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Week 2 Seminar Selection

AssessmentCentre

A selection technique typically used for appointments to posts that will involveconsiderable investment in future career development. For example, many employersrecruit graduates onto management training schemes and their methods of selectionoften include an assessment centre. Although time consuming and costly,assessment centres are deemed to be appropriate because they allow candidates to

be assessed over several days using a range of tests and simulation exercises. Thisproduces a more rounded view of the candidates, potentially leading to better-qualityselection decisions. Critics argue that assessors rarely use all the dimensions testedin the assessment centre when making their final decisions, and although assessmentcentres score high on reliability, they often rate poorly in terms of predictive validity.[See alsodevelopment centre.]

Biodata A technique used in the selection process. Biodata are pieces of information that canbe objectively categorized (for example, qualifications, years of relevant experience,positions of responsibility). Particular weightings are given to the various categoriesaccording to their importance and so each candidate will get a score based on his orher biodata. This can be an effective sifting mechanism in order to reduce the pool ofapplicants to a smaller number (in other words, shortlisting). It is only possible to usethe biodata technique where the same information is available for all candidates;

therefore, some organizations ask applicants to fill in biodata questionnaires ratherthan relying on information from application forms orcurricula vitae (rsums).

E-Recruitment (sometimes known as e-cruitment) is the recruitment of employees over the Internet.Originally used mainly for technical and IT staff this form of recruitment has grownrapidly in recent years in line with growing use of the Internet. It is used particularly formore junior or entry-level positions, but all types of job can be and are advertised inthis way. E-recruitment assumes a number of different forms. Many individualemployers now advertise jobs on their own website and use Internet recruitment asan alternative or supplement to external advertising. In addition, there are job boardsoperated by specialist Internet companies that act as labour market intermediaries,advertising vacancies on a website and holding details of those seeking work on file.Finally, there are Internet directories that list job vacancies on company sites andallow free connection from the directory to the company website. E-recruitment

consists in large part of advertising jobs through a new medium. It can involve morethan this, however, and many companies perform initial screening of job applicantsvia Internet questionnaires and even, controversially, applypsychological tests via theInternet.

Entry Shock Is the mismatch between what newcomers expect the organization to be like beforethey join and what they find it to be like after they have joined. The newcomer feelsdisappointment (or in some cases resentment) and the process of socializationbecomes more difficult, or even impossible. Entry shock explains why someemployees leave after a very short timewhich is obviously costly for theorganization since the recruitment process has to be repeated. This emphasizes theneed for organizations to provide accurate information to candidates during therecruitment processsometimes called realistic job previews.

Executive Search

Consultants

(popularly known as headhunters) are specialists who find suitable people for senior

jobs in organizations. They use contacts within the industry or profession to locatelikely candidates and approach them directly on behalf of the client organization.These consultants are expensive, often charging a fee of up to 50 per cent of the firstyear's salary.

Extended InternalLabour Market

The supply of employees outside the organization who have family or social ties withemployees in the organization. Because of these connections, they have someknowledge of what it is like to work for the organization and therefore might moreeasily fit into the organizational culture than other potential employees in the externallabour market.

External LabourMarket

The supply of potential employees outside the organization. This can be local,regional, national, or international. [See recruitment.]

Graphology Is the analysis of handwriting and is sometimes used as a selection technique. Intheory, a person's handwriting is supposed to reveal aspects of their personality and

character, so a company might use a graphologist to produce profiles of thecandidates based on handwriting samples. Graphology has extremely low validitybutthis does not stop some firms from using it amongst their selection techniques.
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Surveys reveal it to be widely used amongst organizations in France.

Internal LabourMarket (ILM)

The supply of employees within the organization who could fill a job vacancy. [Seerecruitment.]

Panel Interview An interview situation where two or more interviewers take it in turns to ask questions.

PersonSpecification

This is a document that describes the skills, knowledge, and qualities needed toperform a particular job. It is used in the recruitment process in order to translate the job requirements (specified in the job description) into tangible features that

applicants need to demonstrate they possess in order to be deemed suitable for thevacancy. Typically, a person specification will outline the criteria that are (a) essentialand (b) desirable, in terms of qualifications, experience, work-based competencies,and behaviour-based competencies. Using the person specification, it is possible forthe managers involved in the selection process to decide upon the appropriateselection techniques to use in order to assess and compare the candidates.

PrivateRecruitmentIndustry

The private recruitment industry consists of private-sector labour marketintermediaries that engage in four kinds of activity. First, there are companies thatprovide permanent recruitment services and assist clients in filling job vacancies. Inmany cases, this work embraces outplacement and headhunting (see executivesearch consultants and recruitment consultants). Second, there are employmentagencies that provide temporary staff and contract workers. Third, there are specialistagencies in the entertainment sector that act as personal managers and

representatives and who are allowed to charge workers for this service. Finally, thereare job vacancy information providers, which include newspapers and magazines andInternet websites (see e-recruitment). The private recruitment industry has grownmarkedly in the UK and other advanced economies in recent years.

PsychologicalTests

Are techniques used in the selection process and can be divided into two types. (a)Cognitive tests measure a person's mental abilities, such as IQ, spatial awareness,reasoning, logic, and numeracy. Although reliable, such tests are often questionablein terms of their validity. (b) Personality tests measure a person's attitudes, values,and beliefs. There are a variety of personality tests in use, but typically they involve alengthy questionnaire containing a series of value statements to which candidatesmust indicate their preferences. Taken together the answers produce a personalityprofile of the candidate which can then be compared with the profile the assessorsdeem appropriate for the job. For example, a candidate whose personality profile

reveals extroversion is more likely to fit the salesperson profile than a candidate whoscores high on the introversion scale. Personality tests have gained in popularity asa selection technique, not least as a result of managers wanting employees whoseexisting values are in line with the corporate culture.

Psychometric Test The generic term used to describe a wide range of tests that measure mental abilities,behavioural preferences, and attitudes/values. The tests produce a quantifiable resulta test scorethat can be used to compare a person with others, or against aparticular standard. Such tests can be used as part of the selection process, althoughthey ought to be administered and interpreted by qualified professionals withpsychology training. [See alsopsychological tests.]

Realistic JobPreview

Information provided to candidates during the recruitment process which gives anaccurate picture of what the organization expects from its employees, and theconditions of work. The tendency of organizations to sell themselves to prospective

employees by giving attractive, but unrealistic, impressions increases the likelihood ofentry shockand can result in the newcomer leaving after only a short time in the job(hence the recruitment process has to be undertaken again). The downside ofrealistic job previews is that they can deter applicantsincluding the best-qualifiedapplicants who, research shows, tend to place more weight on negative informationthan less-qualified applicants. [Seejob simulation.]

Recruitment Is the process of generating a pool of candidates from which to select the appropriateperson to fill a job vacancy. Typically, the recruitment process involves identifying ajob vacancy, specifying the requirements of the job ( job description) and the skillsneeded to perform the job competently ( person specification), deciding on theappropriate method of application, choosing the appropriate method of advertising thevacancy, and devising the procedures for dealing with applications. Whilst the termsrecruitment and selection are frequently used together, they constitute different

stages in the overall process of employee resourcing (see selection). Externalrecruitment is the process of attracting applicants for a vacancy from the availablepool of labour outside the organization (the external labour market). Internal
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recruitment is the process of filling a job vacancy through promotion or transferring anexisting employee within the organization (the internal labour market). In practice,when a job vacancy arises, many organizations allow both internal and externalapplications (see also extended internal labour market). Internal recruitment isparticularly important in ensuring there are career opportunities within anorganization. In this way, an organization can seek to retain its valued and high-performing employees by providing a career structure. However, recent trends

towards flat structures and delayering have reduced promotion opportunities andforced employees to think more about lateral career moves within the organization.[Seeemployer branding,employer-of-choice, and war for talent.]

Reference Checks Normally occur at the end of a selection process after a candidate has been offered ajob. They are straightforward checks of factual information from referees nominatedby the candidate, one of which is usually the candidate's current employer. [Seereference letters.]

Reference Letters Are statements of support for job applicants from people nominated by the applicantusually previous employers, educational establishments, or clients. Not only doreference letters provide some factual information, they often include opinions aboutthe abilities and qualities of the candidate. There are mixed views about the value ofreferences and appointments are rarely made based on references alone. However,references can be useful when treated as another piece of information in the overall

profile of the candidate being built up from various parts of the selection process.Reliability When a particular selection technique is used to decide between job applicants, it

ought to be reliable. This means that the particular technique will produce consistentresults. For example, if a person takes two separate IQ tests on different days, insimilar circumstances, they ought to yield similar results. If they fail to do so, the IQtest can be said to be unreliable. However, it is not sufficient for a selection techniquesimply to be reliable, it must also be valid. [Seevalidity.]

Selection Is the process of assessing job applicants using one or a variety of methods with thepurpose of finding the most suitable person for the organization. It is the stage thatfollows the recruitment process, whereby a pool of possible candidates has beengenerated. A wide range of selection techniques can be used and ideally these arechosen according to the type of job vacancy to be filled. The techniques are designedto reveal attributes, skills, and qualities of the individual that indicate their suitability

for the job. This means that only appropriate selection techniques ought to be used.The use of techniques that have reliabilityand validity is more likely to lead to anappropriate selection decision and the appointment of a suitable candidate. Selectiontechniques include: assessment centres, biodata, graphology, interview,psychometric tests, reference checks, and work sampling.

Structured /unstructuredinterview

A structured interview is planned in advance by the interviewers, the questions areput in a logical order, and the same format is applied to all the interviewees in order toensure consistency. An unstructured interview is unplanned, haphazard, andinconsistent. The structured interview is therefore considered a superior method ofgaining useful information and allowing comparisons to be made betweeninterviewees.

Validity When a particular selection technique is used to decide between job applicants, itought to be valid. There are three main sorts of validity that apply. (1) Content validity

refers to whether the technique is a good measure of the quality or attribute beingassessed. For example, if word processing skill were needed, getting the candidate toundertake a practical test would have greater content validity than asking them abouttheir word processing ability in an interview. (2) Predictive validity refers to the abilityof a particular technique to predict future job performance. For example, scores on anumeracy test might be a good indicator of likely future accuracy of candidatesapplying for the job of accounts clerk. (3) Face validity refers to whether the techniqueis deemed an appropriate method for assessing the applicant. For example, if anapplicant for a security guard's job was given a test for telephone skills, there wouldbe little face validity (assuming such guards rarely use a telephone in the course oftheir work). Where there is little face validity, the applicant is likely to underperform,seeing no relevance to the technique being used and the future requirements of thejob. [See reliability.]

Work Sampling Is a selection technique whereby the candidate is asked to perform a particular taskthat will be a dominant part of the job. For example, candidates for a secretarial postmight be asked to word-process a letter or input data into a spreadsheet. In other
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instances, candidates might be asked to bring along samples of their workforexample, graphic artists would have a portfolio of previous work. Essentially, worksampling is a test of skills and has high validityand reliability.

Perceptual Bias Is a generic term to describe a range of techniques that people use to make sense ofthe world. The techniques are all types of short cut that allow us to more quickly gainan understanding of a person, event, or situation. However, because they are short

cuts they also lead us to getting only a partial and possibly inaccurate impression, soconsequently the perception a person gets is a biased one and the nature of this biasdepends on the technique used and its particular effect on perception. The maintechniques are contrast effect, halo effect, primacy effect, projection, recency bias,selective perception, and stereotyping.

CompatibilityEffect

Is an error that can occur in employee selection when selectors are biased in favourof candidates who share the same demographic characteristics as themselves; forexample, white, male managers favour candidates with the same demographicprofile.

Contrast Effect People have a tendency to judge a person not in isolation but in comparison to others.In some instances, this highlights the contrast between people and our judgementsare formed not by the qualities that each person possesses but by their differencesfrom each other. In particular, this contrast effect can arise in employee selection and

occurs when selectors compare candidates against one another rather than with theperson specification for the vacancy that is to be filled. [Seeperceptual bias.]

Halo Effect An overall positive view of someone based on one or two characteristics the personpossesses. For example, in a work situation, because people are sociable, you mightassume they are good salespersons; or because they have degrees in engineeringyou assume they will be competent managers. In other words, it is a form of biaswhich overemphasizes one quality in a person and ignores other, equally importantcharacteristics. The opposite of the halo effect (sometimes called the horns effect)can also occur: you judge a person negatively because of one characteristic. Forexample, if you think modesty is a good quality in a person, you are likely to take aninstant dislike to strangers who start boasting about their achievements as soon asthey meet you. It is particularly important for managers to be aware of the halo effectwhen judging people (e.g. selection, appraisal, grievance, reward) because it is a

form of prejudice that can have serious consequences in terms of fair treatment andequal opportunity. [Seeperceptual bias.]

Prejudice Means holding negative attitudes towards a particular group, and viewing all membersof that group in a negative light, irrespective of their individual qualities and attributes.Typically, we think of prejudice being against a particular group based on gender,race/ethnicity, religion, disability, age, and sexual orientation. However, prejudiceextends much further and is frequently directed at other groups based on featuressuch as accent, height, weight, hair colour, beards, body piercings, tattoos, andclothes. It is extremely rare to find a person who is not prejudiced against any groupalthough most of us are reluctant to admit to our prejudices. [See discriminationandstereotyping.]

Primacy Effect (or primacy bias) is the tendency for a person to be influenced by the first things theysee or hear. So in a situation such as a selection interview, first impressions can havea disproportionate impact. Indeed, this has led to the belief amongst somecommentators that interviewers will typically make up their mind about a candidate inthe first 3 minutes and spend the rest of the interview finding out information to helpconfirm their initial impression. The impact of the primacy effect can be reducedthrough techniques such as interviewee training and standardized interviews. [Seebehavioural interview, perceptual bias, selection,situational interview, and structuredinterview.]

Projection Is the tendency for a person to attribute their own characteristics to other people. Inother words, if you are trustworthy and conscientious, you assume other people willbe; similarly if you sometimes lie about your achievements and let people down, thenyou assume other people do the same. You might not use projection all the time, butthere is a tendency to do so when new situations arise or you meet new people. Theproblem with managers using projection is that they can attribute false motivationsand values to employees, when it would be better to listen to what the employeeshave to say themselves about what they want from work. [See perceptual bias.]
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SelectivePerception

(or selective attention) is the tendency for all people to take more notice of things,events, ideas, and so forth that interest them. Normally, this is a useful means ofmaking sense of the world, but it can become a problem in situations such as aselection interviewbecause selective perception might mean an inaccurate picture isacquired of the candidates and poor hiring or rejection decisions are made.Techniques such as standardizing the interview procedure and having an interviewpanel can help to reduce the impact of selective perception. [See interview and

perceptual bias.]Stereotyping Is the act of judging people according to our assumptions about the group to whichthey belong. It is based on the belief that people from a specific group share similartraits and behave in a similar manner. Rather than looking at a person's individualqualities, stereotyping leads us to jump to conclusions about what someone is like.This might act against the person concerned (negative stereotype) or in their favour(positive stereotype). For example, the negative stereotype of an accountant issomeone who is dull, uninteresting, and shywhich, of course, is a slur on all theexciting, adventurous accountants in the world. A positive stereotype is thataccountants are intelligent, conscientious, and trustworthywhich is equally aninaccurate description of some of the accountants you are likely to encounter. Theproblem with stereotypes is that they are generalizations (so there are alwaysexceptions) and can be based on ignorance and prejudice (so are often inaccurate). It

is vital for managers to resist resorting to stereotyping when managing people;otherwise, they run the risk of treating employees unfairly and making poor-qualitydecisions that are detrimental to the organization. [Seediscrimination andperceptualbias.]

Week 3 Seminar Appraisal

360-DegreeFeedback

Is an appraisaltechnique designed to produce a rounded picture of the individual. It isbased on the principle that the individual must receive feedback from all angles, not just his or her line manager. So, in addition, feedback comes from subordinates,peers, work colleagues from other departments, customers/clientsin fact, anyonethe individual comes into contact with as part of his or her normal work activities.These various appraisers describe the person's competences and behaviours,

typically using an anonymous, questionnaire-based feedback form.540-degreefeedback

Appraisal The process of evaluating the performance and assessing the development/trainingneeds of an employee. In other words, there are two sides to appraisal: (1) thejudgmental side, where actual performance is compared against performance targetsand feedback (positive and negative) is given; (2) the developmental side, where theneeds of the individual are evaluated in terms of the training required to improve skilland knowledge in line with future performance objectives. The overall balance willvary from organization to organization, or even between different departments withinthe same organization. In some circumstances, an appraisal is also used to determinethe pay increase an employee will receive; thus, a favourable appraisal means ahigher reward whereas a poor appraisal leads to no pay increase. The problem with

linking an appraisal to a pay award is that it inhibits honesty and opennessemployees are unlikely to point out the problems they have had, their shortcomings,and their training needs if they think this will have a negative effect on their pay.Therefore, the judgemental side tends to dominate, and the employee might becomeoverly defensive. This is a problem because an appraisal is meant to be of mutualbenefit to the employee and employer. Both parties gain because the appraisal issupposed to be a formal, well-structured, frank discussion of what the employee canoffer and what support he or she needs from the organization, and what theorganization expects and what it is prepared to give. But if the employee is feelingdefensive, the frankness of the discussion will be compromised. Problems also occurif the appraisal is poorly structuredoften through a lack of preparation by theappraiseror if it is not treated seriously by one or both of the parties involved. Whenundertaken properly, the appraisal system involves a considerable amount of time

and effort from managers, so, not surprisingly, there are management cynics in everyworkplace who view appraisal as an unnecessary bureaucratic exercise which takesthem away from their real work. Similarly there are cynical employees who viewappraisal as an unnecessary hoop they have to jump through every year, because it
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makes no difference to how they undertake their work or the opportunities they aregiven. [See self-appraisal, peer appraisal, 360-degree feedback, attribution theory,ranking and yanking.]

Attribution Theory Explains how people evaluate the behaviour of others. All behaviour is considered tobe determined by either internal or external factors. Internal factors are within yourown controlin other words, you have chosen to behave in a particular way. Externalfactors fall outside your control, so your behaviour is limited or determined by

influences outside your control. This means that behaviour at work, for exampleperformance or absenteeism, is attributed to internal or external influences, and thisleads to positive or negative impressions of an individual. For example, if a linemanager considers an employee's poor performance to be due to internal factors(such as laziness or lack of care), he or she is likely to be dealt with more harshlythan if the poor performance is considered the result of external factors (such as poor-quality raw materials or technical problems). Interestingly, research has revealed howbiased people tend to be in their judgement of others. We have a tendency to attributethe success of other people to external factors and our own success to internalfactors. Similarly, we tend to attribute the failure of others to internal factors and ourown failings to external factors. Knowledge of attribution theory and awareness ofthese attribution errors can be useful to managers in the appraisalprocess when theyassess their employees' performance and when they ask their subordinates to

undertake self-appraisalandpeer appraisal. [See perceptual bias.]

BalancedScorecard

A technique for measuring organizational success and identifying areas forimprovement and action. The idea of the balanced scorecard came from managementtheorists Robert Kaplan and David Norton, who recognized that organizations oftenfocused too much on financial criteria for performance management, therebyneglecting other features that help to deliver competitive advantage. Their solutionwas to devise a method by which managers can translate their vision into clearmeasures of success through balancing the financial perspective with three other,equally important perspectives: the customer, the internal processes, and innovationand learning. Each perspective requires the managers to identify different factors thatare critical to success, and to devise key performance measures for these factors.The resultant balanced scorecard will be a template for the organization to evaluate

its overall performance and identify areas of strength and weakness. Of course, themeasures on the scorecard will differ from organization to organization, but theprinciple of balance across these measures will be the same.

BehaviouralObservationScales (BOS)

A technique for evaluating the performance of an employee which can be used aspart of the appraisal process. Like behaviourally anchored rating scales, the BOStechnique involves a process of identifying the key tasks for a particular job, but thedifference is that employees are evaluated according to how frequently they exhibitthe required behaviour for effective performance. The scores for each of theseobserved behaviours can then be totalled to produce an overall performance score. Insuch instances, the various measures of behaviour are normally weighted to reflectthe relative importance of the measure to the overall job.

Behaviourally

Anchored RatingScales (BARS)

A technique for evaluating the performance of an employee which can be used as

part of the appraisal process. The technique involves: (1) breaking down a particularjob into its key tasks (performance dimensions); (2) identifying a range of possiblebehaviours that can be displayed by an employee in undertaking each task; (3)placing these behaviours on a scale ranging from ineffective performance to excellentperformance; and (4) assessing the jobholder (employee) against these scales foreach of the tasks. As a consequence, a profile of job performance is created for eachemployee covering the various aspects of his or her work. Typically, the process ofdevising the performance dimensions involves jobholders themselves, and this givesgreater authenticity to the rating scales. [Seebehavioural observation scales (BOS).]

Body Language Is the set of non-verbal signals a person transmits through their posture, eye contact,gestures, and facial expressions. A huge amount of information is transmitted andsome psychologists suggest that training in interpreting body language is an essentialskill for managers to have in any interview situation. For example, it is suggested that

when a person is lying or is withholding information they may use certain handgestures, such as concealing their mouth, or may blink for slightly longer than normal.However, it is important to note that there are significant cultural differences in the useof body language. For instance, maintaining eye contact when you are being asked a

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question is considered polite in some cultures but rude in others. These culturaldifferences mean that an over-reliance on body language could lead to amisjudgement of the person and accusations of racial discrimination.

Central TendencyBias

Can occur when managers are evaluating the performance of their staff (typically byusing a 5-point scale) but fail to differentiate sufficiently between individuals. Thetendency is to score everyone around the midpoint of the scale, and not use theextremes. The result of this is sometimes called the central tendency error. In order to

counteract the central tendency bias, some organizations use a forced distribution,which obliges managers to place a certain percentage of employees at the top andbottom of the scale.

Competency A competency-based approach to managing people focuses on the skills and talentsneeded to be able to perform a particular task to a certain standard. The assessmentof competencies is useful for various aspects of the management of humanresources: setting standards of performance that can be expected from employeesand appraising them against such standards; assessing the training and developmentneeds of individual employees; and identifying the skills, abilities, and characteristicsneeded when recruiting and selecting new employees. The issue of a competency-based approach has become popular in the management literature, but the problem isthat different writers define the term in their own distinct ways. And, to complicatematters further, some authors argue there are differences between the meanings of

competence and competency, or competences and competencies. The importantpoint is not to get worried about the language, but to recognize that the generalapproach taken by most commentators is to break competency down into twocategories: behaviour based or work based. Behaviour-based competencies arepersonal characteristics/attributes that contribute to effective job performance (e.g.interpersonal skills, attitudes, motivation). Work-based competencies are specificskills and abilities required to perform the job to a specific standard (e.g. the use ofspreadsheet software, fluency in spoken Japanese, management of a budget). Afocus on competency not only allows for the development of employees, it alsoprovides a new means of rewarding people; thus there has been a growing interest insystems ofcompetence-based pay.

Cronyism Is the tendency of managers to treat more favourably those employees they like andwith whom they have established a good relationship. [See equal opportunity and old

boys' network.]ForcedDistribution

Or forced ranking is a technique used by some organizations when evaluating theperformance of staff. Typically, in performance evaluation systems, managers will ratethe individual performance of each member of staff and place them in a performancecategory (usually on a 5-point scale) ranging from exceeding performanceexpectations to seriously underperforming. A forced distribution or ranking requiresmanagers to put a designated percentage of staff within each category and this isdesigned to prevent managers from taking the easy option by rating everyone in themiddle (the central tendency bias). Advocates claim that a forced distribution orranking can raise performance and help organizations retain control of total salarycosts because the proportion of employees receiving a given level of salary increasecan be calculated in advance. Critics argue that not everyone is placed in the correctcategory, so at the top end some will be deemed high achievers when they are not,

whilst at the bottom end some will be classified as underperforming when in fact theyare adequate. The technique of using a forced distribution becomes particularlycontentious if performance evaluation is linked directly to reward. [See bonus,bouncing, performance-related pay, and ranking and yanking.]

Halo Effect An overall positive view of someone based on one or two characteristics the personpossesses. For example, in a work situation, because people are sociable, you mightassume they are good salespersons; or because they have degrees in engineeringyou assume they will be competent managers. In other words, it is a form of biaswhich overemphasizes one quality in a person and ignores other, equally importantcharacteristics. The opposite of the halo effect (sometimes called the horns effect)can also occur: you judge a person negatively because of one characteristic. Forexample, if you think modesty is a good quality in a person, you are likely to take aninstant dislike to strangers who start boasting about their achievements as soon as

they meet you. It is particularly important for managers to be aware of the halo effectwhen judging people (e.g. selection, appraisal, grievance, reward) because it is aform of prejudice that can have serious consequences in terms of fair treatment andequal opportunity. [Seeperceptual bias.]

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Peer Appraisal Is the technique of evaluating the performance of your work colleagues. Traditionally,the appraisal process relies on the views of managers, but some organizations arerecognizing the value of getting a wider range of opinions about an employee'sperformance, and so work colleagues are an important source of information. Ofcourse, no organization is likely to rely entirely on peer appraisal, but it is used inconjunction with the line manager's evaluation of performance and the employee'sown assessment of his or her performance (self-appraisal). [See 360-degree

feedback.]Performancemanagement

Is the process of linking the overall business objectives of the organization withdepartmental objectives, team objectives, and individual objectives. It involves settingtargets, constantly reviewing progress towards those targets, and taking remedialaction where there are training/development shortfalls. Typically, to keep peoplefocused on their objectives, the process is underpinned by frequent employeefeedback and performance-related pay. So how does performance management differfrom appraisal? Basically, appraisal systems focus on each employee separately inorder to review his or her performance over the previous year and set new objectivesfor the next twelve months. In contrast, performance management systems have anorganization-wide approach that tries to integrate various objectives across thebusiness and established procedures to ensure progress towards these objectives isconstantly monitored. In practice, many organizations combine appraisal with

performance management, and the particular systems will vary greatly fromorganization to organization. Performance management has become more popularduring the last decade, not least because it provides (in theory) a method of achievingbetterstrategic integration. [See alsomanagement by objectives.]

PersonalDevelopment Plan

An action plan devised for a particular employee that sets out a programme of trainingand learning (both on and off the job) that will allow the employee to increase his orher competencies in line with the organization's requirements. For the individual, thismay have the benefit of improving his or her career opportunities within theorganization. The plan should be devised in partnership with the employees so that itcan incorporate their interests and reflect their willingness to develop particularaspects of their work roles. [See human resource development.]

Recency Bias Is a common distorting effect within systems of performance appraisal. It refers to theappraiser assessing employee performance, not on work undertaken across the full

performance management cycle, but only on recent events or activities that can bereadily recalled. Recency bias can be countered by keeping a record of appraiseeperformance over the full period of work that is being appraised. [See halo effect andperceptual bias.]

Self-Appraisal Is the technique of evaluating your own performance and then discussing this withyour line manager. Some organizations use this technique as part of their appraisalprocess because it provides employees with an opportunity to reflect on their ownperformance and explain the reasons behind their own evaluation. This is thought tolead to a more positive and less judgemental appraisal interview. [See peerappraisal.]

Trait Rating Or graphic rating scales. A technique for evaluating the performance of an employeewhich can be used as part of the appraisalprocess. The technique involves listing thedesirable traits that the jobholder should possess (such as reliability, integrity, drive,

leadership ability) and rating (e.g. on a five-point scale) each employee for each ofthese traits. These trait scores can then be aggregated into overall performancescores. This rating method is relatively simple to develop and administer, but suffersfrom two main drawbacks. (1) It is judgmental, rather than developmental, especiallysince the appraisee has no input into the grading decisions. (2) It is questionablewhether some traits can be accurately and fairly rated. For example, whilst it might bepossible to judge something like productivity, is it really possible to rate integrity ordrive on a five-point scale? In order to address this problem, some organizations ratethe employee's performance on job duties (e.g. keyboarding skills, dealing withcustomers, running meetings) rather than traits. Other organizations reject the methodentirely and instead adopt one of the alternative techniques such as behaviourallyanchored rating scales (BARS) orbehavioural observation scales (BOS).

Week 4 Seminar Training & Development

Basic Skills Are the minimum levels of literacy and numeracy that are required of people working
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within a national economy. In the USA, Canada, Britain, and other countries, concernabout the economic cost of the absence of basic skills amongst a considerableproportion of the working population has led to policy initiatives to combat adultilliteracy and innumeracy. Many of these programmes are targeted at the workplaceand, in the UK, include attempts to use union learning representatives to directworkers with poor basic skills to education and training initiatives. [See vocationaleducation and training.]

Blended Learning Is an approach to training and development that seeks to mix a range of methods inorder to achieve the most appropriate blend for the situation. It will mix on-the-joband off-the-job methods; use e-learning alongside face-to-face/classroom learning;and combine traditional with innovative approaches. [Seetraining.]

Coaching Is a regular series of training or development sessions where an experiencedemployee with considerable expertise guides a novice. Since coaching takes place ona one-to-one basis, it provides a more intense training and learning experiencecustomized to the specific needs of the individual. It is also a more formal andregulated method of passing on expertise through on-the-job training than theinadequate practice of sitting-with-Nellie. This means the coaches have to bespecially selected and trained to train, so that they can pass on their skills andknowledge effectively.

Competency A competency-based approach to managing people focuses on the skills and talents

needed to be able to perform a particular task to a certain standard. The assessmentof competencies is useful for various aspects of the management of humanresources: setting standards of performance that can be expected from employeesand appraising them against such standards; assessing the training and developmentneeds of individual employees; and identifying the skills, abilities, and characteristicsneeded when recruiting and selecting new employees. The issue of a competency-based approach has become popular in the management literature, but the problem isthat different writers define the term in their own distinct ways. And, to complicatematters further, some authors argue there are differences between the meanings ofcompetence and competency, or competences and competencies. The importantpoint is not to get worried about the language, but to recognize that the generalapproach taken by most commentators is to break competency down into twocategories: behaviour based or work based. Behaviour-based competencies are

personal characteristics/attributes that contribute to effective job performance (e.g.interpersonal skills, attitudes, motivation). Work-based competencies are specificskills and abilities required to perform the job to a specific standard (e.g. the use ofspreadsheet software, fluency in spoken Japanese, management of a budget). Afocus on competency not only allows for the development of employees, it alsoprovides a new means of rewarding people; thus there has been a growing interest insystems ofcompetence-based pay.

Computer-AssistedInstruction (CAI)

Is a training technique where the individual is guided by a computer program throughthe information to be learned. The method is flexible because trainees can progressat their own speed, skip material they are already familiar with, and undertake thetraining at their own convenience. The programs provide tests and assessment ateach stage and provide immediate feedback to the trainee.

Continuous

Learning

Is the process through which employees and managers meet the challenge of

perpetual change that faces many contemporary organizations in a highlycompetitive, turbulent environment. Knowledge and skills quickly become obsolete, sothere is a requirement to update them constantly through training and development.Learning becomes an important feature of the organization, and contributes at theleast to its competitive survival and, at best, to its competitive advantage. Continuouslearning is a vital component of the learning organization. [See lifelong learning.]

ContinuousProfessionalDevelopment(CPD)

Is the concept that the members of a profession should commit themselvesindividually to improving their knowledge and understanding throughout their careers,and keeping up to date with all developments within their chosen professions. Thisalso entails learning from their own experiences and making a conscious effort toidentify deficiencies and weakness in order to redress these through formal trainingand development. [Seecontinuous learningandreflective practitioner.]

Employability Is the possession of marketable skills and attributes by an employee that are in

demand from employers. The seeming decline of the job for life has led to increasedinterest in the concept of employability and, according to some, a new deal isemerging in business, in which employers provide training and employee

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development opportunities to allow employees to maintain employability in return forcommitment and effort. [Seeflexicurity and psychological contract.]

EmployeeDevelopment

Is the system of providing opportunities for employees within an organization to reachtheir full potential (through improving skill and competency), and become of greatervalue to the organization. Typically, employment development incorporates three setsof activities: training, management development, and career management. Thepolicies and techniques aimed at developing employees differ widely between

organizations. Whilst many organizations claim that they value their employees, agood test of whether this is anything more than rhetoric is to assess the organization'semployee development systems and budget. If employees are truly valued, then theorganization will be willing to commit resources to them through employeedevelopment systems.

Hard Skills Are competencies that employees possess such as numeracy, literacy, fluency in aforeign language, and specific job-related technical abilities (operating a machine,creating a spreadsheet, touch-typing, driving, dressing a wound, and so forth).Typically these skills are relatively easy to measure, and are often validated withsome form of qualification. More recently, there has been a shift in emphasis towardsthe need forsoft skills in addition to technical abilities. [Seecompetencyandtraining.]

Human Capital Is the knowledge, skills, and abilities that workers possess and which have beenacquired through education, training, and experience both within and beyond the

workplace. It is assumed by many neo-classical economists (see human capitaltheory) that differences in human capital explain differences in earnings betweenworkers, such as the gender pay gap between men and women. Human capital canbe of different forms and a common distinction that is drawn is between firm-specifichuman capital (knowledge, skills, and abilities that can only be used and only havevalue within one organization) and transferable human capital that has a generalvalue to a multiplicity of potential employers. If workers possess only firm-specifichuman capital, they can find themselves highly dependent upon and effectively tied totheir employing organization.

Human CapitalTheory

Is based on the assumption that individuals can affect their value in the labour marketby choosing whether or not to take advantage of educational opportunities andtraining. If they do so, they increase their human capital and consequently willincrease their value to employers. Human capital theory suggests employees should

be treated as individuals with specific sets of skills and abilities, so it emphasizescompetence-based payas an effective remuneration system. Proponents argue thisleads to a very meritocraticsystem and helps to achieve equal opportunitybased ontalent and ability, and regulated by a market economy. Critics argue that one of themajor problems with the theory is that it assumes that everyone has the same chanceto invest in their human capital, whereas, in reality, people have different lifeopportunities that are outside their control from birth, not least because of the relativewealth or poverty of their parents. In other words, human capital theory is not asmeritocratic as it might first appear.

Human ResourceDevelopment(HRD)

Is the process of encouraging employees to acquire new skills and knowledgethrough various training programmes, courses and learning packages. For theorganization, the aim is to build competency amongst its employees, which willcontribute to achieving the overall business objectives. For the individual,

development provides opportunities that might be beneficial in four ways. (1) It makesthe employee more valuable to the organization and thereby improves job security.(2) It enhances career opportunities within the organization. (3) It increases anindividual's employability outside the organization because of his or her broaderskill/competency base. (4) If it broadens the scope and responsibility of work, it canraise the intrinsic rewardemployees derive from their jobs. If HRD is to be successful,it requires commitment from senior management in terms of allocating sufficientresources. In addition, line managers increasingly are expected to be involved in thedelivery of training (seedevolution) and so their commitment to HRD is vital. Criticsargue that HRD frequently requires a long-term focus, whereas many organizationshave short-term objectives (often set by tough financial performance targets) and,consequently, are reluctant to commit resources to HRD initiatives (see short-termism). Indeed, when there is a downturn in the market, the training/development

budget is typically the first area where managers in an organization seek to makecutbacks. [Seepersonal development plan.]

Leitch Review A UK government commission that reported in 2005 and 2006 on the likely skill needs
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of the UK economy in 2020. The Leitch Review of Skills identified a need to raise theskill level of the UK workforce, and a particular need to raise the rate at which existingworkers acquired new skills. According to Leitch, the UK suffered serious deficienciesin skills compared to other developed economies and needed an urgent programmeto correct this comparative disadvantage. The review set a number of ambitioustargets for upskilling the workforce, including 80 per cent of adults to have level 2qualifications by 2010 and a 95 per cent rate of functional literacy and numeracy by

2020 (see basic skills). The main recommendations of Leitch involved strengtheningthe demand-led nature of the UK vocational and education and training system.Sector Skills Councils were to be given stronger powers to shape the content ofvocational qualifications and decide which would be funded from the public purse. Itwas also suggested that an employer-led Commission for Employment and Skills beestablished, that funding for adult vocational education should be exclusivelychannelled through the Train to Gain and Adult Learner Account programmes, andthat a voluntary employer Skills Pledge be established to train all employees tonational vocational qualification level 2 by 2010. The Leitch report considered butdecided against recommending the introduction of a compulsory training levy for UKemployers, though advised that this issue be revisited in 2010. All of Leitch's mainrecommendations were accepted by the UK government in 2007.

Mentor A formal role that can be taken by anyone with experience in an organization. It is a

person who takes a long-term, direct interest in the development of a more junioremployee, and who is there to guide, listen and advise. The mentor is not normallythe employee's line manager, so there is no direct reporting relationship between thetwo individuals.

Mentoring Is the process, whereby a senior employee takes an active role in developing a juniorcolleague. Typically, this occurs at managerial level or amongst professions. Thementor provides advice on how the mentee can develop his or her skills,competencies, knowledge, and experience in order to progress along a successfulcareer path. As well as giving advice, the mentor might also prove useful in providingcontacts that help the mentee to engage in the process ofnetworking.

NationalVocationalQualifications

(NVQs)

And Scottish National Vocational Qualifications (SNVQs) are certificates ofcompetence for particular occupations and professions. There are five levels within anNVQ and the standards for each of these levels are established through industry lead

bodies, which bring together employers, professionals, trade unions, and otherexperts. Skills are acquired through on-the-job training and accredited by the NVQ.This means achievements beyond just educational qualifications can be recognizedthrough nationally agreed standards for each occupation and each industry.Theoretically, NVQs provide employees with wider opportunities in the labour marketthan firm-specific training schemes or educational qualifications alone.

Outward BoundCourse

(outdoor training/learning) are sets of physical activities in which participants work asteams to complete various tasks, such as building a bridge to cross a river ororienteering through a forest. They have become increasingly popular as a tool formanagement developmentin particular developing leadership skills, team-building,and group problem-solving. The advantage of outward bound courses is that theactivities are normally fairly simple and not related to the participants' day-to-day jobs,so the problems and deficiencies of the team can be analysed with the help of a

facilitator, thereby leading to collective and individual learning. The disadvantage isthat the artificial situations can make it a poor simulation of how the team mightbehave in a work environment, faced with complex, job-related problems. Moreover,there is sometimes a credibility gap which leads some participants to fail to see anylink between the outward bound course and their job requirementsthus a personmight protest, How does building a raft to cross a river in mid-Wales help me tomanage my sales team? Only by clearly specifying the learning objectives andundertaking thorough debriefing sessions can such scepticism be reduced. [Seeexperiential learning.]

PersonalDevelopment Plan

An action plan devised for a particular employee that sets out a programme of trainingand learning (both on and off the job) that will allow the employee to increase his orher competencies in line with the organization's requirements. For the individual, thismay have the benefit of improving his or her career opportunities within the

organization. The plan should be devised in partnership with the employees so that itcan incorporate their interests and reflect their willingness to develop particularaspects of their work roles. [See human resource development.]
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Shadowing is a training technique, whereby trainees spend time with experienced employeesclosely observing how they undertake their work, and then undertaking the tasksthemselves (with guidance from the experts). Typically, it has been used to familiarizetrainee managers with the work of various departments to give them anunderstanding of the overall process. [See training.]

Sitting-With-Nellie Is a term used to describe poor-quality on-the-job training where a trainee is notinstructed by a qualified trainer but instead is expected to learn how to do the job by

observing someone who has been doing the job for years (i.e. Nellie). Such training isnot planned or systematic, but instead is haphazard and variable. Although thetrainee might glean much of Nellie's expertise, he or she will also pick up her badhabits. And although Nellie might well be personable, she does not necessarily havethe skills to train others. [See training.]

Soft Skills Are competencies that employees possess associated with activities such ascustomer handling, communication, problem-solving, and teamworking. According tovarious surveys, these soft skills are considered by employers to be of very highimportance and (in the UK) sadly lacking amongst new recruits. The definition of softskills sometimes includes loyalty, enthusiasm, punctuality, and a strong work ethic,although critics argue that these are not really skills but rather qualities or attributesthat someone has and may (or may not) choose to display at work. [See competency,hard skills, andtraining.]

TalentManagement

Is the process of identifying skills and development potential amongst existingemployees and finding promotion opportunities for them within the organization,through the management hierarchy. It combines the use of appraisal, training, anddevelopment to ensure that talented employees are offered challenging andrewarding tasks and roles, thereby increasing the chances they will become loyal tothe organization because they see a potential career track. Advocates argue that bynurturing internal talent, the organization can reduce the costs and risks of recruitingexternally and improve organizational commitment. [See human resource planningandwar for talent.]

Training NeedsAnalysis (TNA)

Is the technique of assessing the training required to fill the gap between what skillsand knowledge are currently possessed by employees, and what ought to bepossessed. A training needs analysis can therefore not only address presentdeficiencies, it can also act as a developmental tool to allow managers to project

future needs in line with the strategic aims of the organization. Typically, the analysiswill take place at three levels: first, the corporate level in order to establishorganizational needs in line with the overall business objectives (see human resourceplanning); second, the departmental level, addressing the training required bydifferent functional groups, project groups, and teams; third, the individual level,establishing specific employee requirements. [See appraisal.]

Training On-The-JobOff-The-Job

Is the process of changing the skills, attitudes, and knowledge of employees with thepurpose of improving their level of competence. It is a planned process, usuallyinvolving a series of stages where incremental improvements can be identified. Ittakes two main forms. (1) On-the-job training whereby an employee receivesinstruction within the place of work, usually through observing the tasks, being guidedthrough them by experts, and then practising them. (2) Off-the-job training wherebyan employee is instructed away from the place of work, either in a training room on

the premises or at a separate location (such as a college). This training is more oftentheory based and might even take the form of self-learning packages. [See trainingneeds analysis.]

Transferable Skills Are skills that are developed in one context but which can be used in other contexts.Traditional apprenticeship, for instance, allowed craft workers to develop skills thatcould be used by a broad range of employers. The opposite of transferable skills arecompany-specific skills that are appropriate to a particular technology or businessprocess but which attract no premium on the external labour market.

VocationalEducation andTraining (VET)

Consists of those elements of the state education system plus the voluntary trainingactivities of business and other organizations that prepare people for work. In the UK,important elements of the VET system include the Learning and Skills Council,National Vocational Qualifications, the Commission for Employment and Skills, SectorSkills Councils, the University for Industry, and the New Deal programme. The

performance of the UK's VET system has been criticized repeatedly in recent years,leading to a succession of reform initiatives. It is often believed that Germany has amuch more successful system of VET, based largely on apprenticeship, which
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supports high levels of basic competence amongst the working population. [SeeLeitch Review.]

Week 5 Seminar Reward

Base Pay Base or basic pay is the rate of pay for a job or grade in an organization, to which canbe added various supplements, benefits, bonuses, and allowances. Base pay,

therefore, is the core element of remuneration that reflects, at least notionally, themarket value for a particular type of labour. Advocates of the new pay assert thatbase pay should be kept to a relatively low level, in order that employees becomedependent on variable pay, which is contingent on performance, to make up theirearnings.

Bonus A payment that is made in addition to the basic wage orsalary and which, in mostcases, is linked to the achievement of a performance target or behavioural standardof some kind. The defining feature of bonuses is that they are supplementarypayments, usually in cash, which are not consolidated into the basic salary or wage;that is, they have to be re-earned afresh in each bonus period by the employee.Bonuses are a constitutive element in a wide range of payment systems and mayform part ofprofit-sharing, merit pay, sales incentive, and other performance-relatedsystems of remuneration. Reliance on bonuses has increased in recent years as a

result of the interest in variable pay.Broad-Banding Is the replacement of a gradedpay structure comprised of multiple short grades with

a small number of broad pay bands, usually four or five in total. These broad bandsprovide extensive scope to reward performance, skill level, and market value and areassociated with a switch to a more individualized system of reward management inwhich there is emphasis onpaying the person as opposed to the job. Broad-bandingis associated with the delayering of organizations and the introduction of a flatterorganizational structure in which there is emphasis on team-working and functionalflexibility. Within a flat organization (see flat/tall structure), there is less scope toreward employees through promotion through successive grades, and broad-bandingprovides an alternative mechanism for continuing salary progression. As such, it cansupport continuing professional development in high-skill jobs and alleviate theproblem of skilled or professional workers seeking managerial promotions in order to

secure higher earnings. Broad-banding is also advocated as a way of promotinglateral careerdevelopment in which employees move across occupational boundariesat the same organizational level but receive salary progression for doing so. Finally,broad-banding is associated with the movement towards greater line managementresponsibility for personnel decisions, as line managers typically exercise discretionover the placement of individuals within the band. [Seegrade.]

Cafeteria Benefits A form of flexible benefits which provides maximum choice to employees indetermining the form of their remuneration package. Each employee chooses thebenefit package that suits their individual needs from the menu offered by theemployer. The logic behind this is that employees at different stages in the lives orwith different commitments and interests will want different benefits packages, ratherthan a standard package. Employees can choose which particularbenefits to receiveup to a predetermined value. Despite the attractiveness of this option, cafeteria

benefits remain relatively rare owing to their administrative complexity.CognitiveDissonance

Is the mismatch between thought and actions in an individual, coined by socialpsychologist Leon Festinger. It can occur in any aspect of life but in the workplace it isespecially difficult for some people to handle because it can occur as a result ofaspects over which they have no control. For instance, a call-centre worker mighthave to be polite to an abusive customer when they really want to put the phone downor shout abuse back at them. The inconsistency between thought and action isuncomfortable for most people, so there is a tendency to try to reconcile this either bychanging thoughts (attitudes) or taking actions. Since the call-centre worker cannotshout at the customer, they could find some other way of taking action to getting backat the customerputting them on hold, transferring them, adopting a patronizingvoice. Alternatively, the worker might reconcile the dissonance through changing theirattitudefor instance, depersonalizing the encounter (just someone getting at thecompany).

Competence-Based Pay

A payment system that relates salary progression or a cash bonus to the display ofcompetencies by individual employees. Systems originate in the identification of
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competency, understood as the key attributes and behaviours of employees thatunderlie good performance in a particular organization or job. Competency mightinclude: team management or membership, priority setting or personal organization,networking, customer service orientation, staff and personal development, changeorientation, performance management, and communicating information. Individualemployees can be rated against a list of this kind through an appraisal procedure andallocated an overall competency assessment. This assessment can then be used to

determine the award of bonuses or progression through apay range orsalary matrix.Interest in competence-based pay has risen as a result of the wider use ofcompetency frameworks within human resource management. Its supporters claimthat it can reinforce key patterns of behaviour and so raise business performance but,like any system of appraisal-related pay, competence-based pay can be costly todesign and administer and is vulnerable to charges of subjectivity and bias. [See meritpay.]

Differential The advantage in the rate of pay or earnings enjoyed by a higher-paid group ofemployees over a lower-paid group. Differentials are usually expressed as apercentage figure or, where the differential is very large, as a multiple of the lowerrate of pay. Skilled manual workers, for instance, might enjoy a 30 per cent differentialover unskilled manual workers, whilst the differential over other employees of seniorexecutives might be equal to ten times the median salary within the organization.

Differentials may be calculated within an organization or across an industrial sector orentire economy, and whilst they are usually calculated to examine differencesbetween occupational groups, the concept can also be applied to differences betweenthe sexes, ethnic groups, the able-bodied and disabled, and the more and lesseducated. From an organizational perspective, it is common to draw a distinctionbetween internal and external differentials (note these may also be called internal andexternal relativities). An internal differential or relativity is the advantage in pay of anoccupational group or grade compared with other occupations or grades within theorganization. An external differential or relativity is the advantage in pay overmembers of the same group working for other org

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