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MHR Final Review Chpts 7-13.pdf

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Department
Human Resources
Course
MHR 523
Professor
Rasha Nasra
Semester
Winter

Description
Chapter  7  Orientation,  Training  &  Development  and  Career  Planning   What  are  the  organizational  and  employee  benefits  that  results  from  a  comprehensive   onboarding  process?     Onboarding: process of integrating and acculturating new employees into the organization and providing them with the tools, resources, and knowledge to become successful and productive • Includes orientation, socialization, and training and development activities • Begins w/ employment offer and lasts throughout employee’s first year • Purposes to help build relationships w/ peers and experienced workers o Help them feel welcome, understand the culture, leverage skills and talent • Results: business results, increase job satisfaction, retention, employee engagement, reduce time new hire needs to get caught up, faster productivity Onboarding Model Principles • Align to the mission and vision • Connect to culture, strategic goals and priorities • Integrate across process owners • Apply to all employees Process Phases & Key Activities           a welcome  to  employeeso missions  and  values managerial  ct   ytraining  ssential   a employee   positive     t einvolvement     d y contributions   s logistics    ▯irst  dat leadership   senior   Set  performance   0and  provide  feedback Provide  formal  and     e sexpectations  and  job   1 informal  feedback  on    vance/online  portal  organization  and  of▯ice     tthrough  new  hire   performance   o access   norms   Assign  Meaningful   ssurvey  and  other   Create  employee   r Prepare  for  employeea Introduce  employee   work   1means   development  plan   P  onsor   Communicate   s Meet  immediate   resources  or  network   1 requirements  for   required  for  work   employment   Benefits  of  orientation  programs   Orientation programs : programs that familiarize new employees with their roles, the org, its policies and other employees • Reduce turnover, errors and saves time • Develop clear job and organizational expectations thus improving job performance • Attain acceptable job performance faster • Increase organizational stability • Reduce employee anxiety • Reduce grievances and instances of corrective discipline measures Start-up costs: additional costs associated w/ a new employee because the new e mployee is typically less efficient than an experience worker; the new worker also requires additional supervisory time Socialization: the process by which people adapt to an organization through learning to understand and accept the values, norms, and bel iefs held by others in the organization         Content  of  orientation  programs   • Organizational issues o Benefits • Role expectations & o History o Training & Performance o Org structure education o Job location o Code of benefits o Job tasks conduct o Vacation/ o Job safety • HR related topics holidays Evaluating  effectiveness  of  orientation  programs   • Reactions from new employees • Effects of socialization on job attitudes and roles • Degree to which program is economical • Continued use or orientation resources Purpose  of  training   • Competing globally against low wage companies has resulted in reduction of employees. Greater flexibility requires multi-skilled or cross trained employees • Multi-skilled employees want to be paid according to their competencies not job performed. Organizational environment must support and foster lifelong learning • Increased immigrants, training required for new arrivals. Diversity training to alert sups and employees against stereotypes and prejudices • Changing info tech, requires fresh skills and training The  training  system   Needs assessment: a diagnosis that presents problems and future challenges that can be met through training or development • Training needs assessment diagnoses present problems and/or future chall enges that can be met through training or development • Training needs assessment looks for performance gaps • Once gaps are identified, training objectives are created • To max benefits, org must concentrate efforts on people and situations that can benefimost • Changes in external environment, or strategy creates a need for training Training Objectives • Statements serve as the standard against which individual performance and the program can be measured. Objectives should state: o Desired behaviour o Conditions under which it is to occur o Acceptable performance criteria Program Content • Shaped by needs assessment and learning objectives • Content may seek to teach specific skills, provide knowledge, or influence attitude • Participants must view content as relevant to their needs or motivation to learn will be low Learning Principles Learning principles: guidelines to the ways most ppl learn most effectively 1. Participation: learning is quicker and longer lasting when learners participate, 2. Repetition: etches a pattern into our memory 3. Relevance: helpful when material is meaningful 4. Transference: application of training to actual job situations 5. Feedback: gives learner info about their progress, motivates them to adjust behaviour Learning curve: A visual representation of the rate at which one learns given material Transferences: applicability of training to job situations; evaluated by how readily the trainee can transfer the learning to his or her job Learning organization: an organization that has an enhanced capacity to lea rn, adapt, and change Knowledge management : the ability to utilize people’s knowledge, that is, information stored in employees’ heads Talent: additional costs associated w/ a new employee because the new employee is typically less efficient than an experi ence worker; the new worker also requires additional supervisory time Human resource development (HRD) : a part of HRM that integrates the use of training and employee and career development efforts to improve individual, group and organizational effectiven ess Training  techniques   Method depends on: 1. Cost-effectiveness 2. Desired program content 3. Appropriateness of the facilities 4. Trainee preferences and capabilities 5. Trainer preferences and capabilities 6. Learning principles On-­‐the-­‐job  and  off-­‐the-­‐job  training   On-the-job training (OJT): training received directly on the job, used primarily to teach workers how to do their present job • Job rotation o Cross training: training employees to perform operations in areas other than their assigned jobs • Apprenticeships: training programs, generally for tradespeople, in which a new employee learns from a more experienced employee • Coaching: a less formal training experience than an apprenticeship, coaching generally involves a supervisor or mgr. providing a model for a new em ployee to observe and emulate Off-the-job training • Lecture and video presentations • Vestibule training: training opportunities that utilize simulated workstations so that new employees can learn about their job without interfering with activities at the act ual workstation • Role playing: a training technique that requires trainees to assume different identities in order to learn how others feel under different circumstances • Case study • Self-study and programmed learning • Laboratory training: a form of group training primarily used to enhance interpersonal skills Web-Based Learning/E-learning • Computer-based training using internet/intranet • Web based delivery systems: o Web/computer training o Web/electronic performance support o Web/virtual synchronous o Web/virtual asynchronous Popular Web-Based Tools • Virtual Reality: use of modern computer technology to create 3D environment • Blog: a web log—an online journal, diary, or serial published by a person or group of ppl • RSS (Rich Site Summary) • Podcasts • Wikis • Social networking sites Benefits  &  challenges  of  online  learning   Benefits • Ability to provide “just -in-time” training info • Allows learners to learn when it’s convenient • Targets instruction to what learners needs to know • Offers learners flexibility in terms of page content & various media rich options Challenges • Development is time consuming • Technical and connection issues Relationship  between  training  and  development   • Training prepares people for their present job (short -term) • Development prepares people for future jobs Differentiating between training and development Training Development Time Frame Short-term immediate Mid to long term Focus of activity Current job/skills development Future roles and responsibilities/ competencies development— multiple learning experiences Range Individual Group/organization Goal Enhance skills in current job Optimize potential—future development/growth opportunities Examples of methods used Programmed instruction, role Coaching, counselling, plays, job shadowing, simulation, mentoring, conferences, case self-study study, simulations, job rotations Steps  to  create  employee  development  plans  (EDP)   Competencies: skills, knowledge and behaviours that distinguish high performance in a board role, function or level of the organization Strategic HRD: identification of needed skills and active management of employees’ learning in relation to corporate strategies Employee development: process of enhancing an employee’s future value to the organization though careful career planning 1. Assess employees’ needs 2. Link competencies and skills to business goals 3. Identify learning and development activities 4. Determine resources 5. Identify barriers Explain  the  differences  between  cognitive,  behavioural,  and  environmental   approaches  to  strategic  employee  development   Behavioural: attempts to change behaviour (ex. Management/interpersonal style) ** greater impact than cognitive • Used to include any knowledge and skill acquired by an employee though practice • Behavioural strategies: aim at making individuals more competent in interacting with their environment o Ex. With colleagues, subordinates, or customers • Behaviour modelling: teaches desired behaviour effectively by providing trainee w/ vivid and detailed display of desired behaviour often with s trong social reinforcement • Leadership grid: attempt to change dominant management style in an organization —to make mgr. more person or task oriented to increase their effectiveness • Sensitivity training: makes mgr. more aware of the impact their own behavio ur on others or to prepare them for more effective interactions w/ foreign staff • Team building: helps members diagnose group processes and devise solutions to problems • Mentoring: establishes close relationship w/boss or someone more experienced Cognitive: being concerned with altering thoughts and ideas (knowledge, new processes) ** least effective • Uses: lectures, seminars and academic education • Increases knowledge and expertise but does little to change behaviours, attitudes and values Environmental: strategies to change attitude and values ** most promising • Job rotation • Organizational development: system -wide effort applying behavioural science knowledge to planned creation and reinforcement of organizational strategies, structures and processes • Learning organization: creates a knowledge network where employees can share ideas and learn about content important to their development • Temporary assignments • Employee exchange programs • Matrix management • Project teams • Internal consulting (or troubleshooting assignments) • Lateral transfer • Job redefinition/classification • Cross cultural management training • Diversity training Evaluation  of  training  &  development   4 Types of evaluation criteria 1. Reaction: aka happiness or smile sheet “How satisfied are you with the program?” “Would you recommend it to a colleague?” 2. Knowledge/Skill: reliability assessed only if before and after tests are used 3. Behaviour: look at “actions” of employee to assess behavioural change. Use of self -reports and observations by others 4. Organizational Results: time difference, difficult to measure true effectiveness Purpose  of  cost  benefit  analysis   Cost-benefit analysis: analysis undertaken to assess the cost -effectiveness of a project or program Career  planning  &  development   Career planning: process through which someone becomes more aware of their interests and needs, motivations etc. Career management: a series of formal and less formal activities, designed and managed by the organization to influence the career development of one or more employ ees Career development: a lifelong series of activities undertaken by individuals in their pursuit of a career Model  of  career  development   Career   Job   Planning   Satisfaction   Career   Development   Career   Career   Managment   Commitment   Individual  career  development   • Demonstrate exceptional job performance • Increase visibility & exposure within the org • Leave the org to seek a better job • Demonstrate organizational commitment • Seek mentors, sponsors and coachers o Mentor: someone who offers informed career guidance and support on a regular basis o Sponsor: a person in an organization who can create career development opportunities for others • Seek growth opportunities To assist development, employees expect org to provide the following: • Career equity: employees want to perceive equity in the organization’s performance/promotion system • Supervisory concern: employees want their sups to play an active role in career development and provide timely performance feedback • Awareness of opportunities: employees want knowledge of the career advancement opportunities that exist in their organization How  do  employees  measure  career  success?   • Advancement: ability to gain sense of power or status , develop a positive reputation & autonomy • Learning: acquisition of new skills and competencies • Employability: being able to make money to survive and have applicable experiences to o btain meaningful work • Psychological factors : focus on internal motivational drivers such as recognition, self esteem, engagement, satisfaction, and self -actualization Factors  affecting  individual  career  choices   • Career plateauing: reaching a temporary flat point on the advancement continuum during one’s career • Generation differences • Individual values, attitudes, and abilities • Personality job fit Communications  Tools  to  Raise  Awareness     • Workshops • Job Postings • Career Paths • Career Counselling • Succession planning: the process of making long-range management development plans to fill HR needs • HRP, Training & Development, PM (Performance management) programs • HR planning: • Performance management Chapter  8  Performance  Management   Differences  between  performance  management  and  performance  appraisal   Performance management : the use of performance data to effect organizational culture, systems, and processes, set goals, allocate resources, effect policies and programs, and share results Performance appraisal: the process by which organizations evaluate employee job performance • PM uses performance data to mutually inform corporate culture, organizational benchmarks, human capital potential, systems and processes, resources, current policies, program directions, and sharing the results with all stakeholders and asking stakeholders for input. • It is a system, provides incentives for employees to concentrate on improving things that contribute most to value creation • PM requires several characteristics: o Performance objective s o Performance goals o Performance measurement o Output measures o Outcome measures Balanced scorecard: an integrated organizational performance measuring approach, looking at organizational learning and innovation, financial management, internal operations and customer management What  are  the  uses  of  performance  appraisals?   • Administrative decisions (Ex. Pay raises, promotions) • Feedback and performance improvement • Employee development and career planning • Criteria for test validation • Training program objectives • Job re-design • Pay Raises • Promotions and Transfers • Identification of Staffing deficiencies • To avoid discrimination lawsuits Key  elements  of  performance  appraisal  systems   Performance standards : the benchmarks against which performance is measured Performance measures: the ratings used to evaluate employee performance In addition: • The HR department usually develops performance appraisal policies, forms and procedures for employees in all departments (Example of Functional Authority) • Centralization is meant to ensure uniformity in order to provide for useful results • Employee’s immediate supervisor usually performs the actual evaluation • Uniformity • Job-related • Practical Why  are  direct  and  objective  measures  of  performance  usually  considered  superior  to   indirect  and  subjective  measures?   • Objective performance measures are those indications of job performance that are verifiable by others o Ex. 2 sups monitor an operator’s calls, they can count the total # of misdialed # o Usually quantitative o Difficult to measure whit e-collar jobs • Subjective performance measures are those ratings that are based upon opinion or perception o Low in accuracy, indirect leads to lower accuracy o Ex. Essay test of phone manners Characteristics  of  an  effective  performance  appraisal  system   • Validity • Frequency of feedback • Reliability • Rater training • Employee input into system • Ratee training development • Employee input into interview process • Acceptable performance standards • Appraisal consequences • Acceptable goals • Different sources (raters) • Control of standards Methods  of  evaluating  past  performance   Noncomparative evaluation methods : appraisal methods that evaluate an employee’s performance according to pre-set data and not by comparing one person’s performance with that of coworkers • Rating scale: a scale that requires the rater to provide a subjective evaluation of an individual’s performance o Form completed by checking most appropriate response for each performance factor o Rater biases exist • Behaviourally anchored rating scales (BARS) : evaluation tools that rate employees along a rating scale by means of specific behaviour examples on the scale • Performance tests and observations Describe  the  characteristics  of  a  360  degree  PA   360-degree performance appraisal: combination of self, peer, supervisor, and subordinate performance evaluation • Multi-source feedback • Each contributor will have focus on different aspects of the job • In line with trend of a flatter organization, wider span of control • Requires suitable corporate culture • Better suited for PA that are development vs. administrative Comparative  evaluation  methods   Comparative evaluation methods : a collection of different methods that compare one person’s performance with that of coworkers Ranking method: a method of evaluating employees that ranks them from best to worst on some trait Forced distributions: a method of evaluating employees that requires raters to categorize employees Methods  to  target  future  performance   Management-by-objectives (MBO) approach: requires an employee and superior to jointly establish performance goals for the future. Employees are subsequently evaluated on how well they have obtained these objectives • Employee and supervisor jointly establish goals • Employee is later evaluated on the objectives Assessment centres: a standardized form of employee appraisal that relies on several types of evaluation and multiple assessors • Usually used to evaluate future potential • Multiple types of evaluation and raters • Usually used for high -potential managers Self-Appraisals*** • Useful to further self -development • **SHOULD be used with all evaluation approaches, past and future Implications  of  the  appraisal  process   • Training raters • Need to know system and its purpose • Evaluation interviews are perform ance review sessions that give employees feedback • The interview should be a positive, performance -improving dialogue Rater  Biases   Halo effect: use of limited info about a candidate to bias the interviewer’s evaluation Error of central tendency : an error in rating employees that consists of evaluating employees a s neither good nor poor performers even when some employees perform exceptionally well or poorly Leniency bias: a tendency to rate employees higher than their performance justifies Strictness bias: a tendency to rater employees lower than their performance justifies Recency effect: a rater bias that occurs when the rater allows recent employee performance to sway unduly the overall evaluation of the employee’s performance Contrast error: a rater biases occurring when a rater compares employees to each other rather than to a performance standard Evaluation  interviews   Evaluation interviews : performance review sessions that give employee feedback about their past performance or future potential Guidelines for effective performance evaluation interview: 1. Emphasize +ve aspects of employee performance 2. Tell each employee that the evaluation session is to improve performance not discipline 3. Provide immediate +ve and developmental feedback in private location, an d explicitly state that you are providing them with performance feedback 4. Review performance formally at least annually and ore frequently for new employees or those who are performing poorly 5. Make criticism specific 6. Focus criticism on performance not person ality 7. Stay calm and do not argue with person being evaluated 8. Identify specific actions the employee can take to improve performance 9. Emphasize willingness to assist their efforts 10. End by stressing +ve aspects of their performance and review plans to improve HRM  feedback   • Provides insight into effectiveness of HRM function • High poor performers indicates error in HRM function • HR may be failing to respond to challenges of external environment or effective job design • HR may be pursuing wrong objectives • Indicates management resistance, incorrect performance standards or measures or lack of constructive feedback Legal  aspect  of  performance  appraisal   • PA is a legal doc • In a court challenged for an employee who lost a job due to inadequate job performance • HR mgr. has to prove performance criteria used were valid and used consistently • A reasonable time frame must be set for performance improvement Chapter  9  Compensation  Management   Theory  behind  compensation   • Equity theory: o Comparing inputs and outputs of a similar co-worker o Perceived inequity affects employee effort • Expectancy theory: o People will only be motivated if outcome is possible. o People will only be motivated if outcome is contingent. Equity Theory • Internal equity o Comparison of my input / reward ratio with that of similar others. o Employees may seek to address imbalance by changing their inputs. o Perceived equity of a pay system in an organization o Job Evaluation o Procedural justice, distributive justice, interactional justice • External equity o Fairness of organizational compensation levels relative to similar jobs in other organizations. o Perceived fairness in pay relative to what other employers are paying for the same type of work o Salary surveys Inequity: under-rewardàI’d feel underpaid if: o My contributions are t he same as my co-workers’, but I’m paid less o I’m paid the same as my co-workers, but my contributions are greater than my co -workers’ contributions Objectives  of  compensation  management   • Acquire qualified personnel • Control costs • Retain present employ ees • Comply with legal regulations • Ensure equity • Further administrative efficiency • Reward desired behaviours Compensation  Management  Phases/Job  evaluations   4 phases: Job analysis, job evaluation, salary surveys and pricing jobs 1. Job analysis: The systematic study of a job to discover its specifications and skill requirements Identify and study • Job descriptions • Job performance standards 2. Job evaluation: systematic process of assessing job content and ranking jobs according to a consistent set of job characteristics and worker traits • The purpose of job evaluation is to identify which jobs should be paid more than others -relative worth • Provides for internal equity a. Job ranking: a form of job evaluation in which jobs are ranked subjectively according to their overall worth to the organization Method: • Review the job descriptions • Rank the jobs in order of relative worth or importance to the organization o Frequently done by a committee of managers • Use the rank ordering to set pay for each job o Pay the highest ranked job the most, etc. Weaknesses: • The rank ordering tells us that one job is worth more than another, but not how much more • While the ranking takes care of internal equity, it’s not obvious how to take into consideration external equity b. Job grading: a form of job evaluation that assigns jobs to predetermined job classifications according to their relative worth to the organization Strengths: • The sequence of job grades allows us to deal with internal equity • The use of market pay data allows us to deal with external equity Weaknesses: • The classification of jobs into pay grades is subjective o Example: Carpenter = GS9, not GS8 or GS10 (are we sure?) o The method relies heavily on job titles in setting pay o Example: We have to assume that all Carpenter jobs are identical c. Point system: a form of job evaluation that assess the relative importance of the job’s key factors in order to arrive at the relativ e worth of jobs Why  is  the  point  system  superior  to  all  other  systems?  Discuss  advantages  and   disadvantages   • Evaluates critical aka compensable factors of each job, determines different levels or degrees for each factor • More precise than other methods because it can handle critical factors in more detail Six steps are required: 1. Determine compensable factors 2. Determine levels (or degrees) of factors (Responsibility, Skill, Effort, Working conditions) 3. Allocate points to sub factors 4. Allocate points to level s (degrees) 5. Develop the point manual 6. Apply the point system Compensable factors commonly used in Canada Factors: Sub-Factors Skill Education, Experience, Interpersonal Skill Effort Physical effort, mental effort Responsibility Supervision of others, planning Working Conditions Physical environment, travel 3.  Wage  and  salary  surveys   Internal equity: perceived equity of a pay system in an organization External equity: perceived fairness in pay relative to what o ther employers are paying for the same type of work Wage and salary surveys : studies made of wages and salaries paid by other organizations within the employer’s labour market Sources  of  compensation  data   • HRSDC (HR and Skills Development Canada) • Canadian HR centres • Employee associations • Professional associations • Private consultants • NOC (National Occupational Classification) 4.  Pricing  jobs   Key job: a job that is similar and common in the organization and its labour market —ex. Accountant, tool- and-die maker Rate range: a pay range for each job class Merit raise: a pay increase given to individual workers according to an evaluation of their performance Challenges  affecting  compensation     • Prevailing wage rates o Red-circle rate: a rate of pay higher than the contractual, or formerly established rate for the job • Union power • Productivity • Wage and salary policies • Flat Rates- Exceptional performance cannot be rewarded. To give a worker a merit increase requires moving the employee into a higher job class. This upsets the entire balance of internal equity developed o Therefore most firms use rate ranges which are pay ranges (Min-Midpoint-Max) for each job class. • Compa-ratio an index that indicates how an individual’s or group’s salary relates to the midpoint of their relevant pay grades o Salary of employee/midpoint of pay grade or avg. salaries paid/midpoint of pay grade • Canadian labour code : federal law regulating labour relations under federal jurisdiction Explain  the  difference  between  “equal  pay  for  equal  work”  and  “equal  pay  for  equal   value”  and  the  implications  of  the  difference  for  an  HR  mgr.   Pay equity: a policy to eliminate the gap between income of men and women, ensuring that salary ranges correspond to value of work performed Equal pay for equal work : a principle or policy of equal rates of pay for all employees in the establishment performing the same kind and amount of work regardless of sex, race, or other characteristics of individual workers not related to ability or performance Equal pay for work of equal va lue: a principle of equal pay for men and women in jobs with comparable content based on criteria of skill, effort, responsibility and working conditions part of the CHRA • HR mgr. has to make sure the pay system is in line with government legislations o Review org. HR policies, procedures, and practices o Review recruitment and promotional decisions o HRP techniques o Underlying philosophy o Examine differences between men and women Under  what  circumstances  are  pay  differentials  justified? 1. Different performance ratings 5. Demotion pay procedures 2. Seniority 6. Procedure of phased-in wage 3. Red-circling reductions 4. Rehabilitation assignment 7. Temporary training positions The  pay-­‐for-­‐performance  model   Incentive pay: compensation that is directly tied to an employee’s performance and/or productivity • Financial incentives allows regular reinforcement of desired performance • Workers can see results quickly • Directly relates to performance not time worked • May result in inequalities, some workers make more then mgr.’s who are on salary Individual  incentive  plans   Piecework: a type of incentive system that compensates workers for each unit of output Production bonuses: a type of incentive system that provides employees with additional compensation when they surpass stated production goals • Commissions • Executive incentives (stock options, bonuses) Team  (or  group)  based  incentive  plans   Profit sharing plan: a system whereby an employer pays compensation or benefits to employ ees usually on an annual basis, in addition to their regular wage, on the basis of the profits of the company • Team results • Production incentive plans • Employee stock ownership plan (ESOPs) • Cost reduction plans • Non monetary rewards o Scanion plan: an incentive plan developed by Joseph Scanion that has as its general objective the reduction of labour costs through increased efficiency and the sharing of resultant savings among workers o Pay secrecy: a management policy not to discuss or publish individual salaries Advantages Disadvantages • Most prefer it to be kept secret • May generate distrust • Gives mgrs. more freedom • Employees may perceive that there is no • Covers up inequalities relationship between pay and performance Summary  of  individual  and  team  based  incentives   Individual Incentives Team-Based Incentive • Merit Pay- Any salary increase based • Team results i.e. bonus on individual performance • Incentives based on production goals • Piecework- $ for each unit of output. • Profit-sharing -pays additional • Production bonuses - Additional compensation or benefits, usually on an $ when production goals surpassed annual basis, on the basis of the profits • Executive Incentives-Bonus , stock of the company. options – right to purchase the • Employee Stock Ownership (ESOP) company's stock at a predetermined • Cost reduction plans i.e. Scanlon price. Plan, reduces labour costs through • Commissions-% of selling price increased efficiency and the sharing of resultant savings among workers. New  approaches  to  pay   Skill or knowledge based pay : a pay system based on the skills or knowledge that an employee has (in contrast to the more common job based pay) Autonomous work groups : any of a variety of arrangements that allow employees to decide democratically how they will meet their group’s work objectives In  what  ways  doe  the  total  reward  model  differ  from  the  regular  compensation   approach?     Total reward model: inclusion of everything employees value in an employment relationship • Tailored to the organization • Companies enjoy easier recruitment of high quality staff, reduced costs because of lower turnover, higher employee performance and enhanced reputation as an employer of choice Broadbanding: consolidation of a large number of pay grades into a few “broad bands” • Assists in flattening large, hierarchical org • Encourages employees to broaden their skills and abilities • Allows for a more flexible workforce and organization • Deemphasizes promotion • Eases internal transfers • Supports new org climate • Simplifies paperwork Pay  and  organizational  strategy   1. Motivating performance 2. Identifying valued rewards 3. Relating rewards to performance 4. Setting performance goals 5. Motivation and punishment 6. Motivating skills and knowledge development 7. Fostering attraction and retention Chapter  10  Employee  Benefits  and  Services   Direct Compensation: pay, based on critical job factors or performance Indirect Compensation: benefits and services as a condition of employment, not directly related to performance, approaching 50% of annual payroll expenses Role  of  indirect  compensation   Societal • Gives employ
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