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MHR 523 Study Guide - Final Guide: Defined Benefit Pension Plan, Canada Labour Code, Performance Appraisal

Human Resources
Course Code
MHR 523
Margaret Yap
Study Guide

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MHR523 Exam Review Ch1016
Chapter 10 Performance Management
Performance management t encompassing all activities related to improving employee performance, productivity & effectiveness; goal
setting, pay for performance, training & development, career management & disciplinary action; performance appraisal process t
continuous improvement
1. Define performance expectations & goals t measurable, clear, link to current strategic objectives & implement plans
2. Providing ongoing feedback & coaching t 2 way communication, ongoing
3. Conducting performance appraisal & evaluation discussions t formats, meeting standards
4. Determining performance rewards/consequences t incentives
5. Conducting development & career opportunities discussions t strengthen, improvements
Formal Appraisal Methods
Graphic rating scale t lists number of traits & range of performance for each; employee rated by identifying score that best describes their
level of performance for each trait, unclear standards
Alternation ranking method t rank employees from best to worst on particular trait; distinguish
Paired compassion method t rank employees by making chart of all possible pairs of employees for each trait & indicate the better
employee of the pair; comparison
Forced distribution method t predetermined percentages of ratees placed in various performance categories; bell curves; disadvantage:
productivity affected, low morale/confidence, always have a lower %
Critical incident method t l}}(µv}uu}vP}}lµv]oÆuo}(uo}Ç[Á}l-related behaviour & reviewing list
with employee at predetermined times
Narrative Forms t use performance improvement plan, problem described in specific detail
Behaviourally anchored rating scale (BARS) t appraisal method, combine benefits of narratives, critical incidents & quantified ratings by
anchoring a quantified scale with specific narrative examples of good & poor performance; consistency & verify, employee development,
time consuming to develop
1. Generate critical incidents t specify effective & effective performance
2. Develop performance dimensions t cluster incidents into smaller set of performance
3. Reallocate incidents t group incidents into same clusters & retain incidents similarly assigned twice
4. Scale incidents t rate behaviour representation
5. Develop final instrument t behavioural anchors for each incident
Advantages: more accurate measure, clearer standards, feedback, independent dimensions, consistency
Management by objectives (MBO) t setting specific measurable goals with each employee & periodically reviewing progress made;
organization-wide, goal setting & appraisal program
1. Set }Pv]Ì]}v[ goals
2. Set departmental goals
3. Discuss departmental goals
4. Define expected results (set individual goals)
5. Performance reviews: measure the results t compare actual to expected
6. Provide feedback t discuss & evaluate progress
Challenges: setting unclear, non-measurable objectives, time consuming; objectives must be attainable & fair
Electronic performance monitoring (EPM) t having supervisors electronically monitor amount of computerized data employee is processing
per day = performance
Performance Appraisal Problems t emotional, employees overly optimistic about what their ratings will be
1. Validity & reliability (consistent for same performance)
o Criteria t relevant to job being appraised, broad enough to cover all aspects of job requirements, specific

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Rating Scale problems
1. Unclear performance standards t appraisal scale, too open to interpretation of traits & standards
2. Halo effect t when supervisor rating employee on one trait biases rating of that person on other traits
3. Central tendency t to rate all employees in middle of scale
4. Strictness/leniency t occurs when supervisor has tendency to rate all employees either low/high
5. Appraisal bias t allow individual differences to affect appraisal ratings that these employees receive
6. Recency effect t ]vP}ÁZv}vuo}Ç[most recent performance rather than on performance throughout
appraisal period
7. Similar-to-me bias t give higher performance ratings to employees who are perceived to be similar to rater in some way
To avoid Appraisal Problems t raters must be familiar with problem (understand), choose appropriate appraisal tool, train supervisors to
eliminate rating errors
Who does Appraising? t Supervisors, peers, committees, self, subordinates, 360-degree (all of above)
360-degree appraisal t use multiple raters (peers, employees) reporting to the appraisee, supervisors & customers (multi-source feedback)
Appraisal interview t supervisor & employee review appraisal & make plans to remedy deficiencies & reinforce strengths
2. Satisfactory (promotable) t make development plans
3. Satisfactory (not promotable) t maintain performance, use incentives
4. Unsatisfactory (correctable) t plan correction
To Conduct Interview t Be direct, do not get personal, encourage person to talk, develop an action plan
Handling Criticism & Defensive Employees
5. Recognize that defensive behaviour is normal
6. EÀl}v[(v
7. Postpone action
8. Recognize human limitations
Ensure interview leads to improved performance from Legal expert:
1. Let them know their performance is unacceptable & explain your minimum expectations
2. Ensure that expectations are reasonable
3. Let employees know that warnings play a significant role in the process of establishing just cause
4. Ensure that you take prompt corrective measures when required
5. Avoid sending mixed messages, e.g. Áv]vPo}PZÁ]Z^](}Ç_(}uvÀ]ÁX
6. Provide the employee with a reasonable amount of time to improve performance
7. Be prepared to provide employees with support to facilitate improvement
Future Performance Management (effective)
9. Linking individual goals & business strategy
10. Showing leadership & accountability at all levels of organization
11. Ensuring close ties among appraisal results, rewards & recognition outcomes
12. Investing in employee development planning
13. Having administratively efficient system with sufficient communication support
Chapter 11 Strategic Pay Plans
Total rewards t integrated package of all rewards (monetary & nonmonetary, extrinsic & intrinsic) gained by employees arising from their
1. Compensation t direct financial payments of wages, salaries, incentives, commissions & bonuses
2. Benefits t indirect financial payments, employer-paid insurance & vacations, employee services
3. Work/life programs t flexible scheduling, telecommuting, childcare

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4. Performance & recognition
5. Development & career opportunities t advancement, change in responsibilities
Impact of Rewards
14. Attract, retain, motivate/engage employees
15. Engagement t clear understanding, positive connection
16. Competitive base pay = #1 factor attracting employees
17. Excellent career opportunities = most important to retain employees
18. ^v]}uvPuv[]v]vuployee well-being influences employee engagement
Basic Considerations in Determining Pay Rates t legal requirements, union issues, compensation policy, equity
Legal Considerations
19. Employment/labour standard acts (Canada Labour Code)
o Minimum standards regarding pay (wage, hours, overtime, vacation, statutory holidays, termination, record keeping)
20. Pay Equity Acts
o Employers required to identify male/female dominated jobs, use gender-neutral job evaluation system based on specific
compensable factors to evaluate jobs
21. Human Rights Act
o Prohibit discrimination in employment (compensation & promotion)
22. Canada/Quebec Pension Plan
o Wv]}vv(]}vuo}Ç[ÀPv]vP]µ]vP]uv
23. Other Legislation affecting compensation
o Employment Insurance Act t protect from total economic destitution in event of employment termination beyond their
control, no fault of their own
o Maternity leave, parental leave & compassionate care leave benefits
Union Influences: Compensation Policies Equity t internal & external
24. Include basis for salary increases, promotion & demotion, overtime pay, probationary pay, leaves for military service, jury duty,
Establishing Pay Rates
1. Job evaluation t used as reference points to arrange other jobs by relative worth
x Job Evaluation Committee t identifying need for program, getting cooperation, choosing evaluation committee;
established to ensure representation of points of view of others familiar with job in question, different perspective
regarding nature of job
2. Conduct wage/salary survey t pay rates for job based on relative worth compared to benchmark, increase # of positions based on
3. Combine job evaluation & salary survey info to determine pay for jobs t wage curve for pay grades
Job evaluation t systematic comparison to determine relative worth of jobs within firm
Benchmark job t ]]oi}}(]u[}]}vl}uu}voÇ(}µv]v}Z}Pv]Ì]}v
Compensable factor t fundamental, compensable element of job (skill, effort, responsibility, working conditions)
Classification/grading method t categorizing jobs into groups; either:
25. Draw up class descriptions & place jobs into classes based on their correspondence
26. Draw up set of classifying rules for each class
x Advantages: avoid having to work with & develop pay rates for unmanageable number of jobs
x Disadvantages: difficult to write class/grade descriptions & considerable judgement required to apply
Classes t groups of jobs based on set of rules for each class; contain similar jobs
Grades t based on set of rules for each grade, where jobs are similar in difficulty but otherwise different
Grade/group description t written description of level of compensable factors required by jobs in each grade; combine similar jobs into
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