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Human Resource Management Business Cases Top 1: Overview & Introduction Top 2: Planning Top 3: Staffing Ass.-Prof. Mag. Dr. Ursula Liebhart
Human Resource Management LEILA Business Scool | Leibach | 14 January 2010
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HRM Overview & Introduction
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Functions and Activities of HR management
Strategic HR Management: HR Marketing and Retention, Employee and Labor Relations, Health, Safety and Security
HR
pla
nnin
g
HR
con
trolli
ng, H
R te
chno
logy
Staffing: Job Analysis, Recruiting & Selection
Performance Management: Leadership & Motivation, Personnel Appraisal
HR Development: Orientation, Socialization, Career Planning, Training & Personnel Development
Total Rewards: Compensation, Incentives, Benefits & working time
Further: Derecruiting /Lay-off, Diversity Management
Role and Organization of HR Management
External environment Source: Thom (2001); Liebhart (2007); Mathis/Jackson (2008)
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Definition & goals of Human Resource Management
Human Resource Management is the adequate supply with employees, considering the needs of the enterprise and the needs of the employees. Goal of HRM is … to supply the enterprise with personal capacities (manpower)
– in the adequated quality and quantity – to the right point of time – for the time required – on the specific job site
… so that the corporate processes can be done.
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The Needs of HRM
• HRM: the process of managing human resources (intellectual asset or human capital) to achieve an organizational objectives.
• The functions of HRM: staffing the organization, designing jobs and teams, developing
skillful employees, identifying approaches for improving their performance, and rewarding employee success-all typically labeled HRM issue.
• Competitive Advantage through people: core competencies (Knowledge, Skills, and
Ability - KSAs) • Human Competitive Advantages: have value, rare and unavailable to competitors,
difficult to imitate, and could be organized for synergy
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Current HR Management Challenges |1
Human Resource
Management
Globalization of Business
Economic and Technological Changes &
Managing Change
Organizational Cost Pressures and Restructuring
Human Capital & Workforce
Demographics and Diversity
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Current HR Management Challenges| 2
• Globalization of Business – Outsourcing and increased competition – The threat of terrorism – trade and tariff barrier – culture, law, and business practices – responsibility of firm to act in best interest (CSR)
• Economic and Technological Changes – Occupational shifts from manufacturing and agriculture to service industries and
telecommunications. – Pressures of global competition causing firms to adapt by lowering costs and increasing
productivity. – Technological Shifts and the Internet – Growth of information technology – knowledge worker – Knowledge-Based Training – Human Resource Information System
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Current HR Management Challenges| 3
• Managing Change – Reactive and Proactive Change – Managing Change through HR (keeping employees focused on the business success – Responding to the Market (TQM, Six Sigma, and Reengineering)
• Organizational Cost Pressures and Restructuring – Mergers and Acquisitions – “Right-sizing”—eliminating of layers of management, closing facilities, merging with other
organizations, and outplacing workers • Intended results are flatter organizations, increases in productivity, quality, service and lower costs. • Costs are “survivor mentality”, loss of employee loyalty, and turnover of valuable employees.
– HR managers must work toward ensuring cultural compatibility in mergers. – Outsourcing – Lay off
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Current HR Management Challenges |4
• Human Capital Value – knowledge, skills, and capabilities of individuals that have economic values to
an organization – valuable based on specific skills, can be developed and expanded
• Workforce Availability and Quality Concerns – Inadequate supply of workers with needed skills for “knowledge jobs” – Education of workers in basic skills
• Workforce Demographics and Diversity - Increasing Racial/Ethnic Diversity - More Women in the Workforce - Single-parent households, dual-career
couples, working mothers and family/childcare - Significantly Aging Workforce - age discrimination
• Growth in Contingent Workforce – Increases in temporary workers, independent contractors, leased employees,
and part-timers caused by: • Need for flexibility in staffing levels • Increased difficulty in firing regular employees. • Reduced legal liability from contract employees
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Internal and external influences on HR-related work
HR-related work
structures/ systems
managers‘ conception of man position of HRM
employees‘ potentials
job market
technological developments
employees‘ expectations of employers
legislations/ contracts
economic change
social change
central ideas/ strategies
values/norms (corporate culture)
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Self-Conception of the Personalarbeit
HR-related work as staff unit
institutionalization phase
Visions-orientied and integrated HR management
Phase of holistic entrepreneurship
Hr-related work as administrative
task
phase of bureaucratization
HR-related work as „repair work of the
line“
phase of improvisations
level of activity
re-active pro-active
impact with time
shor
t-te
rm
long
-ter
m
Quelle: Hilb 2002
T 1
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Model for multiple roles of HR Managers
Source: Ulrich (1998)
Strategic Partner (Strategic Role)
• Partner of strategy implementation • Align the HR Strategy to Business Strategy • Focus on developing HR programs that
enhance organizational performance • Leading Role for Best Practices
Administrative Expert (Administrative Role)
• Efficient and effective Delivery of HR Services • Continous improvement of internal processes –
administrative efficiency • Building up of internal competence centers
Employee Champion (Employee Advocate Role)
• Mouthpiece from employees to management • Facilitate chances to personnel and vocational
development of the employees • Provide ressouces for the employees • Responding to epmployee complaints
Change Agent (Facilitator of continuous change)
• Increasing the organization´s ability to
transform • Provide capacities for changes • Designer of the organizational culture
HR Business Partner
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Changing Roles of HR Management
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Operational to strategic transformation of HR
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Competence Profile of the HR Business Partner
• Speak the language of the business • Masters HR methods • Is able to lead change processes • Familarity with HRMS Technologies • Creates cultures and work places
that facilitate the individual performance ability and organizational engagement
• Demonstrates personal credibility
The importance to a professional qualification and experiential
background increases.
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HR Management as a Career Field
• HR Generalist – A person with responsibility for performing a variety of
HR activities.
• HR Specialist – A person with in-depth knowledge and expertise in a
limited area of HR.
• HR Manager – A person who is a line manager for HR Generalists and
Specialists
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Source: HR Department Benchmarks and Analysis 2004
HR Specialists
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Examples of HR customers
Internal customers
• commercial employees • industrial employees • freelancers • contractors working in-house • operational departments • departments of administration • CEO, Management • apprentices, trainees • employees‘ representatives • !
External customers
• HR consultants • headhunters • advertising agencies • lawyers • applicants • former applicants • future applicants • temporary employment agencies • seminar providers • conference hotels, travel agents • providers of HR software • third party billing • providers of professional journals and
books • associations • organizers of fairs • universities, schools • shareholders, board • health insurance • !
Source: Goerke/Wickel-Kirsch (2002)
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Expectation of the internal customers
management
executives
employees
S E R V I C E
individual provider of services
psychologist
change agent ombudsman
promoter/coach
HR marketing specialist
HR consultant
change agent
promoter
HR manager
strategic partner
CONTROL GUIDANCE SUPPORT
HR consultant
consultant trouble shooter
promoter/coach
internal service provider service-center „personnel“
HR expert
advice
change processes
learning and development support
HR department
participation from the customers‘ perspective
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HR work: forms of organization
other options: • Outsourcing of HR functions, „model of elimination“ • virtual HR department
Quelle: Scholz (2000)
Organization of HR department
Distribution of HR competences
universalistic participative central (1)
dominant, central HR department with universal authority („yesterday“)
(4) (also) specialist executives as HR managers, central HR department as comprehensive coordination („day after tomorrow“)
decentral (2) Dominance of the HR field, but throughout the company („today“)
(3) (also) specialist executives as HR managers, helped by decentral HR units („tomorrow“)
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continuum of division of responsibilities between HR department and specialist department
responsibilities of specialist dept.
responsibilities of HR dept.
The HR dept. has sole authority.
The HR department offers
support and advice.
The specialoist dept. can only act together with the
HR dept.
The HR dept. can only act together with the specialist
dept.
The HR dept. acts after consulting specialist dept.
The specialist dept. has sole
authority.
1 2 6 5 4 3
Quelle: Wunderer (1995)
Tasks that should be performed solely by the HR department: • venture-significant tasks (e.g. HR marketing). • cross-functional tasks (e.g. conception of an HR development system). • all task that are more economically performed in the HR dept. (e.g. HR administration). • all tasks that require special skills (e.g. labour market research).
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HR Cooperation with Line Managers
• HR Unit
– Develops legal, effective interviewing techniques
– Trains managers in conducting selection interviews
– Conducts interviews and testing
– Sends top three applicants to managers for final review
– Checks references
– Does final interviewing and hiring for certain job classifications
• Managers
– Advise HR of job openings
– Decide whether to do own final interviewing
– Receive interview training from HR unit
– Do final interviewing and hiring where appropriate
– Review reference information
– Provide feedback to HR unit on hiring/rejection decisions
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HR Planning
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Factors That Determine HR Plans
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Human Resource Planning
• Human Resource (HR) Planning – The process of analyzing and identifying the need for and availability of human resources so
that the organization can meet its objectives.
• HR Planning Responsibilities – Top HR executive and subordinates gather information from other managers to use in the
development of HR projections for top management to use in strategic planning and setting organizational goals
Overall Strategic Plan
Human Resources Strategic Plan
HR Activities
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HR Planning Process
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Planning
• Planning of quantitative personnel requirements – Influencing factors – Procedures and methods – Considerworking time models – Long range personnel requirements – Retirements/locational change – Short- and medium term personnel requirements – seasonal, social and personal
fluctuations • Planning of qualitative personnel requirements
– Recording of job requirements and determination of existing qualifications – according to groups:
• professional groups • qualification groups • fields of activity
– job description – requirements profile – capability profile
Work analysis (job analysis, Task analysis)
The result of the task analysis is the work analysis and the specification of requirements.
Job description The job description comprises: illustration of instances Illustration of tasks Illustration of achievements
Requirements profile The requirements profile defines the amout of requirements of specific tapes of requirements.
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Staffing
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Job Description
• Job : A group of related activities and duties
• Position: the different duties and responsibilities performed by only one employee
• Job Title: status of employee, identify duty and level occupied
• Job Description: Statement of the tasks, duties, and responsibilities of a job to be performed
• Job Specification: skills required to perform the job and physical demands of the job
• Job Analysis: the process of obtaining information about jobs by determining what the duties, task, or activities of jobs are; using data to develop job description and job specification, and to improve organizational performance and productivity
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Job Requirement
RECRUITMENT: determine recruitment qualification !
SELECTION: provide job duties and job specification for selection process!
PERFORMANCE APPRAISAL: provide performance criteria for evaluating employee !
TRAINING and DEVELOPMENT: determine training
needs and develop instructional programs!
COMPENSATION MANAGEMENT: Provide basis for determining employees’ rate of pay
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The Process of Job Analysis
Source of Data Job Analyst Employee Supervisor!
Job Description Task
Duties Responsibilities!
Human Resources Functions!
Job Specification Skill Requirement Physical demands
Ability needed!
Job Data Tasks
Performance Standards
Responsibility Knowledge Skills and
Experience Required
Job Context Duties!
Methods of Collecting Data
Interview Questionnaire
Records Observation!
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Determining Job Requirements
- What employee does - Why employee does it - How employee does it!
Determining Job Requirements!
- Summary statement of the job - List of essential functions of the
job!
- Employee Orientation - Employee Instruction
- Disciplinary Action
- Personal qualifications required in terms of skills, education and
experience !
- Recruitment - Selection
- Development!
Nature of: Basis of:
JOB ANALYSIS
JOB DESCRPTION
JOB SPECIFICATION
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Criteria of a Job Specification(Example)
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Design Principles of Job Requirements
• Relevance– only take essential characteristics of the position into account
• Completeness– include all characteristics of the position • Absence of overlap– one-time survey of facts • Clearness, objectivity– definition and survey of facts has
to be verifyable interpersonally • Simplicity– characteristic values have to be easily
identifyable • Reliability– ascertion of characteristics has to be reliable • Validity– test results have to reflect the actual
requirements • Efficiency– cost-benefit analysis
Quelle: Scholz (2000)
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Job Requirement Profile (Example)
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Starting Position on the Personnel Market
• Major changes in businesses and environment lead to increased competition for the best employees.
Quelle: MCI Symposium 2007
Demographic development
Dynamics, complexity, digitalisation, globalisation of
markets
Highly specific task- and job descriptions
Mobility and fluctuation of workforce
Change in values (e.g. post-materialism)
„fight for the best employees“
Companies face a new situation of competition:
Professional HR-marketing gains in importance
Orientation of organizational communication towards job market
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• As an employer, you are only competitive if you can keep the promises you make.
Employer quality + Employer image = Employer attractivity
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The employees‘ perspective: where is the difference?
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Why do you need an employer brand-concept?
• The employer brand positions the company on the market and influences the development of preferences of potential employees
Quelle: Jäger (2007)
total set
aware- ness set
proce- sed set
relevant set
chosen object
unaware- ness set
All employers Known employers
Selected employers
Accepted employers decision
foggy set
hold set
reject set
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External Communications
• Marketing and Promotion of the value proposition to the outside (External Employer Branding) by a coordinated HR marketing-mix
HR marketing-mix
Supply policy Job profile, job design:
physical environment, process environment, HR development
Communication policy Recruiting-fairs, jobboards,
recruiting-websites, „classic“ job ads in newspapers and
magazines etc.
Payment policy Substantive elements of
payment and benefits
Availability policy Definition of procurement
options: direkt procurement, HR
consultant, headhunter, etc.
Quelle: MCI Symposium 2007
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Internal Communications
• Behavioral Branding refers to the process of anchoring brand identity in the employees‘ heads in order to promote brand compliant behavior and strenghten the company brand.
Communication tools • Employee magazines • Assemblies • Circulars • Performance reviews • Informal discussions
Quelle: MCI Symposium 2007
understand internalize live
employee
Brand identity
internal
shape Brand image
external
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Awards 2010 Large European Companies
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What is a „Great Place to Work©“
! a workplace where employees are able to !
employee
management
colleagues own activities
! trust those they work for.
! be proud of what they are doing.
! enjoy working with colleagues.
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Ways of recruitment
recruitment
internal external
No changes concerning
existing employment
contracts
changes concerningexistin
g employment contracts
Additional work such as
overtime, extra shifts
Holiday shifts HR development
Horizontal transfer and
vertical promotion
Conversion of part-time to
full-time
Vocational education and training such as retraining
and acquisition of apprentices
Personnel-leasing
New employees: Full-time vs. Part-time,
temporary vs. unlimited
Short-term Long-term
Source: Hentze (1991)
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Advantages and Disadvantages of Internal and External Recruiting Sources
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Internal Recruiting
• Organizational Databases – Profiles containing background and KSA
information on current employees that allow for key word searches to locate suitable candidates for open positions and career development.
– Skills Management System(s)
• Job Posting – A system in which the employer provides
notices of job openings and employees respond by applying.
• Promotions and Transfers – Upward and lateral movements of employees
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Measures and sources of external recruitment
rather passive measures Rather active measueres
• Self-promotion • Register of candidates • Placement by
unemployment agency • Personnel leasing
• HR consultants and brokers • Employment agencies and headhunters • Billboards and notices • Job ads in print media • Recruitment via internet – E-Recruiting
• Companies‘ homepages „Job Posting“ • Self-applicants-services • Virtual recruiting fairs • Recruiting-games • Internet job sites/career websites • Newsgroups • Virtual communities
• College-/university recruiting • Recruitment / recommendation by employees • Personal contact with potential candidates • Appeal to young professionals • PR (open house, etc.) • Labor Unions
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Internet Recruiting
• Advantages
– Recruiting cost savings
– Recruiting time savings
– Expanded pool of applicants
– Morale building for current employees
• Disadvantages
– More unqualified applicants
– Additional work for HR staff members
– Many applicants are not seriously seeking employment
– Access limited or unavailable to some applicants
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What to Include in an Effective Recruiting Ad
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Process of personnel selection
Evaluation of application documents ! Professional competence and experience ! Overall development in CV
Selection interview ! Clarify unresolved questions, evaluate social behavior by critical
questions ! get to know attitudes, capture expectations
Additional tests and procedures ! Intelligence tests, performance and concentration tests, personality
tests, assessment-center
Job interview ! Completing existing information ! First process of negotiating premiums and incentives (payment,
working hours, vacation days etc.)
Employment Refusal • letter
Electronic application ! Electronic management of
candidates (profiling) ! online-tests, recruiting-games
Postal application ! Put documents together
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Procedure of Selection Interview
Quelle: Schuler (1995)
Start Short informal conversation, try for a pleasant and open atmosphere, possibly presentation of company or job, no assessment
Self-presentation of applicant
For a few minutes, candidate talks about his professional and personal background, assessment according to requirement-related dimensions
Free talk Interviewer relates to the self-presentation and application papers and asks unresolved questions, summarising assessment of impression
Questions related to biography
Biographical questions derived from the requirements analysis, evaluation according to behavioral dimensions
Realistic job information
Interviewer gives balanced information about workplace and company, transition to situational questions
Situational questions Constructed situational questions assessed according to behavioral dimensions
Conclusion Questions asked by candidate, contract preliminaries, summary, saying goodbye, other agreements
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Selection procedure
• Test procedures • Work samples • Assessment centers
• Computer assisted simulations • Business simulations • Stress interview
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Main Concepts of Judgemental Appraisal Methods
Job evaluation Personality assessment
Performance appraisal
Evaluation of potential
Quelle: Henzte (1980), Schuler/Prohaska (1999)
procedure: • Free depiction of impressions • Classification procedures • Identification and selection procedures • Ranking procedures
procedure: • Appraisal interview • Psychological testing • Biographical questionnaire • Work samples • Assessment centers
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Appraisal of Managers
• Assessment Center: simulated job activities • Evaluation by Superiors • Peer Ratings: Good predictors of promotion • Self-Evaluation: Leniency is a concern • Evaluation by Sub-ordinates: upward feedback. Good
predictor of managerial success. Must be anonymous • 360 Degree Feedback: Combines evaluations from a
number of sources.
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Evaluation Errors and Appraisal Pitfalls
• Social deceptions of perception – Our eyes and memory betray us!
• Assessment distortions – In some way, the judge deliberately uses different assessment criteria – Anchored in corporate culture („no fixed rules of the game“)
• Assessment failure – Differentiation is made according to the assesment grades – Due to strategic considerations, grades are issued according to „non-performance“
criteria
• Discrimination against women • Part-time employees
„Each assessment contains subjective elements!“
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Social Misperceptions
• First Impression (within a few seconds antipathy/sympathy develops, people with similar attributes have an advantage) Similar-to-me effect
• Self-Perception (personal standards always influence appraisals) • Tendency to Rate as Average (the more uncertain the assessment of the
judge, the higher the tendency to rate as average) • Contrast Effect (a weak colleague is perceived differently by stronger
colleagues as by even weaker colleagues) • Halo Effect (special individual performance oushines other performances) • St. Nicholas Effect (previously achieved proficiency level matters) • Pressure of Conformity (the social need for affiliation influences the
perception) • Good and Bad Mood (choose a neutral temper) • Stereotypes (emotionally tinged drawers of our perception; candidness,
tolerance, self-criticism, challenging and questioning oneself are crucial) • The Victim as Perpetrator – Good-Impression-Management (selling oneself
well, playing the gallery, schmoozing, bullying etc. " purposefully infleuence the impression of others)
“I only call those fat who are fatter than me!“
Quelle: Dulisch (2002)
Who is a German civil servant?
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Appraisal Distortion
• Mildness Effect (Evaluating the willingness for exertion rather than the tangible performance; not wanting to hurt anybody‘s feelings; “We only have good employees“ as part of the corporate self-image)
• Closeness Effect (close collaboration allows a more positive appraisal; makes knowing and respecting each other possible)
• Hierarchy-Effect (the higher the hierarchic status, the better the appraisal - the status obscures the actual performance)
• Benjamin Effect (social comparitive process: the younger the person and the shorter his/her time with the company, the stricter the appraisal – “Age takes precedence over performance“– “Everybody gets a turn eventually!“)
• Glue Effect (Status-quo Effect) (the appraisal history influences the appraisal in progress– previous performance appraisals are “glued to“ a person – We stick to the status-quo, because deviating from it would mean: having to act, making new decisions, taking responsibility and, if necessary, enduring conflicts.)
Quelle: Dulisch (2002)
“An employee cannot receive a better appraisal than his boss!“
“The only man who behaves sensibly is my tailor; he takes my measurements anew every time he sees me, while all the rest go on with their old measurements and expect me to fit them” George Bernard Shaw
Employee appraisals are primarily evaluations of relationships, and secondly evaluations of people. (Oswald Neuberger) Don’t be impressed by any expert telling you: ”I’ve been doing it this way for twenty years, my friend!” – He could have easily been doing something wrong for twenty years. (Kurt Tucholsky)
>>I want to play fair, so you all get the same task: Climb this tree!<<
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for your att
ention!