessment includes

a) Organization analysis which studies the company’s statements and resource availability, and
determine the type of training program needed to achieve these goals

b) Task analysis which studies the jobs in the organizations and identify job-related duties, skills
and behaviors through detailed information such as job descriptions

c) Person analysis which studies the personnel’s readiness level and identify the personnel to
receive training

2) Determine objectives and instructional design of a training program

 List the specific training objectives for each program to address identified training needs

 It can be done by breaking down the organizational training objectives into several
objectives

3) Develop program

Training Identifying Identifying

Program Program Training Training
delivery skills to be assessment
objectives content duration faculty
methods assessed tools

• Program objectives

Enumerate overall scope

State the expected outcomes

• Content

Close skills gap and align training outcomes to the organizational goals

Coordinate with the requesting department head to validate the contents

• Duration

Allocate sufficient time for skills training, delivery, and assessment

Decide working hours on site or off-site which may incur productivity los

4) Choose the appropriate delivery methods and validate the methods

 Validate the method using pilot test among a mixed of new and experienced employees and
heads of the requesting departments and adjust according to feedbacks
 5) Evaluate the effectiveness of the training program

 Prepare trainees to pay close attention to learning outcomes expected

 Assessment outlines the evaluation criteria and the means for measuring the results

 Actual skills and behavior vs. Expected outcomes

 Tool to use

 Kirkpatrick’s and Phillips’ model of learning analytics

LEVEL 1

REACTION: How did the participants feel

about the training program?

ROI  Tools

 Surveys or feedback forms

Results
 Pros

Impact  Quick and very easy to obtain and not

expensive to gather or to analyze

Learning  Cons

 Cannot tell if participants have learned

Satisfaction the new skills

LEVEL 2 – LEARNING

 Is there an increase in knowledge – before versus after training?

 Tools

 Pre- and Post-tests, simulations

 Pros

 Simple to set up and easy for measuring quantifiable skills

 Cons

 Can be short-term memory only

LEVEL 3 – BEHAVIOR

Did the participants change their behavior and apply newly learned skills on the job?

 Tools

 Use of control groups (employees who did not attend training

programs versus those who did) and survey or/and interview;
line managers are usually involved in assessment
  Pros

 Can really see the effectiveness of the application of the

participants in actual job setting

 Cons

 Take time to observe results

LEVEL 4 – RESULTS

To what extent did the change in behavior affect the organization?

 Tools

 Key performance indicators

 Pros

 Can measure output, quality, costs, time, and non tangible

outcomes

 Cons

 Difficult to measure the increase of organization’s performance

because of the new skills obtained by one employee only

LEVEL 5 – RETURN ON INVESTMENT

Compute the return on investment

 Tools

 Estimate or obtain measurements of expenses and benefits

connected with training program and compute ROI

 Pros

 Quantifiable and see the real effectiveness of the program on

organization

 Cons

 Difficult to compile the data and isolate the data accurately to

reflect the effects of the program

TRAINING METHODS

 How to identify the right methods to use?

 Depend on the needs of the trainees and goals of the program

 Depend on training budget and resources available and time allocation

 No one method can fit all purposes

 Objective of any methods chosen is to empower the learner to gain the required knowledge and skills, improve
his/her job performance, and eventually drive results aligned with organization objectives

 Two main methods

1) Instructor-led

a) Lecture

 Classroom format

 Used to teach information, policies, and procedures

 Pros

 Fast and cost-effective

 Adjust pacing of learning depending on the level of training needs

 Most effective when interactive approaches such as discussion and problem

analysis are employed

 Cons

 Boring

 Passive participants may not learn as much and as fast as active participants;
outcomes vary

b) Outdoor training

 Activities conducted outside company premises

 Used to build team and leadership

 Pros

 Sharing of insights and learning experience is facilitated

 Encourage teamwork to solve problems

 Cons

 Distractions

c) Training simulations

 Use technology to imitate real-life work experience when real work system cannot be
accessed or be dangerous to practice in real operations

 Pros

 Safe and can achieve various levels of training closed to real work difficulties
  Cons

 Can be expensive

d) On-the-job training

 Carry out the actual work

 Demonstration method – learners observe and learn from a colleague

 Coaching method – experienced employee to train learners intensively on job skills

 Mentoring method – experienced employee to guide learners job skills and provide
personal support

 Job rotation method – learners experience a wide range of tasks in different

departments and learn through hands-on experience

 Pros

 Skills learned and remembered by performing the task repeatedly in an actual

work situation

 No additional cost added

 Cons

 Quality of work depends on the ability of trainer and time availability

 Bad habits can be learned

 Potential disruption to work processes

e) Project assignment

 Learners join different project teams to be exposed to different parts of the business
and learn through team setting

f) Off-the-job training

 Learning outside the scope of their job

 Distance learning, graduate school, online courses, vocational training courses

 Pros

 Wider range of skills or qualifications can be obtained

 Learn from outside experts

 Build confidence

 Cons

 Expensive
  May need induction training before taking up the specific off-the-job training

 Lost the employees after they go through training successfully

2) Technology-based Training

WHAT IS MANAGEMENT DEVELOPMENT?

• A planned and integrated effort of training managers and potential managers to develop their personal and
organization skills as well as competencies such as leadership

IMPORTANCE OF MANAGEMENT DEVELOPMENT

• Difficult to hire qualified leaders; therefore, retaining the capable ones has become very important

• To do so, show them that the organization values and appreciates them by further developing their career in the
organization and show them the plan which they can connect their roles and organization direction clearly

• Management skills are behavioral, observable, measurable, and can be learned, and the attributes of managers
that constitute emotional intelligence can contribute to organizational excellence

IMPORTANT GOALS OF MANAGEMENT DEVELOPMENT

• Three major goals must be achieved in conducting management development for managers:

1) To facilitate the acquisition of knowledge

• Knowledge includes problem-solving and decision-making competencies as well as cause-and-

effect awareness in the form of consequences of behavior

2) To change attitudes

• Reception and reaction of various attitudes towards situations and environments through
observation of words and action as well as positive and negative feedback

3) To change behaviors

• Reception and reaction of various behavior towards situations and environments through the
change of attitudes
MANAGEMENT DEVELOPMENT PROGRAM

• Steps in creating an In-House Management Development Program

1) Analyze manager’s developmental needs

2) Understand what kind of competencies are needed at which managerial levels

3) Select the right candidates

4) Analyze chosen candidates’ developmental needs

5) Develop management development plan

6) Monitor management development progress of individuals

STEPS IN CREATING AN IN-HOUSE MANAGEMENT DEVELOPMENT PROGRAM

1) Analyze manager’s developmental needs

• Understand the organization’s statements (Mission, Vision, Goals and Objectives)

• Define organization’s core values, required behaviors, knowledge, competencies, managerial

skills together with the top management

• Determine the organization structure and highlight the key current managerial levels and
positions and identify future key managerial levels and positions

• Identify present available managerial talents and employees with potential managerial talent

1) Understand what kind of competencies are needed at which managerial levels

• Competency modeling is a time-consuming process which can be simple or complex

COMPETENCIES OF A FINANCE MANAGER

(BUSINESS COMPETENCY)
COMPETENCIES OF A FINANCE MANAGER (TECHNICAL COMPETENCY)

COMPETENCIES OF A MARKETING MANAGER

STEPS IN CREATING AN IN-HOUSE MANAGEMENT DEVELOPMENT PROGRAM

2. Understand what kind of competencies are needed at which managerial levels

• Competency modeling is a time-consuming process which can be simple or complex

a) Define performance criteria

» identify critical success factors -> align success factors with org. statements

b) Select sample

» Identify superior performers and key stakeholders for sampling

c) Gather data

» Identify all possible traits of superior performers which contribute to their

excellent performance

d) Analyze statistically

» Use rating or scores for each trait and develop statistical hypotheses through
multiple regression models

e) Validate data and analysis results

f) Define relevant competencies for each managerial level

g) Apply the knowledge of key relevant traits or competencies to the program

3. Select the right candidates

• Criteria are:

– Impact on organization

– Area of responsibility

– Qualification both skills and knowledge

– Problem-solving

– Supervision

– Interaction

• Ratings will be applied to the selection process

4. Analyze chosen candidates’ developmental needs

• Establish a baseline information for each candidate who will undergo training by identifying
skills and competencies possessed by the candidate as well as the areas required to improve

• Performance evaluation is commonly used to assess the candidate

 • 360-degree performance evaluation and assessment centers and surveys or tests are commonly
used also

5. Develop management development plan

• A plan must be designed which includes objectives, strategies to be employed, time frame for
completing activities, key performance indicators used, and progress monitoring schedule

• Strategies commonly used are:

a) Rotation (In-house)

1) Move from one position to other in the organization

2) Rotation period and objectives are clearly specified

3) Pros:

1) Learn all business functions, systems, and processes

2) Help future communication between manager-in-training and other

department managers

4) Cons:

1) Not all managers-in-training possess the knowledge required in a

particular function and will take longer to just get up to speed

b) Small Project (In-house)

1) Assign to lead a project outside of his/her expertise

2) Planning and implementation skills are tested

3) Project must be approved by senior manager

4) Pros:

1) Design to stretch the manager’s capabilities and take him out of his
comfort zone

2) Learn to work with different people or groups

5) Cons:

1) Sometimes results cannot be seen in the near term and the manager-in-
training is asked to return to his original position

c) Attendance in special departmental meetings (In-house)

1) Asked to attend specific meetings and to summarize and critique the meetings
 2) Asked to provide recommendations on particular topics or issues discussed in
the meetings

3) Pros:

1) Obtain broader knowledge of the organization’s business strategies

which normally are not shared downward in full details

2) Create opportunities for personal and organizational growth

4) Cons:

1) Ad hoc meetings may not allow the manager-in-training to see a full

picture of what is happening and eventually led to inconclusive
recommendations on the topics or issues

d) Heading a task force (In-house)

1) Assign to lead an ad hoc cross-functional task force to solve ad hoc issues

2) Pros:

1) Apply all management skills from planning to organizing to motivating

members

3) Cons:

1) Ad hoc issues may not allow the manager-in-training to see the end
result of his/her work if the issues are dragging too long and the
manager-in-training is asked to report back to his own department

e) Providing training (In-house)

1) Asked to provide training in his/her area of expertise to other staff

2) Need to seek assistance from HR in developing modules and sessions and other
coordination work with staff from different teams

3) Pros:

1) Learn to identify what is considered key or critical criteria of a task and

key performance drivers during the development process

2) Improve communication and interpersonal skills significantly

4) Cons:

1) Participants may not be telling the manager-in-training the truth

regarding his/her teaching method effectiveness and still able to pass
the evaluation part

2) Hard to measure the success of the training if the learners are from
other teams to just broaden their knowledge about the business
functions in the organization without actually using the newly acquired
knowledge at work
f) Writing procedures and/or developing a manual (In-house)

1) Asked to write procedures or user manual by interviewing various appropriate

individuals

2) Pros:

1) Develop analytical, written, and verbal communication, problem-

solving, emotional intelligence, and interpersonal skills

3) Cons:

1) Time consuming and can be costly if the manager-in-training is removed

from his/her position too long or cannot work full-time for extended
period of time

g) Corporate universities (In-house)

1) Organization-specific knowledge courses are designed to improve their

candidates to excel within the organization

2) Courses can be attended in a classroom set-up or online at home

3) Pros:

1) Skills obtained from the courses are highly relevant and organization-
specific

4) Cons:

1) Costly to create and maintain one

h) Coaching (In-house)

1) One-on-one guidance to improve knowledge, skills, and work performance

2) Serve as a motivational tool

3) Pros:

1) Focused on areas which need improvement and correct

2) Guide the manager-in-training to grow through the process

4) Cons:

1) Costly to hire specific coaches even if the coaches are from other
departments as they will be removed from their positions for extended
period of time to coach or paid extra to do just that

i) Mentoring (In-house)
 1) A senior and more experienced manager in the organization to mentor the
manager-in-training

2) Understanding of process, approach to decision-making situation, work styles,

and expectations is discussed during the mentorship

3) Assignments may be given to test the manager-in-training as case studies

4) Pros:

1) Focused and organization-oriented learning

2) Motivational

5) Cons:

1) Time and frequency of meetings and feedback from the mentors can be
difficult to arrange properly

j) External training and development programs (Outside)

1) Can be costly but provide broader knowledge to manager-in-training to think

outside the box

k) Joining professional organizations and attending conferences (Outside)

1) Provide wealth of experience to candidates and keep them posted with new
practices but considered as passive learning approach which is not always
effective

l) Acting as consultant to a project (Outside)

1) Create opportunity to improve interpersonal skill such as written and verbal

communication and problem-solving skill but candidate may not be able to see
the result of the project if it is dragged too long by the clients and the company
decides to remove the candidate from the project and assign a new one to it

m) Speaking at conferences (Outside)

1) Improve communication skill

6. Monitor management development progress of individuals

• Ensure the candidate has met the objectives designed in the program which can be measured
through key performance indicators in a pre-determined specific time frame

• Compare the results against the baseline data of each participant and combine the gap analysis
outcomes to identify if the program is effective and the learners are progressing according to
plan