Chapter 3

Human Resource
Development and
Management
Angelyn B. Machate, RPm
Instructor 1
OBJECTIVES

❑ Discuss training and development and its benefits

❑ Differentiate the various training methods and
model
❑ Identify which training method/s is/are suited to a
certain job
❑ Explain the importance of performance evaluation
❑ Discuss the Performance Evaluation Process
❑ Differentiate the various training methods
❑ Reflect on the ways on how to motivate
employees
❑ Reflect on the importance of rewards
Human Resource Development
and Management

1
“ Give a man a fish and you feed him for a
day. Teach a man how to fish, and you
feed him for a lifetime ”
- Chinese Proverb
HUMAN RESOURCE DEVELOPMENT AND
MANAGEMENT

o Training and Development

o Performance Management
o Performance Evaluation
o Principles of Effective Performance
Management
o Motivation Theories and Principles
o Compensation and Rewards
Management
TRAINING AND DEVELOPMENT
DEFINED…

Organized learning activities that aim

to equip people with the competencies
needed to perform a current or future
job effectively.
BENEFITS OF TRAINING AND
DEVELOPMENT

- Higher employee engagement and

productivity
- Better conformance to
performance and quality standards
- Greater customer satisfaction
- Increase sales and profit
- Enhancement
ADDIE : TRAINING AND DEVELOPMENT MODEL

A NALYSIS

D ESIGN

D EVELOPMENT

I MPLEMENTATION

E VALUATION
A - NALYSIS
o The process of IDENTIFYING TRAINING NEEDS and REQUIREMENTS.
o The process of collecting data to determine the needs and requirements of the organization, the
job and the target participants.

ORGANIZATION JOB PARTICIPANTS

• Nature of Business & • Desired Performance • Education & Previous

Operations or Results Training
• Mission, Vision, Core • Best Practice • Work Experience
Values & Culture • Do’s & Don’ts • Level of Proficiency
• Long term & Short- • Strengths & Areas for
term plans Improvement
• Organizational Issues
& Concerns
D - ESIGN
o The process of DEFINING TRAINING OBJECTIVES, course content and training
methods.
o Describes the desired output or result to be achieved during and after the
training.
1. TERMINAL OBJECTIVE – specify how the organization will benefit from
the training.
2. BEHAVIORAL OBJECTIVE – specify the desired on-the-job actions to be
demonstrated by the participants during & after the training.
D - ESIGN
TERMINAL OBJECTIVE – specify how the organization will benefit from
the training.
Example:
• To generate gross sales of 80 million by the end of December 2017
• To reduce operating expenses by 30% w/in three(3) months
• To achieve an average of 4.5 customer satisfaction rating for the
3rd quarter of 2017
D - ESIGN
BEHAVIORAL OBJECTIVE – specify the desired on-the-job actions to be
demonstrated by the participants during & after the training.
Example:
• To design a valid & reliable organizational climate survey
instrument customized to the needs of ABC Corporation
• To organize and conduct a high impact sales presentation & gain an
average rating of at least 3.0 (5.0 being the highest) from expert
raters.
D - EVELOPMENT
- The process of developing learning activities and preparing
course materials and instructor’s guide.

Organize Training Content

- Organize the contents or topics of the training in a logical,
orderly and sequential manner.
D - EVELOPMENT
Select Training Methods
- Choosing the best training method/s for each topic in order to
achieve training objectives.
• Principle of Adult Learning (Malcolm Knowles)
• Principle of Experiential Learning (David Kolb)
• Principle of Human Information Processing
D - EVELOPMENT
Principle of Adult Learning (Malcolm Knowles)
• Adult Learning is activated by the learners themselves
• Adult Learning must focus on the learner’s need & emphasize the
discovery of personal meaning & relevance
• Adult prefers self-directed learning
• Adult values practical and experiential learning
• Adult’s experiences are a rich source of learning
D - EVELOPMENT
Principle of Experiential Learning (David Kolb)
• EXPERIENCING (Concrete Experience)
The process of providing the participants w/ a concrete & structured
learning experience.
• PROCESSING (Reflective Observation)
The process of facilitating the participants to identify the lessons that
they discover from the learning experience provided during the
training.
D - EVELOPMENT
Principle of Experiential Learning (David Kolb)
• GENERALIZING (Abstract Conceptualization)
The process of discussing key concepts, principles, processes and
techniques directly related to the structured learning experience.
• APPLYING (Active Experimentation)
The process of facilitating the participants to develop a plan to apply
the lessons & principles learned to improve their on-the-job behavior
or performance.
D - EVELOPMENT
Principle of Human Information Processing
• Create sensory impact
• Avoid information overload
• Deliver information systematically
• Use repetition & association
• Use memory support system
I - MPLEMENTATION
• Structured Warm-up Activities
Short activities such as ice breakers & energizers to get the
participants involved, increase energy & interest, or introduce a key
idea or topic.
• Training Presentation
Presentation of organized information to facilitate the participants in
developing competencies required to perform their job effectively. It
can be a combination of lecture, demonstration, and audio-visual
I - MPLEMENTATION
• Group Discussion
Guided exchange of information, ideas & realizations on a particular
subject among the participants and the facilitator.
• Case Study
Description of a problem situation with sufficient details for the
participants to analyze & suggest appropriate solution or action.
I - MPLEMENTATION
• Simulation
Providing participants w/ opportunity to practice & perform a task
through structured hands-on exercises that are patterned after real
on-the-job situation.
• Role Play
Enactment of real life scenario to enable the participants to practice
job related interaction skills.
I - MPLEMENTATION
• Active Learning Group Games
Indoor & outdoor group games that challenge the participants
physically, mentally & emotionally in order to realize specific business
& work related lessons.
• On-the-Job Coaching
A series of structured on-the-job learning activities that aims to equip
the trainees w/ competencies needed to perform their job effectively.
I - MPLEMENTATION
Usage of Active Learning Group Games
• Planning
• Problem Solving
• Decision Making
• Teamwork
• Communication
• Time Management
• Resource Management
I - MPLEMENTATION
• E-Learning
The use of computers & networks to deliver training content to
the participants & to facilitate their learning activities.
- Computer Based Training
- Synchronous Learning
- Asynchronous Learning
I - MPLEMENTATION
• Computer Based Training
The completion of coursework through self-paced programmed
instruction (courseware stored in electronic form) w/o instructor-
participant interaction.
• Synchronous E-learning
Uses real time interactive tools such as virtual classroom, video
conferencing, chat & application sharing.
I - MPLEMENTATION
• Asynchronous E-learning
Uses collaborative tools that participants can use at their convenience
such as e-mail & online discussion board.
E - VALUATION
• The process of determining the effectiveness of the training activities.
• The process of determining if the training program is able to achieve
its intended objectives.
Four Levels of Training Evaluation (Donald Kirkpatrick)
1. Reaction Evaluation
2. Knowledge Evaluation
3. Behavior Evaluation
4. Impact Evaluation
E - VALUATION

1. Reaction Evaluation Components of Reaction

assess participant’s Evaluation

perception about the • Program Objective

program using a • Program Content

standard survey • Training Methods

questionnaire. • Trainer
• Equipment Materials
E - VALUATION

2. Knowledge Evaluation Knowledge Evaluation Guidelines

• Conduct pre and post training
assess participant’s
knowledge assessment
learning from the
• Use a control group if
program through
available
workshop outputs,
• Use objective test format
written or practical
• Apply techniques on effective
examination.
test construction
E - VALUATION

3. Behavior Evaluation Behavior Evaluation

• Identify specific & observable
assess participant’s
behavior indicators
behavioral changes • Create a clear & valid behavior
rating form
before, during and after
• Gather data from multiple
the program. raters
• Measure behavior changes over
E - VALUATION Training Impact Indicators
• Sales
4. Impact Evaluation
• Profit
assess the benefits • Customer Satisfaction
brought about by the • Corporate Image

training program to the • Quality Improvement

• Productivity Improvement
company by measuring
• Cost Reduction
results against terminal
• Cycle Time Reduction
objectives. • Return of Investment
Performance Management

2
MAJOR PRINCIPLES IN PERFORMANCE
AND TABLES TO COMPARE DATA
MANAGEMENT AND EVALUATION

A B C

INTENDED LEARNING OUTCOMES

o Know the Yellow 10
Performance 20 7
Management
process. Blue 30 15 10

o Learn how to design evaluation

Orange 5 24 16
instruments.
o Understand how to legally terminate an
unproductive employee.
PERFORMANCE MANAGEMENT

- The process of facilitating

employees in achieving effective
performance and reaching their
job targets.
THE PERFORMANCE MANAGEMENT PROCESS
LET’S REVIEW SOME CONCEPTS

✓ Establishing
Yellow
performance standards
Blue

✓ Communicating
Is the color of gold, butter
expectations
and ripe lemons. In the
Is the colour of the clear
sky and the deep sea. It is
spectrum of visible light, located between violet and
✓ Measuring actual performance
yellow is found between green on the optical
green and orange. spectrum.

✓ Compare actual performance w/ standards

Yellow Blue
✓ Discuss Isthe performance
the color of gold, butter Isevaluation result
the colour of the clear
and ripe lemons. In the sky and the deep sea. It is
with employee
spectrum of visible light, located between violet and
yellow is found between green on the optical
green and orange. spectrum.
✓ Initiate corrective action if necessary –
coaching or counseling
PERFORMANCE EVALUATION

- The process of determining an

employee’s level of
performance and providing
feedback for further
improvement.
Performance appraisal process can be
divided into nine interrelated steps.
1. Determine purpose of appraisal
2. Identify environmental and cultural limitations
3. Determine who will evaluate performance
4. Select the best appraisal methods to accomplish
goals
5. Train raters
6. Observe and document performance
7. Evaluate performance
8. Communicate appraisal results to employees
9. Make personnel decisions
Step 1: Determine the Reason for Evaluating Employee
Performance
1. Providing Employee Training and Feedback
o improve employee performance by providing feedback about what
employees are doing right and wrong.
2. Determining Salary Increases
o one important reason for evaluating employee performance is to provide a
fair basis on which to determine an employee’s salary increase.
3. Making Promotion Decisions
o determine which employees will be promoted.
o training-needs analysis
Step 1: Determine the Reason for Evaluating Employee
Performance
4. Making Termination Decisions
o When performance management techniques are not successful, the
results of a performance review might suggest that the best course of
action is to terminate the employee.
5. Conducting Personnel Research
o A final reason for evaluating employees is for personnel research.
Employment tests must be validated, and one way this can be done is by
correlating test scores with some measure of job performance.
Step 2: Identify Environmental and Cultural Limitations

o If supervisors are highly overworked, an elaborate, time-consuming

performance appraisal system will not be successful.
o In an environment in which there is no money available for merit pay,
developing a numerically complex system will become frustrating,
and the results of the evaluation may not be taken seriously.
o In an environment in which employees are very cohesive, the use of
peer ratings might reduce the cohesiveness.
Step 3: Determine Who Will Evaluate Performance

360-degree feedback and multiple-source feedback

1. Supervisors
2. Peers
3. Subordinates (also called upper feedback)
4. Customers
5. Self-appraisal
Step 4: Select the Best Appraisal Methods to Accomplish
Your Goals
o Criteria are ways of describing employee success.
o Prior to developing the actual performance appraisal
instrument, two important decisions must be made:
1) the focus of the performance appraisal dimensions
2) and whether to use rankings or ratings.
Step 4: Select the Best Appraisal Methods to Accomplish
Your Goals
Decision 1: Focus on the Appraisal Dimension

Trait-Focused Performance Dimensions Competency-Focused Performance

o concentrates on such employee attributes as Dimensions
dependability, honesty, and courtesy. Though o competency-focused dimensions
commonly used, trait-focused performance concentrate on the employee’s
appraisal instruments are not a good idea knowledge, skills, and abilities.
because they provide poor feedback and thus o provide feedback and suggest the
will not result in employee development and steps necessary to correct deficiencies.
growth.
Step 4: Select the Best Appraisal Methods to Accomplish
Your Goals
Decision 1: Focus on the Appraisal Dimension
Task-Focused Performance Dimensions
o organized by the similarity of tasks that are performed
o Note that a task-focused dimension usually includes several competencies.
o The advantage of this approach is that because supervisors are concentrating
on tasks that occur together and can thus visualize an employee’s
performance
o The disadvantage is that it is more difficult to offer suggestions for how to
correct the deficiency if an employee scores low on a dimension.
Step 4: Select the Best Appraisal Methods to Accomplish
Your Goals
Decision 1: Focus on the Appraisal Dimension
Goal-Focused Performance Dimensions Contextual Performance
o basis of goals to be accomplished o the effort an employee makes to
by the employee get along with peers, improve
o the advantage of a goal-focused the organization, and perform
approach is that it makes it easier tasks that are needed but are
for an employee to understand why not necessarily an official part of
certain behaviors are expected. the employee’s job description
Step 4: Select the Best Appraisal Methods to Accomplish
Your Goals
Decision 2: Should Dimensions Be Weighted?
o whether the dimensions should be weighted so that some are more
important than others.
o Weighting dimensions makes good philosophical sense, as some
dimensions might be more important to an organization than others

Decision 3 : Use of Employee Comparisons, Objective Measures, or

Ratings
o Employee Comparisons: To reduce leniency, employees can be
compared with one another instead of being rated individually on a
scale.
Step 4: Select the Best Appraisal Methods to Accomplish
Your Goals
Decision 3 : Use of Employee Comparisons, Objective Measures, or
Ratings
Employee Comparisons
o Rank order - ranked in order by their judged performance for each
relevant dimension
o Paired comparisons - comparing each possible pair of employees and
choosing which one of each pair is the better employee.
o Forced distribution - with this method, a predetermined percentage of
employees are placed
Step 4: Select the Best Appraisal Methods to Accomplish
Your Goals
Decision 3 : Use of Employee Comparisons, Objective Measures, or
Ratings
Objective Measures
o Quantity of Work - obtained by simply counting the number of relevant
job behaviors that take place
o Quality of Work - Quality is usually measured in terms of errors, which are
defined as deviations from a standard
o Attendance - can be separated into three distinct criteria: absenteeism,
tardiness, and tenure.
o Safety - employees who follow safety rules and who have no occupational
accidents do not cost an organization as much money as those who break
rules, equipment & possibly their own bodies.
Step 4: Select the Best Appraisal Methods to Accomplish
Your Goals
Decision 3 : Use of Employee Comparisons, Objective Measures, or
Ratings
Ratings of Performance
o Graphic Rating Scale - to dimensions accompanied by words such as “excellent”
and “poor” anchoring the ends of the scale.
o Behavioral Checklists - behavioral checklists consist of a list of behaviors,
expectations, or results for each dimension
o Comparison with Other Employees. - Supervisors can rate performance on a
dimension by comparing the employee’s level of performance with that of other
employees.
Step 4: Select the Best Appraisal Methods to Accomplish
Your Goals
Decision 3 : Use of Employee Comparisons, Objective Measures, or
Ratings

Ratings of Performance
o Frequency of Desired Behaviors. - Behaviors can be rated based on the
frequency with which they occur.
o Extent to Which Organizational Expectations Are Met - rate employees
on the extent to which their behavior meets the expectations of the
organization
Step 4: Select the Best Appraisal Methods to Accomplish
Your Goals
Decision 3 : Use of Employee Comparisons, Objective Measures, or
Ratings

Evaluation of Performance Appraisal Methods

o feedback from behavior-based methods is easier to give and to use to
provide suggestions for improvement.
o the way in which the performance appraisal system is administered can
affect employee trust and satisfaction.
Step 4: Select the Best Appraisal Methods to Accomplish
Your Goals
Decisions based on performance appraisal ratings are most likely to survive a legal challenge if
they are:
o based on a job analysis,
o raters received training and written instructions,
o raters had the opportunity to actually observe the performance of the employee,
o performance standards had been communicated to the employee,
o employees were allowed to review and comment on the appraisal results,
o employees were warned of performance problems and given a chance to improve their
performance,
o ratings from multiple raters are consistent.
Step 5: Train Raters

Frame-of-reference Training
o Frame-of-reference training provides raters with job-related
information, practice in rating, and examples of ratings made by
experts as well as the rationale behind those expert ratings
o The goal of frame-of reference training is to communicate the
organization’s definition of effective performance and to then get
raters to consider only relevant employee behaviors when making
performance evaluations
Step 6: Observe and Document Performance
Critical Incidents - examples of excellent and poor employee performance.
Supervisors tend to remember the following:
1) First impressions.
2) Recent behaviors.
3) Unusual or extreme behaviors
4) Behavior consistent with the supervisor’s opinion

Employee Performance Record - Half of the sheet is used to record examples of

good behaviors, and the other half to record examples of poor behaviors.
Step 7: Evaluate Performance
- Obtaining and Reviewing Objective Data
- Reading Critical-Incident Logs
- Completing the Rating Form
o Distribution Errors - when a rater uses only one part of a rating scale.
o leniency error
o central tendency error
o strictness error
o Halo Error
o A halo error occurs when a rater allows either a single attribute or an overall
impression of an individual to affect the ratings that she makes on each relevant job
dimension
Step 7: Evaluate Performance
o Proximity Errors
o The difference between this error and halo error is in the cause of
the error and the number of dimensions affected. With halo error,
all dimensions are affected by an overall impression of the
employee. With proximity error, only the dimensions physically
located nearest a particular dimension on the rating scale are
affected; the reason for the effect, in fact, is the close physical
proximity of the dimension rather than an overall impression.
Step 7: Evaluate Performance
o Contrast Errors
o The performance rating one person receives can be influenced by
the performance of a previously evaluated person
o assimilation
o Low Reliability across Raters
o Two people rating the same employee seldom agree with each other
o Sampling Problems
o Recency Effect
o Infrequent Observation
Step 7: Evaluate Performance
o Cognitive Processing of Observed Behavior
Observation of Behavior - research indicates that raters recall those
behaviors that are consistent with their general impression of an employee
Emotional State - amount of stress under which a supervisor operates also
affects her performance ratings
o Bias - Raters who like the employees being rated may be more lenient
o The rater may overcompensate in an effort to be “fair.” The rater’s
feelings, or affect, toward an employee may interfere with the
cognitive processing of actual performance information.
Step 7: Terminate Employees
1. Employment-at-Will Doctrine - In the private
sector, the employment-at-will doctrine in most
states allows employers freedom to fire an
employee without a reason—at will. In the public
sector, an employee can be fired only for cause.
At will employment means that an employee can leave a
job whenever they want for any reason, and
employers can terminate an employee for any reason
without notice or cause.
Step 7: Terminate Employees

2. Legal Reasons for Terminating 3. The Termination Meeting

Employees o Prior to the Meeting
o Probationary Period o During the Meeting
o Violation of Company Rules o After the Meeting
o Inability to Perform
o Reduction in Force (Layoff )
Motivation and Compensation

3
MOTIVATION
ANDAND
TABLESCOMPENSATION
TO COMPARE DATA

A B C

INTENDED LEARNING OUTCOMES

Yellow 10 20 7
o Know the types of people who tend
to be more Blue
motivated
30 than
15 others
10

o Be able toOrange
use operant
5 24
conditioning
16

principles to motivate employees

MOTIVATION

- The willingness to exert high

levels of effort to make a
contribution in achieving
organizational goals.
THEORIES AND PRINCIPLES OF
MOTIVATION
1. Maslow’s Hierarchy of Needs
2. Two Factor Theory
3. Reinforcement Theory
4. Equity Theory
5. Expectancy Theory
Maslow’s Hierarchy of Needs

Higher Order
Needs

Lower Order
Needs

ABRAHAM MASLOW
TWO-FACTOR THEORY
FOCUS INTRINSIC
HERE!

Factors that may lead

FREDERICK HERZBERG to
DISSATISFACTION
REINFORCEMENT THEORY

POSITIVE NEGATIVE
REINFORCEMENT REINFORCEMENT

POSITIVE NEGATIVE
PUNISHMENT PUNISHMENT

BURRHUS SKINNER Behaviours that are reinforced tend to be REPEATED, while those
that are ignored or punished tend to be EXTINGUISHED.
EQUITY THEORY
Employees expect a FAIR RETURN for what they
contribute to their jobs.

INPUTS OUTCOMES
o Effort o Pay
o Experience o Raises
o Education o Recognition
o Competence

There is EQUITY if the employees’ input ratio is equal to or

STACY ADAMS greater than the outcome ratio. People will be motivated to
perform effectively and even increase their productivity.
EXPECTANCY THEORY
EXPECTANCY – the degree to which an
employee believes that one’s effort will lead
to performing the job effectively.

INSTRUMENTALITY – the degree to which an

employee believes that one’s effective performance
will lead to certain rewards or outcomes.

VALENCE – the degree to which an

employee values the rewards or outcomes.

VICTOR BROOM
A person will be motivated if expectancy is high,
instrumentality is high and valence is high.
Self-Fulfilling Prophecy Galatea Effect

Pygmalion Effect Golem Effect

A Self-fulfilling Prophecy

- is a belief that comes true because we

are acting as if it is already true.
- New agers call this “The Law of
Attraction”, but there’s really nothing
mystical about it.
- Our expectation that we will see a
particular outcome changes our
behavior, which shapes the way others
COMPENSATION AND REWARDS
MANAGEMENT

- A human resource
management activity that deals
with every type of rewards
that employees receive in
return for performing
GOALS OF COMPENSATION AND
REWARDS MANAGEMENT
o To create a system of rewards that is equitable both
to the employee and employer.
o To motivate and retain high performing employees.
o To attract high potential and qualified job applicants.
IMPORTANCE OF COMPENSATION AND
REWARDS
o One of the main reasons why people seek
employment
o Provide necessities in life
o Contributing factor to people’s effort
o Indicate an employee’s worth to the organization
DETERMINANTS OF COMPENSATION AND
REWARDS
o Government’s regulation
o Industry’s economic condition
o Supply and demand in the labor market
o Company’s manpower budget
o Collective bargaining
o External competitiveness
o Internal competitiveness
INTERNAL COMPETITIVENESS EXTERNAL COMPETITIVENESS

o JOB EVALUATION – process of o COMPENSATION SURVEY –

determining the worth or value provides data about the
of one job in comparison to compensation paid to employees
other jobs in the company. by all employers in an area, an
o Jobs should be compensated in industry, or an occupational
accordance with levels of group.
difficulty and complexity.
TYPES OF COMPENSATION AND REWARDS

o Direct Financial Compensation

o Indirect Financial Compensation (Benefits)

o Non-financial Rewards
Direct Financial Compensation
o Composed of fixed and variable compensation.
o Fixed Direct Financial Compensation – salaries or wages
o Variable Direct Financial Compensation – commissions, incentives and
bonuses.
3 Types of Incentive and Bonus Plans
1. Individual Incentive (Performance-Based Incentive)
2. Team-Based Incentive (Gainsharing)
3. Organization-wide Incentive (Bonus, Profit-Sharing)
Indirect Financial Compensation
o Benefits provided by the company to the employees.
o Can be Legally-mandated benefits or Company-initiated benefits
Examples of Company-initiated benefits : health and life insurance,
company loans, transportation allowance, meal allowance, retirement
plans and savings plan.
o Flexible Benefits Plan – giving the employees FREEDOM TO CHOOSE
from a range of company-initiated benefits tailor-fitted to their needs.
Non-Financial Rewards

o Employee Recognition Program

o Training And Education Program
o Free Housing And Meals
o Company Shuttle Services
o Health And Wellness Programs
o Work Life Balance Programs
CRITERIA OF EFFECTIVE COMPENSATION AND
REWARDS DESIGN
o Adequate to meet employees’ basic needs
o Equitable both internally and externally
o Balance of different types of compensation and rewards
o Recognize and motivate employees and attract high potential
applicants
o Clear link between reward and performance