HRMN 400 - Employee Relations Paper

HRMN 400 – Week 4 Citations

(Caldwell, Hasan, & Smith, 2018)

(Heathfield, 2019)

(O'Toole, 2020)

(Brown, 2020)

(Platz, 2019)

(Heathfield, How to Welcome and Onboard a New Employee Successfully, 2019)

(Pike, 2014)

(Lagunas, 2014)

(Why the Onboarding Experience Is Key for Retention, 2021)

(Vanden Bos, 2020)

(Dubois, 2010)

(Rudy)

(Forbes Coaches Council, 2017)

(Burkett, 2017)

(Little, 2019)

Bibliography Brown, J. (2020, May 20). Employee Orientation: Keeping New Employees on Board. Retrieved

February 2, 2021, from Balance Career: https://www.thebalancecareers.com/employee- orientation-keeping-new-employees-on-board-1919035

Burkett, H. (2017, June 1). Reinvent Your Onboarding Process. Retrieved February 2, 2021, from HRCI: https://www.hrci.org/community/blogs-and-announcements/hr-leads- business-blog/hr-leads-business/2017/06/01/reinvent-your-onboarding-process

Caldwell, Hasan, & Smith. (2018). New Employee Onboarding - Psychological Contracts and Ethical Perspectives. Retrieved February 3, 2021, from University of Maryland Global Campus: https://learn.umgc.edu/d2l/le/content/543604/viewContent/20431499/View

Dubois, L. (2010, December 13). How to Make an Employee's First 90 Days Successful. Retrieved February 2, 2021, from Inc.com: https://www.inc.com/guides/2010/12/how-to- make-an-employees-first-90-days-successful.html

Forbes Coaches Council. (2017, January 30). Seven New Onboarding Strategies You'll See This Year. Retrieved February 2, 2021, from Forbes: https://www.forbes.com/sites/forbescoachescouncil/2017/01/30/seven-new-onboarding- strategies-youll-see-this-year/?sh=4cc048957b4d

Heathfield, S. M. (2019, September 30). How to Welcome and Onboard a New Employee Successfully. Retrieved February 2, 2021, from Balance Careers: https://www.thebalancecareers.com/how-to-welcome-a-new-employee-1918829

Heathfield, S. M. (2019, October 31). New Employee Orientation: Employee Onboarding. Retrieved February 3, 2021, from Balance Careers: https://www.thebalancecareers.com/new-employee-orientation-employee-onboarding- 1918195

Lagunas, K. (2014, November 25). New Hire Onboarding as a Driver of Employee Engagement. Retrieved February 2, 2021, from Training Mag: https://trainingmag.com/new-hire- onboarding-as-a-driver-of-employee-engagement/

Little, S. (2019, February 26). What is Employee Onboarding -- And Why do You Need It? Retrieved February 2, 2021, from SHRM Blog: https://blog.shrm.org/blog/what-is- employee-onboarding-and-why-do-you-need- it?_ga=2.110698565.1743394787.1542496676-1232592599.1505600439

O'Toole, B. (2020, December 29). Tips for a Better New Employee Orientation. Retrieved February 2, 2021, from Balance Careers: https://www.thebalancecareers.com/tips-for-a- better-new-employee-orientation-1916757

Pike, K. L. (2014). New Employee Onboarding Programs and Person-Organization Fit: An Examination of Socialization Tactics. University of Rhode Island. Seminar Research Paper Series. Retrieved February 2, 2021, from https://digitalcommons.uri.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&ht tpsredir=1&article=1043&context=lrc_paper_series

Platz, B. (2019, July 13). Steps for Creating a Positive New Employee Onboarding Experience. Retrieved February 3, 2021, from Balance Careers: https://www.thebalancecareers.com/employee-onboarding-positive-new-employee- experience-1918830

Rudy, L. J. (n.d.). Employee Orientation and Training. In Principles of Management. Lumen Learning. Retrieved February 2, 2021, from https://courses.lumenlearning.com/suny- principlesmanagement/chapter/employee-orientation-and-training/

Vanden Bos, P. (2020, February 6). How to Build an Onboarding Plan for a New Hire. Retrieved February 2, 2021, from Inc.com: https://www.inc.com/guides/2010/04/building-an-onboarding-plan.html

Why the Onboarding Experience Is Key for Retention. (2021, January 23). Retrieved February 2, 2021, from Gallup: https://www.gallup.com/workplace/235121/why-onboarding- experience-key-retention.aspx

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New Employee Onboarding–

Psychological Contracts and Ethical Perspectives

Abstract

Purpose – This paper clarifies the importance of Human Resource Professionals (HRPs) improving the onboarding and assimilation of new employees and explains why this important task is so essential as part of the psychological contract between employers and those new organization members.

Design/methodology/approach – This paper is a conceptual paper that identifies a problem based upon findings in the management literature, explains the nature of psychological contracts and ethical duties, and identifies action steps for improving the new employee onboarding process.

Findings – The paper identifies a ten.-step model for improving employee onboarding and explains why HRPs and those who oversee them need to reexamine their assimilation of new organization members.

Originality/value – This paper contributes to the management literature by addressing a major problem that is poorly managed in many organizations. The mismanagement of this important onboarding process undermines organization effectiveness, decreases trust, and violates the psychological contract held by new employees about the organization’s duties owed to them.

Key Words: Employee Onboarding, Employee Assimilation, New Employee Orientation, Psychological Contract, Duties of Human Resource Professionals.

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New Employee Onboarding–

Psychological Contracts and Ethical Perspectives

Assimilating new employees into an organization is an important task of Human

Resource Professionals (HRPs) and an essential element of their responsibilities as technical

experts in their discipline (Huselid, et al., 2009, pp 196-199). Ineffective onboarding destroys

benefits achieved by hiring talented employees and increases the likelihood that the hard work

spent in recruiting and selecting those employees will be wasted (Smart, 2012). Because many

organizations view their onboarding process as an expense rather than an investment, they

adopt a short-sighted approach to the process. The predictable result from this false economy

is that the transition into the organization for new employees will be painful--leading to

potential underperformance, minimizing the organization’s capability to fully utilize the skills

and abilities of these new employees.

The purposes of this paper are 1) to identify why improving this important Human

Resource Management (HRM) function greatly benefits those new employees and the

organization itself, 2) to clarify the ethical obligations implicit in new employee onboarding, and

3) to provide top managers and HRPs with a model for improving the new employee

onboarding process that meets the ethical expectations and psychological contracts of

incoming employees. The paper begins with a brief explanation of the onboarding process and

the nature of the psychological contract that exist between an organization and its employees.

Building upon a model introduced by the University of Michigan ethics scholar, Larue Hosmer, it

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then presents twelve ethical perspectives that identify how employees perceive the nature of

their onboarding process. The paper then introduces a ten-step model for conducting a top

quality onboarding process, identifying how each of those steps honors the ethical expectations

of the psychological contracts of new employees. The paper concludes with the contributions

of this paper.

The Onboarding Process

Onboarding is the process of introducing a new employee into his or her new job;

acquainting that employee with the organization’s goals, values, rules and policies, and

processes; and socializing the employee into an organizational culture (Watkins, 2016).

Wanous and Reichers (2000) explained that the new employee orientation process occurs while

employees are under a tremendous amount of stress. The typical new employee onboarding

process provides employees with a volume of information that is overwhelming, impractical,

and impossible for new employees to incorporate within a short period of time. In compiling

research about the state of the art of employee onboarding, Srimannarayana (2016) noted that

some organizations included too many complex tasks and information for employees to

realistically digest while other organizations offered too few items that fail to adequately

prepare employees.

Bauer (2010) has explained that an effective onboarding process included four critical

building blocks to improve performance, inoculate against turnover, and increase job

satisfaction:

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• Compliance: This building block is the lowest level of onboarding and includes reviewing or teaching employees about basic legal and policy-related rules and regulations associated with working in the new organization.

• Clarification: This key function ensures that employees understand their new jobs and all its related expectations. Frequently, this function is poorly handled and lacks specificity.

• Culture: Providing employees with a sense of formal and informal organizational norms is often overlooked because members of the organization assume that the organization’s values, assumptions, and norms are easily understood.

• Connection: This key activity refers to creating vital interpersonal relationships and explaining information networks essential for employees to perform successfully.

Unfortunately, Acevedo and Yancey (2010, 349) concluded that most organizations do a

mediocre job of assimilating new employees and, few organizations utilize its full scope or

potential.

Bauer (2010) explained that effective onboarding has short-term and long-term benefits

for both the new employee and the organization, noting that employees effectively assimilated

into an organization have greater job satisfaction and organizational commitment, higher

retention rates, lower time to productivity, and have greater success in achieving customer

satisfaction with their work. In contrast, poor onboarding leads to lower employee satisfaction,

higher turnover, increased costs, lower productivity, and decreased customer satisfaction.

Holton (2001, 73) noted in his study of factors associated with onboarding that “(t)he most

important tactic (for effective onboarding) was allowing new employees to fully utilize their

skills and abilities.” Unfortunately, most organizations focus on establishing managerial control

systems rather than on building commitment and empowering employees (cf. Pfeffer, 1998).

Onboarding and the Psychological Contract

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The employment relationship is inherently an interpersonal relationship with profound

ethical implications associated with HRM (Hosmer, 1987). That relationship is based upon social

exchange theory in which the employer pays money to the employee in exchange for his or her

services (Cropanzano & Mitchell, 2005). The expectations in this relationship frame the

psychological contract that exists between the two parties – a contract that is typically

unwritten and that rarely perfectly coincides but reflects the reciprocal obligations of the

parties (Rousseau, 1995; Robinson & Rousseau, 1994). Consistent with expectancy theory, new

employees are also concerned about 1) how they will benefit as an organization member, and

2) whether it is feasible for them to obtain promised outcomes (Shea-Van Fossen &

Vredenburgh, 2014). The implied psychological contract between employers and employees

has evolved over the past several decades (Pfeffer, 1998), but a growing body of evidence

confirms that employers who create relationships with employees based upon high trust create

organizational cultures in which employees exhibit increased extra-role behavior, are more

creative and innovative, and more profitable than employees in comparable organizations (cf.

Beer, 2009).

Well qualified employees who add the greatest value, or create the most organizational

wealth, for their employers expect to be treated with dignity and respect; given the

opportunity to advance in their organizations; be treated as valued “owners and partners” in

improving the organization; and valued as “Yous,” or as unique individuals, rather than as “Its,”

or fungible commodities with no individual identity (Buber, 1996; Covey, 2004; Block, 2013).

Although some employees are highly committed and inherently dedicated to giving extra-mile

performance, even in the face of poor treatment and ineffective leadership (Organ, et al.,

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2005), research evidence documents that employers who treat employees with high trust, who

demonstrate a personalized approach to employees as valued partners reap the rewards of

better quality, improved employee performance, and increased employee satisfaction (Pfeffer,

1998; Paine, 2003; Smith, et al., 2016).

Louis (1980) examined the problem of employee dissatisfaction with the new employee

entry process more than thirty-five years ago, yet new employees continue to be surprised by

the inadequacies of many organizations’ onboarding systems (Lawson, 2015, Ch. 5). Although

the expectations of incoming employees about the perceived duties owed to them in the

onboarding process may vary, employees feel betrayed when those duties are breached – with

an inevitable decrease in organization commitment (Morrison & Robinson, 1997). A realistic

job preview reduces surprises, clarifies supervisor expectations, provides an opportunity for

employees to ask questions about desired outcomes, and clarifies the psychological contract

(Tekleab et al, 2013).

Hosmer (1995) explained that trust and ethical expectations are closely related and

derived from well-accepted philosophical foundations. Table 1 presents twelve ethical

perspectives, a brief summary of each perspective, and a summary of how new employees

perceive onboarding duties owed to them.

==== Insert Table 1 about Here ===

Each ethical perspective confirms that it is in the best interests of an employer and their

employees for the onboarding process to occur effectively and with high quality (cf. Hosmer,

1995). New employees typically perceive that they are an excellent onboarding process as part

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of the psychological contract owed to them (DeVos, et al., 2005; Klein & Weaver, 2000). The

evidence also confirms that effective onboarding serves all stakeholders, benefiting

organization both long-term and short-term (Bauer, 2010).

A Ten-Step Model for Quality Onboarding

HRPs who incorporate highly effective onboarding programs honor the psychological

contract expectations of their new employees and fulfill their strategic role as ethical stewards

(Huselid, et al., 2009;). The following is a ten-step model for quality onboarding, including steps

prior to the actual arrival of a new employee.

1. Establish the Relationship Online Immediately after Hiring. Typically, the decision to

hire an employee occurs well before the employee actually begins work. Initiating an

online relationship enables an organization to create an immediate personalized

relationship with a new employee--a well-recognized element of effective leadership

(Kouzes & Posner, 2012, Ch. 1) and an opportunity for an employee to learn a great deal

about the organization.

2. Appoint a Trained Mentor-Coach for Each New Employee – The evidence indicates the

quality of mentoring for new employees can make a significant contribution to

employee socialization and learning (Ragins, et al., 2000). Mentoring can be highly

effective at helping employees to improve employee work attitudes, engagement, and

extra-role behavior (Van Dyne & Pierce, 2004).

3. Focus the Onboarding on Relationships and Networks – Assisting new employees to

create relationships with key organization personnel can shorten the socialization and

assimilation process. Sharing information with key organization personnel about the

employee’s qualifications and assisting the employee to become familiar with the

organization’s values communicates to the incoming employee that (s)he is an

important contributor to the organization’s success (Brown, 2007; Rousseau, 1990). The

relationship with the supervisor and the natural work group are both essential elements

in this transition (Parker, et al., 2013).

4. Prepare a Well-Developed and Complete New Employee Orientation Booklet –

Integrating the many diverse pieces of information that new employees needs in

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relocating; acquainting the employee with the community and organization culture;

identifying the organization’s values, mission, and history; explaining employee benefits

and policies; completing required paper work and documentation; and identifying key

job tasks in contributing to the organization’s ability to create value enables a new

employee to obtain this critical information and is consistent with employee

psychological contract expectations (Sutton & Griffin, 2004). Providing that information

in one location also facilitates an employee’s ability to share that information with a

significant other.

5. Prepare Physical Location, Office, and Staffing Support Prior to Onboarding – A

properly equipped office and appropriate staffing support enable an employee to get

off to the best possible start. Initiating those actions prior to a new employee’s arrival

demonstrates that the organization has carefully thought through the new employee’s

assimilation (cf. Marks, 2007).

6. Assist in Transitional Logistics – Recognizing that a new hire may have had to relocate,

sell or buy a home, arrange for schooling for children, and/or make other stressful

transitions of significant proportion, reaching out to new employees to assist them in

those time consuming tasks communicates that an employer is aware of the need for

work-family balance and is committed to the employee’s welfare (Dewe, et al., 2010).

7. Clarify and Affirm Priorities and Expectations – Immediately upon the new employee’s

arrival to the organization, the employee’s supervisor should meet with the new

employee to clarify job responsibilities, key outcomes, and the employee role with the

entire work group; identify key resources and the role of the supervisor; and listen

carefully to the employee’s personal goals and job-related concerns. Creating a high

trust relationship with the new employee is facilitated by such a meeting in addition to

building employee commitment (Leana & Van Buren, 1999).

8. Engage, Empower, and Appreciate the Employee – Employees actively engaged as

owners and partners in an organization are more likely to contribute creative ideas, add

organizational value, and improve organization productivity (Adkins, 2016; Smith, et al.,

2016; Beer, 2009; Saks, 2006;). Building employee self-efficacy and confidence reduces

employee stress, facilitates assimilation into the organization, and enhances employee

performance (Peterson, et al., 2011).

9. Involve Upline in Onboarding Training and Orientation – Actively involving Top

Management Team members and supervisors in the new employee orientation

process–particularly in explaining organizational values and cultural factors–

communicates to employees that organizational leaders are committed to those values

and that they are prepared to perform according to the values that they espouse

(Schein, 2010; Kouzes & Posner, 2012).

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10. Create an Ongoing Coaching Process – As part of the new employee orientation, both

the mentor and supervisor should identify the resources available to assist the

employee to become a highly productive contributor and the checkpoints that will be

used to help the new employee to be assimilated into the organization to achieve time-

targeted performance results (Bachkirova, et al., 2011).

Each of these ten steps communicates to the new employee that (s)he is a priority of the

organization. This ten-step process communicates, “We value you and want you to succeed. We care

about your success, and we have carefully thought through our responsibility to bringing you on board

successfully so that you can have a great experience in our company.” In the words of DePree (2004,

Ch. 1), this approach to the onboarding process and to helping the employee to succeed honors the

“covenantal” obligation of leaders to be “a servant and a debtor” committed to each employee’s well-

being and success. That psychological contract expectation of being valued as a person is the desired

hope of new employees as they transition into organizations. Although all ten of these recommended

steps might not always be practical in every situation, this model provides a guideline which has

applicability for many organizations in a variety of disciplines.

Caldwell and colleagues (2015) have provided a Virtuous Continuum of ethical conduct for

leaders and organizations for evaluating performance outcomes and ethical duties. That continuum,

indicated as Diagram 1, suggests that the responsibility of organizations and leaders is to optimize value

creation and organizational wealth by pursuing the best intetests of all stakeholders.

==== Insert Diagram One about here ====

Similarly, Cameron (2011) has explained that virtuous leadership is also “responsible leadership” and the

obligation of leaders to those whom they serve. A growing body of evidence confirms that honoring this

virtuous responsibility creates organizational wealth, greater commitment, improved customer service,

and better quality (Cameron & Spreitzer, 2012; Beer, 2009; Pfeffer, 1998).

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Contributions of the Paper

Like many practical HRM issues, onboarding of employees is a profoundly ethical process with

implications for the psychological contract between the employer and employee (Hosmer, 1987). This

paper makes five significant contributions.

1) It identifies the nature of onboarding new employees as an ethical and practical opportunity

to improve the relationship between new employees and their organizations. The

responsibilities of HRPs and immediate supervisors in assimilating new employees honors

“covenantal” obligations that benefit organizations and the individuals working for them

2) It identifies the ethical nature of onboarding in comparison with twelve highly regarded

ethical perspectives and as a key element of psychological contracts. By elaborating on the

ethical nature of the onboarding process, this paper integrates those ethical perspectives with

the expectations of employees directly impacts their trust, commitment, and willingness to

engage in value-creating behaviors.

3) It confirms the value of a Virtuous Continuum approach to examining the current practices of

onboarding for HRPs. Honoring duties owed to stakeholders and optimizing value creation are

responsibilities of HRPs and supervisors and the Virtuous Continuum is a useful criterion for

evaluating an organization’s onboarding process (Caldwell, et al., 2014).

4) It identifies a ten-step model for onboarding with each step identifying how each onboarding

activity strengthens the ability of an organization to honor ethical and psychological contract

expectations of employees. The specifics of this proposed model comply with best practices for

onboarding in HRM (Bauer, 2010) while meshing with ethically-related assumptions about the

psychological contract (Rousseau, 1990).

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5) It provides an opportunity for practitioners and scholars to increase their dialogue in

promoting the discussion of ethics in practice. The link between academicians and practitioners

is often weak and scholars are frequently criticized for being impractical (Van Buren &

Greenwood, 2013; Caldwell, 2014). This paper bridges that gap and provides an opportunity for

scholars and HRPs to work together to improve the onboarding process.

Conclusion

Although organizations depend greatly upon the ability of their employees to add value and

improve organizational creativity (Christensen, 2011; Beer, 2009), they often overlook the importance of

helping employees to succeed (Pfeffer, 1998). Van Buren and Greenwood (2013, 716) have noted the

importance of “involvement of business ethics scholarship in debates about important ethical issues in

employment practices.” By addressing the ethical implications of onboarding and assimilation in the

psychological contract that exists between new employees and their organizations, this paper furthers

that purpose while providing specific suggestions for improving a key HRM process.

As HRPs improve the onboarding and assimilation process for new employees, they enhance

each employee’s reason for wanting to connect as invested partners in the success of the organization,

the work group, and the supervisor with whom they work (Yamkovenko & Hatala, 2015). By improving

onboarding and new employee assimilation, HRPs and organization leaders honor the psychological

contracts and ethical assumptions of employees’ and create an organizational culture that generates

greater long-term wealth while serving the needs of their work force (Caldwell, et al., 2011).

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References

Acevedo, J. M. & Yancey, G. B., (2011). “Assessing New Employee Orientation Programs.” Journal of Workplace Learning, Vol. 23, No. 5, pp. 349-354.

Bachkirova, T., Jackson, P., and Clutterbuck, D., (2011). Coaching and Mentoring Supervision: The Complete Guide to Best Practice. Berkshire, England: McGraw-Hill.

Bauer, T. N,, (2010). “Onboarding New Employees: Maximizing Success.” The SHRM Foundation’s Effective Practice Guideline Series. Alexandria, VA: SHRM obtained online on September 2, 2016 at

http://www.shrm.org/about/foundation/products/Pages/OnboardingEPG.aspx.

Beer, M., (2009). High Commitment High Performance: How to Build a Resilient Organization for Sustained Advantage. San Francisco, CA: Wiley.

Bierema, L. L., and Hill, J. R., (2005). “Virtual Mentoring and HRD.” Advances in Developing Human Resources, Vol. 7, No. 4, pp. 556-568.

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Christensen, C. M., (2011). The Innovator’s Dilemma: The Revolutionary Book that Will Change

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HRMN 400 – Week 3 Citations

(Pulakos, 2005)

(OpenStax College)

(Burokas, Module 15: Recruiting and Selecting New Employees)

(U.S. Equal Employment Opportunity Commission, 2007)

(Doyle, Behavioral Interviewing Techniques and Strategies, 2020)

(Heathfield, Illegal Interview Questions and What You Need to Know..., 2020)

(Heathfield, What Are Negligent Hiring Claims?, 2020)

(HG.org, n.d.)

(Doyle, Questions Employers Ask When Conducting a Reference Check, 2020)

(U.S. Office of Personnel Management, n.d.)

(Heathfield, How to Make a Job Offer to a Prospective Employee, 2019)

(Burokas, The Job Offer)

(Bika, n.d.)

(van Vulpen, 2017)

(Selecting Employees Without Getting into Legal Trouble, n.d.)

(Williams)

(Heathfield, Top 10 Tips for Hiring the Right Employee—Every Time, 2020)

(Neary, 2016)

(Onley, n.d.)

(Poskey, 2019)

(Heathfield, How to Interview Potential Employees, 2019)

(Heathfield, Ask Right to Hire Right: Effective Interview Questions, 2019)

(Acosta, 2020)

(Burokas, Asking Questions)

(Doyle, What is Included in a Reference Check for Employment, 2020)

(Mauer, 2015)

(U.S. Equal Employment Opportunity Commission, 2014)

(Doyle, Background Checks for Employment, 2020)

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HG.org. (n.d.). What is Negligent Hiring and Retention? Retrieved January 21, 2021, from HG.org: https://www.hg.org/legal-articles/what-is-negligent-hiring-and-retention-31800

Mauer, R. (2015, December 15). Reference Check Checkup. Retrieved January 21, 2021, from SHRM: https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/reference-check- checkup.aspx

Neary, D. (2016, March 4). Are you using this highly effective interview technique? Retrieved January 21, 2021, from OpenSource.com: https://opensource.com/business/16/3/highly-effective- interviewing-technique

Onley, D. (n.d.). These Interview Questions Could Get HR in Trouble. Retrieved January 21, 2021, from SHRM: https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/interview- questions-hr-trouble.aspx

OpenStax College. (n.d.). Selecting Employees. In Industrial Psychology. Lumen Learning. Retrieved January 21, 2021, from https://courses.lumenlearning.com/wmopen- psychology/chapter/industrial-psychology-selecting-and-evaluating-employees/

Poskey, M. (2019, December 5). Best Practices in Interviewing. Retrieved January 21, 2021, from Balance Careers: https://www.thebalancecareers.com/best-practices-in-interviewing-1918489

Pulakos, E. D. (2005). Selection Assessment Guidelines. In SHRM Foundation's Effective Practice Guidelines (pp. 1-60). Alexandria, Virginia: SHRM Foundation. Retrieved January 21, 2021, from SHRM: https://www.shrm.org/hr-today/news/hr- magazine/Documents/assessment_methods.pdf

Selecting Employees Without Getting into Legal Trouble. (n.d.). Retrieved January 21, 2021, from University of Maryland Global Campus: https://learn.umgc.edu/d2l/le/content/543604/viewContent/20431467/View

U.S. Equal Employment Opportunity Commission. (2007, December 1). Employment Tests and Selection Procedure. Retrieved January 21, 2021, from U.S. Equal Employment Opportunity Commission: https://www.eeoc.gov/laws/guidance/employment-tests-and-selection-procedures

U.S. Equal Employment Opportunity Commission. (2014, March 11). Background Checks: What Employers Need to Know. Retrieved January 21, 2021, from U.S. Equal Employment Opportunity

Commission: https://www.eeoc.gov/laws/guidance/background-checks-what-employers-need- know

U.S. Office of Personnel Management. (n.d.). Policy, Data, Oversight: ASSESSMENT & SELECTION. Retrieved January 21, 2021, from OPM: https://www.opm.gov/policy-data- oversight/assessment-and-selection/other-assessment-methods/reference-checking/

van Vulpen, E. (2017). 19 Recruiting Metrics You Should Know About. Retrieved January 21, 2021, from Analytics in HR: https://www.analyticsinhr.com/blog/recruiting-metrics/

Williams, L. (n.d.). Reading: Hiring. In Introduction to Business. Lumen Learning. Retrieved January 21, 2021, from https://courses.lumenlearning.com/wmintrobusiness/chapter/reading-hiring/

S H R M F O U N D A T I O N ’ S E F F E C T I V E P R A C T I C E G U I D E L I N E S

Selection Assessment Methods A guide to implementing

formal assessments to build

a high-quality workforce

Elaine D. Pulakos

Elaine D. Pulakos

S H R M F O U N D A T I O N ’ S E F F E C T I V E P R A C T I C E G U I D E L I N E S

Selection Assessment Methods A guide to implementing

formal assessments to build

a high-quality workforce

This publication is designed to provide accurate and authoritative information regarding the subject matter covered. Neither the publisher nor the author is engaged in rendering legal or other professional service. If legal advice or other expert assistance is required, the services of a competent, licensed professional should be sought. Any federal and state laws discussed in this book are subject to frequent revision and interpretation by amendments or judicial revisions that may significantly affect employer or employee rights and obligations. Readers are encouraged to seek legal counsel regarding specific policies and practices in their organizations.

This book is published by the SHRM Foundation, an affiliate of the Society for Human Resource Management (SHRM©). The interpretations, conclusions and recommendations in this book are those of the author and do not necessarily represent those of the SHRM Foundation.

©2005 SHRM Foundation. All rights reserved. Printed in the United States of America.

This publication may not be reproduced, stored in a retrieval system or transmitted in whole or in part, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior written permission of the SHRM Foundation, 1800 Duke Street, Alexandria, VA 22314.

The SHRM Foundation is the 501 (c)3 nonprofit affiliate of the Society for Human Resource Management (SHRM). The SHRM Foundation advances the human resource profession and increases the effectiveness of HR professionals through research, innovation and research-based knowledge. The Foundation is governed by a volunteer board of directors, comprised of distinguished HR academic and practice leaders. Contributions to the SHRM Foundation are tax-deductible.

For more information, contact the SHRM Foundation at (703)535-6020. Online at www.shrm.org/foundation.

Forward . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . v

Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . vii

About the Author . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ix

Effective Practice Guidelines: Selection Assessment Methods . . . . . . . . . . . . . . . . . . . 1 Job Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Assessment Methods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Criteria for Selecting and Evaluating Assessment Methods . . . . . . . . . . . . . . . . . 16 Additional Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Summary and Conclusions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Sources and Suggested Readings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

iii

Table of Contents

The SHRM Foundation Board of Directors appreciates how difficult it is for HR prac- titioners to access current research findings and incorporate them into their own HR practices.

Human resource professionals juggle multiple responsibilities and do not have time to read long research reports, no matter how beneficial. Realistically, most HR practitioners will seek guidance from research findings only if they are presented in a clear, concise and usable format.

To make research more accessible, the SHRM Foundation created this series of reports titled Effective Practice Guidelines. The first report on performance management was pub- lished in 2004. The Foundation will publish new reports on different HR topics each year. You are now reading the second report in the series: Selection Assessment Methods.

Here is the series concept: A subject matter expert with both research and practitioner experience is selected to prepare the guidelines. The author distills the research findings and expert opinion into specific advice on how to conduct effective HR practice. To provide a convenient reference tool, a substantial annotated bibliography is included with each report. We believe this new product presents relevant research-based knowl- edge in an easy-to-use format. We look forward to your feedback to let us know if we’ve achieved that goal.

Our author is Dr. Elaine Pulakos, executive vice president and director of the Personnel Decisions Research Institutes (PDRI) Washington, D.C. office. Dr. Pulakos is one of the country’s leading experts on selection techniques, both as a researcher and a consultant, and she has provided the very best guidance available on this topic.

Our vision for the SHRM Foundation is: “The SHRM Foundation maximizes the impact of the HR profession on organizational decision-making and performance, by promoting innovation, research and the use of research-based knowledge.”

We are confident that this new series of Effective Practice Guidelines takes us one step closer to making that vision a reality.

Herbert G. Heneman III, Ph.D. Director of Research, 2005 SHRM Foundation Board Professor, School of Business, University of Wisconsin-Madison

v

FORWARD

The SHRM Foundation wishes to thank the following individuals for reviewing this report, providing feedback and helping to shape the finished product:

Howard J. Klein, Ph.D. Associate Professor of Management & Human Resources Fisher College of Business, Ohio State University

Kathleen McComber, SPHR Sr. Director of Human Resources and Org. Development University of Arkansas for Medical Sciences

William A. Schiemann, Ph.D. Chairman & CEO Metrus Group

Patrick M. Wright, Ph.D. Director Center for Advanced Human Resource Studies (CAHRS) Cornell University

The Foundation would also like to recognize the Society for Human Resource Management (SHRM) and the Human Resource Certification Institute (HRCI) for their generous support of SHRM Foundation research and educational projects.

vii

Acknowledgments

Elaine Pulakos is executive vice president and director of the Washington, D.C. office of Personnel Decisions Research Institute (PDRI.) PDRI is a premier consulting firm in the field of indus- trial and organizational psychology. A recognized expert and researcher in the areas of selection and performance appraisal, Dr. Pulakos has over 15 years of experience conducting large-scale job analysis, selection, performance appraisal and career development projects.

A Fellow of the American Psychological Association (APA) and the Society for Industrial and Organizational Psychology (SIOP), Dr. Pulakos is a successful author and has written on the topics of staffing and performance management. She is a past president of SIOP. In addition to authoring numerous publications, Dr. Pulakos recently co-edited two books: The Changing Nature of Performance: Implications for Staffing, Motivation, and Development with Daniel Ilgen, and Implementing Organizational Interventions: Steps, Processes, and Best Practices with Jerry Hedge.

Dr. Pulakos has spent her career conducting applied research in public and private sec- tor organizations, where she has designed, developed and successfully implemented numerous HR systems including staffing, performance management, and career devel- opment and training systems. Dr. Pulakos has also been extensively involved in provid- ing expert advice on EEO-related legal matters and serving as an expert witness and advisor to the Department of Justice, among others. Elaine received her Ph.D. in industrial and organizational psychology from Michigan State University.

ix

About the Author Elaine D. Pulakos, Ph.D.

Organizations compete fiercely in the war for talent. Many invest an enormous amount of money, time and other resources in advertising and recruiting strategies to attract the best candidates. This is because today’s executives understand that one of the most important resources in organizations—if not the most important—is human resources.

Yet, when it comes to actually assessing which job candidates are likely to perform most effectively and make the most significant contributions, a large number of organ- izations employ rudimentary and haphazard approaches to selecting their workforces. This represents a serious disconnect for organizations that purport to have a strategic focus on increasing their competitive advantage through effective talent management. The disconnect stems from the fact that many organizations fail to use scientifically proven assessments to make selection decisions, even though such assessments have been shown to result in significant productivity increases, cost savings, decreases in attrition and other critical organizational outcomes that translate into literally millions of dollars. Thus, there are real and very substantial bottom-line financial results associ- ated with using effective assessments to guide selection decisions.

One reason why more organizations do not use rigorous assessments to select employ- ees is because many executives and HR professionals have misconceptions about the value of using them. Some of the most common misconceptions are presented below.

1

Effective Practice Guidelines: Selection Assessment Methods

Common Misconceptions About Selection Tests1

� Myth: Screening applicants for conscientiousness will yield better performers than screening applicants for intelligence.

� Myth: Screening applicants for their values will yield better performers than screening applicants for intelligence.

� Myth: Integrity tests are not useful because job candidates misrepresent themselves on these types of tests.

� Myth: Unstructured interviews with candidates provide better information than structured assessment processes.

� Myth: Using selection tests creates legal problems for organizations rather than helps solve them.

1 Rynes, S. L., Colbert, A. E., & Brown, K. G. (2002). HR professionals’ beliefs about effective human resources practices: Correspondence between research and practice. Human Resource Management, 41, 149-174.

Another reason why formal assessments are not used more in organizations is that there tends to be a lack of knowledge about the types of assessment methods that research has shown to be most effective for identifying who will perform best on a job.2 This, coupled with the fact that the area of selection testing is inherently technical and difficult to understand, leads many organizational decision makers and HR profes- sionals to shy away from using formal assessments to guide their selection decisions.

A final reason why more organizations do not use effective assessments may be attrib- utable to the multitude of consulting firms selling different selection products and tools. It is important for organizational decision makers and HR practitioners to be educated consumers regarding these products to ensure they are bringing competently developed and effective assessment methods into their organizations.

Most organizations use a funneling approach to selection, where more informal tools and procedures are used initially to reduce the pool of candidates to a manageable number of individuals who may then be put through a more extensive assessment process. Common initial screening devices include resumes, application blanks and ref- erence checks, which are generally used to identify and exclude obvious misfits or poor performers from further consideration. Another initial screening device is the informal meeting or phone interview, which is often used to allow organizational members direct interaction with potential candidates. While these initial screening devices have a useful place in the overall selection process, the focus of this paper is on more formal assessment methods. We specifically focus on those that research has shown to have a proven track record of helping organizations build high-quality workforces by identify- ing individuals who will perform effectively, achieve results and make important con- tributions on the job.

This report has three important goals: � Present and summarize what is known from the research literature about the value

of different types of formal assessment methods that are used to select employees in organizations.

� Remove some of the mystique, complexity and confusion that can drive HR profes- sionals away from implementing formal assessment methods by providing brief tutorials on the most important technical, legal and measurement issues inherent in selection testing.

� Provide a useful roadmap to help make decisions about what assessment methods are most useful and practical in different situations.

2 � Selection Assessment Methods

2 Ryan, A. M., & Tippins, N. T. (2004). Attracting and selecting: What psychological research tells us. Human Resource Management, 43, 305-318.

The report is organized into four major parts. First, a brief discussion of job analysis is presented. Job analysis is important because it provides information that is necessary to make decisions about what types of assessment methods are most appropriate for a given job. Next, to familiarize readers with the array of assessment methods that are available, the second part of the paper provides brief descriptions and examples of the most common tools that research has shown to be effective in predicting who will per- form successfully on a job. The third part of the paper focuses on important criteria to consider in evaluating assessment methods and provides guidance on how to make rational choices among the available alternatives. The final part discusses other issues that are relevant to using assessments, including the mode of administration, utility and legal considerations.

Job Analysis

There are numerous different types of formal assessments that organizations can use to select employees. The first step in developing or selecting an assessment method for a given situation is to understand what the job requires employees to do and, in turn, what knowledge, skills and abilities (KSAs) individuals must possess in order to perform the job effectively. This is typically accomplished by conducting a job analysis.3 4 The portion of a job analysis that focuses on what the job requires individuals to do is often referred to as a job-oriented or task-based job analysis, which involves a comprehensive list of work tasks that individuals are required to perform on the job.

The portion of a job analysis that focuses on the KSAs that workers must possess to be effective is often referred to as a worker-oriented or KSA-based job analysis. Typically, a job analyst first identifies the tasks that workers are required to perform on the job and

Selection Assessment Methods � 3

Job-Oriented Job Analysis: Sample Tasks for an Investigator Job

� Provide testimony by stating facts and answering questions.

� Gather and review pertinent information to obtain evidence or develop background information on subjects.

� Integrate diverse information to uncover relationships between individuals, events or evidence.

� Work in a team environment as a team member or leader.

� Calm and reassure victims or distressed others in tense situations.

� Perform a variety of public service functions to enhance the image of the organization.

3 Gael, S. (Ed.). (1988). The job analysis handbook for business, industry, and government. (Vols. 1 and 2). New York: Wiley.

4 Brannick, M. T., & Levine, E. L. (2002). Job analysis. Thousand Oaks, CA: Sage.

then identifies the KSAs that are needed to effectively perform those tasks. For exam- ple, the first task above is “Provide testimony by stating facts and answering ques- tions.” KSAs that would be required to perform this task include (1) the ability to speak clearly, self-confidently and concisely using voice inflection, gestures and eye contact for emphasis; (2) the ability to maintain a professional demeanor and appear- ance at all times; and (3) the ability to remain calm and levelheaded under stress.

While an in-depth discussion of job analysis procedures is beyond the scope of this report, the major steps involved in performing a job analysis for the purpose of devel- oping or selecting assessment methods are shown below.

4 � Selection Assessment Methods

Person-Oriented Job Analysis: Sample KSAs for an Investigator Job

� Ability to speak clearly, self-confidently and concisely using voice inflection, gestures and eye contact for emphasis.

� Ability to think critically, questioning assumptions and identifying merits and deficiencies in logic.

� Ability to gain cooperation from other individuals or organizations.

� Ability to maintain a professional demeanor and appearance at all times.

� Ability to remain calm and levelheaded under stress.

� Knowledge of investigative techniques and procedures.

STEP 1 Observe or interview job experts to develop a list of tasks performed on the job.

STEP 5 Select or develop assessments that measure the most critical tasks or KSAs

that a worker must possess upon entry to the job.

STEP 4 Analyze the survey data to prioritize the most critical tasks and KSAs for the job.

STEP 3 Survey a sufficiently large and representative sample of job incumbents or

their supervisors, asking them to rate which job tasks and KSAs are most critical for effective job performance.

STEP 2 Observe or interview job experts to develop a list of the KSAs workers

must possess to perform job tasks effectively.

Job analysis information is used as a basis for developing assessments. Specifically, assessments are developed to measure the most critical tasks or KSAs resulting from the job analysis for a given job. Some assessments involve work samples that simulate job tasks and require candidates to demonstrate that they can perform these tasks effective- ly. Job-oriented or task-based job analysis data are used as a basis for developing these types of assessments because they focus directly on assessing how well job candidates can perform critical work tasks.

Other assessment methods focus on measuring KSAs that are required to perform job tasks effectively, such as various mental abilities, physical abilities or personality traits, depending on the job’s requirements. If one were selecting a manager, for example, it would be important to assess whether candidates could solve complex business prob- lems, be decisive and communicate effectively. Alternatively, if one were selecting an administrative assistant, KSAs such as the ability to perform work conscientiously and the ability to perform work with speed and accuracy would be much more important for identifying capable candidates. Worker-oriented or KSA-based job analysis data are used as a basis for developing assessment methods that focus on a job candidate’s underlying abilities to perform important work tasks.

Assessment Methods

This section of the paper describes the various assessment methods that can be used by organizations. Figure 1 shows which assessment methods are predominantly task-based and which are predominantly KSA-based. The methods discussed here can be used for internal or external selection. Internal selection refers to situations where an organiza- tion is hiring or promoting from within, whereas external selection refers to situations where an organization is hiring from the outside. While some assessment methods are used more commonly for external selection (e.g., cognitive ability tests, personality tests, integrity tests), there are numerous examples of organizations that have used one or more of the following tools for internal selection, external selection or both.

Selection Assessment Methods � 5

Cognitive Ability Tests. These assessments measure a variety of mental abilities, such as verbal and mathematical ability, reasoning ability and reading comprehension. Cognitive ability tests have been shown to be extremely useful predictors of job per- formance and thus are used frequently in making selection decisions for many different types of jobs.5 6 7 Cognitive ability tests typically consist of multiple-choice items that are administered via a paper-and-pencil instrument or computer.

Some cognitive ability tests contain test items that tap the various abilities (e.g., verbal ability, numerical ability, etc.) but then sum up the correct answers to all of the items to obtain a single total score. That total score then represents a measure of general mental ability. If a separate score is computed for each of the specific types of abilities, then the resulting scores represent measures of the specific mental abilities.

6 � Selection Assessment Methods

5 Hunter, J. (1986). Cognitive ability, cognitive aptitudes, job knowledge, and job performance. Journal of Vocational Behavior, 29, 340-362.

6 Ree, M. J., Earles, J. A., & Teachout, M. S. (1994). Predicting job performance: Not much more than g. Journal of Applied Psychology, 79, 518-524.

7 Gottredson, L. S. (Ed.). (1982). The g factor in employment. Journal of Vocational Behavior, 29(3).

KSA-Based Assessments • Cognitive ability tests • Job knowledge tests • Personality rests • Biographical data • Integrity tests • Structured interviews • Physical fitness tests

Job Analysis

Task-Based Assessments • Situation judgment test • Work sample tests • Assessment centers • Physical ability tests

Figure 1

Job Knowledge Tests. These assessments measure critical knowledge areas that are needed to perform a job effectively.8 Typically, the knowledge areas measured represent technical knowledge. Job …

HRMN 400 – Week 2 Citations

(Heathfield, How to Do a Job Analysis, 2020)

(National Conference of State Legislatures, 2008)

(Legal Information Institute, n.d.)

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How to Do a Job Analysis Why Might Employers Want to Do a Job Analysis?

H U M A N R E S O U R C E S G L O S S A RY

• • •

B Y Updated April 07, 2020S U S A N M . H E AT H F I E L D

A job analysis is a process used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job. You need as much data as possible to put together a job description, which is the frequent output result of the job analysis.

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The job analysis pares the responsibilities of a job down to the core functions necessary to successfully perform the job. The job analysis is useful in providing an overview of the fundamental requirements of any position.

If you miss critical information, you could end up paying an employee incorrectly, and thus foster employee discontent and unhappiness. Or you could inadvertently hire an employee who lacks an essential skill needed for performing the job.

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Additional outcomes of a job analysis include:

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making employee recruiting and hiring plans,

position postings and advertisements, and

performance development planning within your performance management system.

The job analysis is a handy tool that you can use to populate any of these processes for employment success.

How to Perform a Job Analysis Certain activities will help you create a successful job analysis. The job analysis may include the following activities:

1. Reviewing the job responsibilities of current employees. It is critical that you ask the actual employees who are doing the job what they do every day on the job. Frequently, HR and management (especially senior management) have no idea what encompasses the day to day functions of any particular job. They may see the output but they have no idea what work actions and behaviors go into the employee producing it.

If you're asked to list your current responsibilities for job analysis, be thorough with the information you provide. Don't just say you “produce monthly reports.” Say, that you “gather the data from six different departments, check the data for accuracy using a custom-designed Access tool that I created and maintain, and etc, etc, etc.” If you leave off the details, they may think that your report is generated by a button that you push once a month to produce.

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Make certain that you have described your daily duties in sufficient detail so that your organization is able to hire a qualified new employee who has the capacity to do the job correctly.

2. Doing internet research and viewing sample job descriptions online or offline highlighting similar jobs. While you never want to copy another company's job description, looking at several is helpful in writing your own job descriptions.

You can find sample job descriptions by searching for “[Job Title] Sample Description” or you can look at job postings for positions companies are currently hiring. You can also look at LinkedIn to see how people describe their accomplishments in a job.

You can also see the job descriptions that are listed on such sites as Salary.com or Payscale.com. All of this searching can help you figure out how to word the job analysis and help remind you of the tasks and responsibilities that you may have forgotten.

3. Analyzing the work duties, tasks, and responsibilities that the employee filling the position needs to accomplish. Not every job within a company is optimized. You may find duties that are undone or important projects that you should move from one department to another. You may discover tasks that another job would more successfully and easily accomplish.

4. Researching and sharing with other companies that have similar jobs. Sometimes companies will happily share information about their job descriptions. There are also salary survey companies, where you can match up your jobs to their descriptions and share salary information. But, they can also help you figure out what to include in your own job descriptions.

5. Articulate the most important outcomes or contributions needed from the position.

When you're doing a job analysis, make sure you look at the needs of the company and at any unassigned or illogical responsibility. Then, work with management to add the proper tasks to the proper job analysis.

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Sometimes you get so caught up in the tasks that you forgot to look at the needed outcomes. For instance, if it's the report that is needed, all the gathering and auditing of data is worthless without the final analysis and report.

Sometimes, you can identify holes in your organization and figure out a way to fill them by doing job analyses. Tasks are not assigned to any employee that needs to be done, for example. Or, one job has more tasks than any one person could accomplish.

The more information you can gather, the easier you will find the actual writing of the job description. You don't need to worry about pretty language. You want a functional job description more than anything else. Make sure it is clear and concise. Ask yourself, “If somebody else read this, would they know what the person in this position actually does?”

The Bottom Line Don't put off writing job descriptions. You will find them invaluable when you look at salary and compensation when hiring and promoting, and when evaluating whether or not a job meets the qualifications for exemption from overtime. They are an effective communication tool to use with employees so your expectations are clear.

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4/15/2008 At-Will Employment - Overview Please note NCSL cannot provide advice or assistance to private citizens or businesses regarding employment-related matters. Please consult your state department of labor or a private attorney.

I. The At-Will Presumption

Employment relationships are presumed to be “at-will” in all U.S. states except Montana. The U.S. is one of a handful of countries where employment is predominantly at-will. Most countries throughout the world allow employers to dismiss employees only for cause. Some reasons given for our retention of the at-will presumption include respect for freedom of contract, employer deference, and the belief that both employers and employees favor an at-will employment relationship over job security.

A. At-Will Defined

At-will means that an employer can terminate an employee at any time for any reason, except an illegal one, or for no reason without incurring legal liability. Likewise, an employee is free to leave a job at any time for any or no reason with no adverse legal consequences.

At-will also means that an employer can change the terms of the employment relationship with no notice and no consequences. For example, an employer can alter wages, terminate benefits, or reduce paid time off. In its unadulterated form, the U.S. at-will rule leaves employees vulnerable to arbitrary and sudden dismissal, a limited or on-call work schedule depending on the employer’s needs, and unannounced cuts in pay and benefits.

B. Modification by Contract

The at-will presumption is a default rule that can be modified by contract. For example, a contract may provide for a specific term of employment or allow termination for cause only. Typically, U.S. companies negotiate individual employment agreements only with high-level employees. Collective bargaining agreements usually provide that represented employees may only be terminated for cause.

Cause generally includes reasons such as poor employee performance, employee misconduct, or economic necessity. An employment contract may specifically outline the situations or employee actions that would lead to termination for cause.

II. Common Law Exceptions to the At-Will Presumption

Over the years, courts have carved out exceptions to the at-will presumption to mitigate its sometimes harsh consequences. The three major common law exceptions are public policy, implied contract, and implied covenant of good faith.

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The at-will presumption is strong, however, and it can be difficult for an employee to prove that his circumstances fall within one of the exceptions. Further, not all of the exceptions are recognized by all jurisdictions.

A. Public Policy

The most widely recognized common law exception to the at-will presumption protects employees against adverse employment actions that violate a public interest. This common law exception is similar to, and may overlap with, the retaliation exception described below. Some courts have refused to recognize a separate public policy tort where a statutory remedy is available.

States that recognize the public policy exception vary significantly in how broadly or narrowly it is construed. The majority of states accept only public policy expressed in state constitutions and statutes. A minority also allow additional sources that may include administrative rules and regulations, professional codes of ethics, and broader notions of public good and civic duty.

The American Law Institute’s proposed Restatement (Third) of Employment Law identifies four categories within the public policy exception:

Category Example(s)

1) Refusing to perform an act that state law prohibits.

Refusing an employer’s request to commit perjury at a trial.

2) Reporting a violation of the law. Reporting an employer’s fraudulent accounting practices or use of child labor.

3) Engaging in acts that are in the public interest. Joining the National Guard or performing jury duty.

4) Exercising a statutory right. Filing a claim under the state workers’ compensation law.

B. Implied Contract

Implied contracts of employment are recognized in 41 states and the District of Columbia, but even where recognized may be difficult for a plaintiff to prove. An implied contract may be created in several different ways. Oral assurances by a supervisor or employer representative (e.g., “We need good people around here, you’ve got a job for life!” or “We don’t dismiss employees without giving them a chance to correct their behavior.”) may give rise to an implied contract. Likewise, the employer’s handbooks, policies, practices or other written assurances may create an implied contract.

Thus, even though there is no express written contract between the employer and an individual employee, that employee may have an expectation of fixed term or even indefinite employment based on a supervisor’s statement, an employer’s practice of only firing employees for cause, or an assertion in the employee

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handbook that specific termination procedures will be followed. The list of examples above is not exhaustive.

As a general rule, courts disregard language promising long-term, lifetime, or permanent employment as aspirational and consider the relationship to be at-will. Employers can further protect themselves by using a clear and unambiguous disclaimer on written materials stating that its policies and procedures do not create contractual rights. Employers can also reserve the right to modify policies and procedures at any time.

In states with a statute of frauds, the requirement that contracts of over a year be in writing creates an additional hurdle to employee claims involving oral assurances.

C. Implied Covenant of Good Faith and Fair Dealing

A minority of states recognize an implied covenant of good faith and fair dealing in employment relationships. Judicial interpretations of this covenant have varied from requiring just cause for termination to prohibiting terminations made in bad faith or motivated by malice.

Examples of bad faith terminations include an employer firing an older employee to avoid paying retirement benefits or terminating a salesman just before a large commission on a completed sale is payable. There have been relatively few cases in which employers were found liable under an implied covenant of good faith and fair dealing theory.

D. Additional Tort-Based Claims Limiting At-Will Employment

At-will employees may also bring claims against their employers for the following torts:

Intentional interference with a contract. This claim may be made in the employment context when a supervisor or co-worker with an improper motive successfully induces the employee’s dismissal. This tort is not recognized in all jurisdictions.

Intentional infliction of emotional distress. The Restatement (Second) of Torts defines this tort as extreme and outrageous conduct that intentionally or recklessly causes severe emotional distress. In many courts, even serious emotional and psychological abuse may not be outrageous enough to establish liability.

E. Promissory Estoppel

An employer could be estopped from firing an employer, or required to pay damages, if the employee can show the following:

The employer made a clear and unambiguous promise of employment;

The employee relied on this promise;

The employee's reliance was reasonable and foreseeable; and

The employee was injured as a result.

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Imagine an individual who receives and accepts a job offer, quits his current employment, and then relocates his family to the city where the new job is located. Before his first day with the new employer, he is terminated. An individual in this situation may have a promissory estoppel claim.

It is difficult for a plaintiff to prove all of the promissory estoppel elements, especially in an employment context. Some courts reject outright promissory estoppel claims made by an at-will employee by contending that an employee cannot reasonably rely on a promise of employment if the employment is at-will.

In any case, promissory estoppel provides only a limited remedy in comparison to a breach of contract claim. This is because damages are calculated based on the individual’s previous employment, and not on the promised employment.

III. Statutory Exceptions to the At-Will Presumption

In addition to the common-law exceptions outlined above, there are also several statutory exception to the at- will employment doctrine.

A. Illegal Discrimination

Federal and state discrimination statutes prohibit employers from basing employment decisions on an employee’s race, color, religion, sex, national origin, age, disability, or veteran status. Specific state statutes may also protect employees from discrimination based on other factors, such as sexual orientation.

It is important to recognize that discrimination statutes shield members of protected classes only from adverse employment actions made because of their membership in a protected class. In other words, an employer may fire Jane because she failed to perform the required functions of her job, but not because she is in a wheelchair.

1. Protections for an Employee’s Off-Duty Activities

A few states have enacted legislation to protect employees from adverse employment actions resulting from legal off-duty activities. In Colorado, CRS § 24-34-402.5 was originally known as the Smoker’s Rights Act, but actually protects any legal off-duty activities conducted away from the employer’s premises. North Dakota adopted a similarly broad statute. Legislation enacted by Indiana, New Jersey, Oregon, and South Dakota specifically prohibits employer discrimination against smokers.

There are limits even to Colorado’s expansive act. The legislation allows employers to constrain the lawful, off-duty activities of their employees when 1) the restriction relates to bona fide occupational activity; 2) is reasonably and rationally related to the employment activities and responsibilities; or 3) is necessary to avoid an actual conflict of interest or the appearance of one.

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B. Retaliation

Retaliation is another statute-based exception to the at-will presumption. Federal and/or state laws prohibit employers from firing employees in retaliation for engaging in legally proper, necessary, or desirable activities. Example of protected activities include claiming minimum wage or overtime compensation, engaging in union activities, opposing unlawful discriminatory practices, filing for workers' compensation, and "whistleblowing."

1. Whistleblowing

While most states provide whistleblower protection for public sector employees, protection for private sector employees is more limited. Approximately seventeen states have enacted whistleblower statutes that protect private sector employees from adverse employment actions if they report an employer’s wrongdoing. Please see our compilation of state whistleblower statutes for citations and summaries.

Where there is no general state statute, private employees are left with a patchwork of federal and state statutes that address a wide variety of issues including workplace health and safety, environmental protection, accounting fraud, and discrimination, that also include whistleblower protections. The challenge for employees in these jurisdictions is to find a statute that applies to their particular circumstances.

IV. Montana’s Good Cause Rule

The Montana Wrongful Discharge From Employment Act of 1987 (WDEA) created a cause of action for employees who believe that they were terminated without good cause. Although similar legislation has been introduced elsewhere, Montana is so far the only state to have passed a law with such far-reaching effects.

A. Statutory Provisions

The statute prohibits discharge for other than good cause after a designated probationary period and gives the employee the right to challenge a termination in court or before an arbitrator. The statute also limits damages to up to four years of lost wages, including the value of fringe benefits, with interest. See Mont. Code Ann. §§ 39-2-901 through 39-2-915.

B. Legislative History

Beginning in 1982, the Montana Supreme Court made a series of pro-plaintiff decisions that expanded the good faith and fair dealing exception to the at-will employment rule. These decision created uncertainty for employers, and led them to advocate for a more consistent regime. In essence, Montana employers were willing to trade certainty and limitations on damages for constraints on their ability to fire employees at-will.

V. Conclusion

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Although both common-law and statutory exceptions to the at-will rule exist, the presumption remains an important feature of the U.S. employment landscape. While an employee may be able to make a variety of claims, they can be hard to prove. In addition, not all claims are recognized in all jurisdictions and judicial interpretations of common law protections may be broadly or narrowly construed. Thus far, Montana is the only state to have completely eliminated the at-will rule.

Additional Resources

Timothy P. Glynn, Rachel S. Arnow-Richman, and Charles A. Sullivan, Employment Law: Private Ordering and Its Limitations (New York: Aspen Publishers, 2007).

Charles J. Muhl, “The Employment-At-Will Doctrine: Three Major Exceptions,” Monthly Labor Review(January 2001): 3-11.

Wayne N. Outten, “When Good Deeds Are Punished: The Legal Landscape of Retaliation and Whistleblowing,” Litigation and Administrative Practice Course Handbook Series, PLI Order No. 11091 (New York: Practising Law Institute, October 2007).

Glenn R. Solomon, “The Montana Wrongful Discharge From Employment Act, Twenty Years Later ,” Glenn Solomon Blog, 2007, http://www.glennsolomonblog.com/Post.shtml.

Katherine V.W. Stone, “Revisiting the At-Will Employment Doctrine: Imposed Terms, Implied Terms, and the Normative World of the Workplace,” Industrial Law …

Week 1 Citations

(Andersen, 2013)

(Mohd, 2011)

(Miller, 2016)

(Miller S. , 2014)

(Savage, 2012)

(Younger, Younger, & Thompson, 2011)

(Begga & Srivastava, 2014)

(Heathfield, 2019)

(Module 13: Strategic Human Resource Management)

(Watkins, 2013)

(Ulrich, 2010)

(Heathfield, Build a Strategic Framework Through Strategic Planning, 2019)

(Heathfield S. M., 2019)

Bibliography Andersen, E. (2013, September 6). 4 Ways To Become A Strategic Business Partner (And Why You Should

Want To). Retrieved January 10, 2021, from Forbes: https://www.forbes.com/sites/erikaandersen/2013/09/06/4-ways-to-become-a-strategic- business-partner-and-why-you-should-want-to/?sh=677ce7633570

Begga, T., & Srivastava, S. (2014, June 3). SHRM: alignment of HR function with business strategy. Strategic HR Revieq, 13(4). doi:https://doi.org/10.1108/SHR-03-2014-0023

Heathfield, S. M. (2019, July 28). 10 Ways an HR Manager Can Influence Business Strategy. Retrieved January 10, 2021, from Balance Careers: https://www.thebalancecareers.com/business- strategy-tips-for-hr-manager-1916828

Heathfield, S. M. (2019, June 25). Build a Strategic Framework Through Strategic Planning. Retrieved January 10, 2021, from Balance Careers: https://www.thebalancecareers.com/build-a-strategic- framework-through-strategic-planning-1916834

Heathfield, S. M. (2019, February 18). Develop a Successful Human Resources Department Business Plan. Retrieved January 10, 2021, from Balance Careers: https://www.thebalancecareers.com/develop-a-human-resources-department-business-plan- 1918400

Miller, A. (2016, July 12). Yes, HR Professionals, You Are Consultants. Retrieved January 10, 2021, from SHRM: https://www.shrm.org/resourcesandtools/hr-topics/behavioral- competencies/consultation/pages/yes-hr-professionals-you-are-consultants.aspx

Miller, S. (2014, June 22). Make HR a True Business Partner. Retrieved January 10, 2021, from SHRM: https://www.shrm.org/resourcesandtools/hr-topics/behavioral-competencies/leadership-and- navigation/pages/hr-business-partners.aspx

Module 13: Strategic Human Resource Management. (n.d.). In Principles of Management. Lumen. Retrieved January 10, 2021, from https://courses.lumenlearning.com/principlesmanagement/chapter/16-2-the-changing-role-of- strategic-human-resource-management-in-principles-of-management/

Mohd, Z. (2011, October 19). The Changing Role & Functions of HR. Retrieved January 10, 2021, from https://www.slideshare.net/zulmohd1/changing-role-of-hr-v30

Savage, D. A. (2012). Human Resources Transformation: The Internal Consulting Role. In W. Rothwell (Ed.), The Encyclopedia of Human Resource Management: Thematic Essays (pp. 287-297). San Francisco, California: John Wiley & Sons, Inc. Retrieved January 10, 2020, from https://www.academia.edu/7683077/Human_Resource_Transformation_The_Internal_Consulti ng_Role_Human_Resource_Transformation_The_Internal_Consulting_Role

Ulrich, D. (2010). Are We There Yet? What's Next for HR. Retrieved January 10, 2021, from Michigan Ross School for Business: https://michiganross.umich.edu/sites/default/files/uploads/RTIA/pdfs/dulrich_wp_arewetherey et.pdf

Watkins, G. (2013, April 26). A GUIDE TO STRATEGIC HUMAN RESOURCE PLANNING. Retrieved January 10, 2021, from Workinfo: http://www.workinfo.org/index.php/articles/item/699-a-guide-to- strategic-human-resource-planning

Younger, J., Younger, A., & Thompson, N. (2011). HR: building a reputation as a business partner. Retrieved January 10, 2021, from Emerald Publishing: https://www.emeraldgrouppublishing.com/archived/learning/management_thinking/articles/hr _partner.htm

1/7/2021 4 Ways To Become A Strategic Business Partner (And Why You Should Want To)

https://www.forbes.com/sites/erikaandersen/2013/09/06/4-ways-to-become-a-strategic-business-partner-and-why-you-should-want-to/?sh=4739d71a3… 1/4

Careers

4 Ways To Become A Strategic

Business Partner (And Why You

Should Want To)

Sep 6, 2013, 11:56am EDT

Erika Andersen Contributor

I hang out with a lot of HR folks. Given that much of what we do at Proteus

is in support of employees’ professional development – executive coaching,

management skills training, team development – we very often work closely

with the HR teams in our client companies.

Over the past ten years or so, I’ve noticed that ‘being a strategic partner’ has

become a kind of mantra for HR people everywhere. Generally, they seem

to mean, “we’d like to be included the conversations where the future of the

business gets determined, and have a real voice in those conversations.”

Lately, I’ve observed that the IT folks, the finance people, and the

communications groups are saying the same thing. And I suspect that

younger people in any function who want to advance in their careers are

thinking or saying some version of it, too. It’s a very legitimate and human

thing, to want to be taken seriously and valued for one’s contributions at the

highest level. And for folks in the ‘shared services’ realm – all the functions

that support the whole organization – it also makes sense from an

organizational perspective: having HR, finance, legal, IT, etc. weigh in on

big decisions earlier in the process helps to make sure that all critical factors

are taken into account.

1/7/2021 4 Ways To Become A Strategic Business Partner (And Why You Should Want To)

https://www.forbes.com/sites/erikaandersen/2013/09/06/4-ways-to-become-a-strategic-business-partner-and-why-you-should-want-to/?sh=4739d71a3… 2/4

So, how do you get invited into those organization-critical conversations?

And – perhaps even more important – what does it take to become an actual

participant in them; for the most influential people in your company to see

you as a valuable addition?

Let me start by saying there’s one sure way not to do it: force yourself

in. I’ve seen people try that in all kinds of ways: get the CEO or some other

senior person to mandate their inclusion; wangle it into the company policy;

change reporting structures; use various threats and/or forms of coercion.

This never works long-term. Never. People will simply have meetings and

“forget” to invite you, or pointedly ignore you at the meetings you do attend.

The best way I know of to be treated like a strategic business partner is to

think and act like one. Which means:

Really understand the business. Know what makes your company tick

and what gets in the way of its ticking. Get clear about how all the different

parts operate together, and – again – what gets in the way of their smooth

operation. Become knowledgeable about the competition, and understand

how your company is better and worse than they are. Be able to articulate

your understanding.

Get out of your box. If you look at what the company needs only from the

perspective of your own function (HR, IT, marketing – whatever it is), you

will be seen as tactical at best, and an impediment to the business’ success at

worst. Step back and think about what would best serve the business overall.

Speak from that vantage point. Hold yourself accountable to represent the

company’s interests (especially when they conflict with yours) and you’ll be

seen as a real asset to any organizational-level discussion.

Be useful in a big way. Talk is cheap. If you want to be seen as valuable,

actually help the line business people in your organization meet their goals.

Either do things in your own area that make it easier for them to do their

jobs, or share ideas (based in your real understanding of the business) about

1/7/2021 4 Ways To Become A Strategic Business Partner (And Why You Should Want To)

https://www.forbes.com/sites/erikaandersen/2013/09/06/4-ways-to-become-a-strategic-business-partner-and-why-you-should-want-to/?sh=4739d71a3… 3/4

how they can achieve goals more easily or quickly. If good things happen for

the business as a result of you being involved in projects, you’ll be invited

back.

Listen. The best way to do all three of the things I’ve noted above is to start

by really, truly listening. Get deeply curious. Summarize to make sure

you’ve understood. When you get new information, listen very carefully to

hear how it relates to what you already know and what it says about the

person who’s speaking. People love to be deeply listened to – they see

excellent listeners as wise, insightful and interesting. (Yes, you read that

right – people see those who listen to them as being more interesting

people. I think it’s because someone who’s interested in us is interesting to

us!)

Finally, remember that reputation and influence are built over time. If you

start behaving in these ways, you’ll begin to be seen as a great person to have

around. The more you fulfill that positive expectation, the more it will be

reinforced. And soon you’ll be someone they check with to make sure you’re

available before they schedule that important meeting…

(An earlier version of this post appeared here on 3/21/2011)

_______________

Check out Erika Andersen’s latest book, Leading So People Will

Follow, and discover how to be a followable leader. Booklist called it “a

book to read more than once and to consult many times.”

Want to know what Erika and her colleagues at Proteus do? Find out here.

Join our conversation about leadership on LinkedIn.

Erika Andersen

1/7/2021 4 Ways To Become A Strategic Business Partner (And Why You Should Want To)

https://www.forbes.com/sites/erikaandersen/2013/09/06/4-ways-to-become-a-strategic-business-partner-and-why-you-should-want-to/?sh=4739d71a3… 4/4

I'm the founding partner of Proteus, keynote speaker, business thinker and author of

Growing Great Employees, Being Strategic, Leading So People Will Follow and Be Bad…

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Zu lkifli M o h d

19 October 2011

The C hanging Role The C hanging Role & F unc tions of & F unc tions of HRHR

• H R as th e e m p lo ye e ad vo cate • H R as th e co n s u ltative b u s in e s s p artn e r

• H R as th e age n t o f C h an ge

HR Republic S ummit 2011: Trends & C hallenges UnfoldHR Republic S ummit 2011: Trends & C hallenges Unfold

CONTENTSCONTENTS

• The E volution of HR The E volution of HR

• The C hanging Role of HRThe C hanging Role of HR

• HR as S trategic PartnerHR as S trategic Partner

• HR as C hange A gentHR as C hange A gent

• HR as E mployee A dvoc ateHR as E mployee A dvoc ate

The E volution of The E volution of HRHR

• P ro te ctio n fo r fe m ale e m p lo ye e s & ch ild re n

• C are fo r in ju re d & s ick e m p lo ye e s

• C re ate d in re s p o n d to h ars h n e s s in

in d u s trial co n d itio n s

• Ad m in is tratio n o f ab s e n ce , train in g &

re cru itm e n t

• S tate / T rad e U n io n p artn e rs h ip s

• H an d le d q u e rie s o n co m p e n s atio n

m atte rs

• E m p lo ye e d ata

• We lfare & e m p lo ym e n t m gt

we re in te grate d → P e rs o n n e l M gt

• O u tp u t co u ld b e in flu e n ce d b y

e m p lo ym e n t p o licie s

• S tru ctu re d co m p e n s atio n p o licy

• C o lle ctive b argain in g & IR

• S p e cializ e d fu n ctio n s (70’s )

• Ad m in is trato r & te ch n ical e xp e rt

• F o cu s e d o n im p ro vin g e fficie n cy

& e ffe ctive n e s s

• C o m p e n s atio n e n gin e e rin g as ke y to

p ro d u ctivity (in ce n tive

p lan s , d e fe rre d

co m p , o p tio n s )

• S trate gic B u s in e s s P artn e r

• C h an ge Age n t • E m p lo ye e C h am p io n • C O E • S h are s e rvice

End of 18th Century: Welfare Officers

The World Wars:

Labour/ Employment

Manager

2001 till now: Strategic HR

1945 – 1979: Personnel Mgt

1980 – 2000: Human

Resource / Compliance Officer

Origins of HR A B rief His tory of HR

1890 - 1913 1914- 1939 1945 - 1979 1980- 1990 2000 till now

Welfare Officer

Labor Manager

Personnel Management

Human Resource

Management

Strategic HR

2nd Industrial R evolution World Wars G lobalization

• Ad m in is trative fo cu s

• C o m p lian ce • T rad itio n al m in d

s e t

• Lim ite d s co p e o f activity

• S p e cializ e d fu n ctio n s

• Ad m in is trative fo cu s with

e n large d s co p e o f

activitie s

• S u p p o rt fu n ctio n • Le s s re active &

m o re p ro active

• B u s in e s s P artn e r • F o cu s o n valu e -

ad d e d activitie s

• P ro active • M u ltid is cip lin ary • M u lti-face te d ro le s

The E volution of HR The HR J ourney

V a lu

e

I m

p a c t/

C o

n tr

ib u

ti o

n t

o t

h e B

u s in

e s s

→

High

V a lu

e

I m

p a c t/

C o

n tr

ib u

ti o

n t

o t

h e B

u s in

e s s

→

Compensation Benefits

Safety & Workers’

Compensation

Compliance

Labor/Union Relations

Staffing

Training & Development

Employee Relations

Survey Action Planning

continue to evolve

S o u rce : R ich Vo s b u rgh

Welfare / Employee

Care

Employee Welfare

Labor Relations

Employee Relations

Personnel Admin

Human Resource

Organizational Effectiveness

High

Transactional Work Transformational

Work

The E volution of HR The HR J ourney: Nature of Work

Strategic HR Planning

Organizational Design

HR as Business Partner

Culture & Image

Performance Management

HRIS

COE

Shared Svc

Centre

The C hanging Role of The C hanging Role of HRHR

HR is s hifting from foc us ing on the organization of the bus ines s to foc us ing on

the bus ines s of the organization

The C hanging Role of HR

HR is more important than ever, people are the only s us tainable s ourc e of c ompetitive advantage.

Wats o n Wyatt S tu d y

“ You c an take my fac tories , burn up my buildings , but give me my people, and I’ll bring my bus ines s right bac k again.”

- H e n ry F o rd -

The C hanging Role of HR

E mployers want HR to addres s s trategic is s ues involving the c ompetitivenes s and performanc e of the firm… More than the role of protec tor and adminis trator.

What C E Os Really Want from HR Reality C hec k

Requires HR toRequires HR to c hange:c hange:

The bus ines sThe bus ines s environment:environment:

Requires c ompaniesRequires c ompanies to foc us on:to foc us on:

GlobalizationGlobalization Economic Economic uncertaintiesuncertainties Technology Technology innovationsinnovations Profitability thru Cost Profitability thru Cost & Growth& Growth Intensified Intensified CompetitionCompetition

• Increasing value • Organizational

capabilities → fast, responsive, cost effective

• Creating climate for action

• Unique competitive advantage

Business savvy Align with strategy Strong bench strength Change catalyst Help biz leaders to achieve objectives

What C E Os Really Want from HR Reality C hec k

A s urvey of 500 HR direc tors ac ros s E urope, the Middle E as t and A s ia, found out that only 15% of the ac tivities c arried out by HR departments are related to " pure s trategic interventions " .

Wats o n Wyatt S tu d y

The C hanging Role of HR Reality C hec k

StrategicStrategic 15%15%

StrategicStrategic 60%60%

Trans ac tional/ Operational

85% Trans ac tional/ Operational

40%

HR needs to realign its service delivery model to add HR needs to realign its service delivery model to add more strategic value to the organizationmore strategic value to the organization

The C hanging Role of HR The S hift in the B alanc e of HR Roles

% of available res ources

Need to expand focus beyond its traditional & transactional role.

F our Roles for HR • A dminis trative E xpert • E mployee C hampion • C hange A gent • S trategic Partner

The Role of HR Ulric h’s F our-Role Model

Dave Ulrich identifies four distinct roles of HR professional that may add value to a business and create sustainable

competitive advantage.

S trategic Partner

A ligning HR & B us ines s S trategy Active Role in setting strategic direction

F u tu re /S trate gic F o cu sF u tu re /S trate gic F o cu s

D ay-T o -D ay/O p e ratio n al F o cu sD ay-T o -D ay/O p e ratio n al F o cu s

C hange A gent

Managing Trans formation & C hange

Effecting Transformation & Change

A dminis trative E xpert

Managing The F irm’s HR Infras truc ture

Process Optimization & Efficiency

E mployee C hampion

Managing E mployees ’ C ontribution

Motivated & Competent Personnel

P E O P L E

P R O C E S S E S

The Roles of HR Ulric h’s F our-Role Model

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

S trategic Partner • Develops & aligns strategies with biz • Assists line managers in solving organization,

people & change-related issues • Contributes to management team’s strategic

decision-making • Fosters systems thinking, customer focus • Strategically manages workforce development

C hange A gent • Understands the organization’s culture & what

is effective and ineffective • Institutionalizes change capability within the

organization • Assists line managers to lead & facilitate change • Acts as a consultant in organizational

effectiveness • Enhances management development

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

A dminis trative E xpert • Creates and delivers effective & efficient HR

processes and services tailored to unique business needs

• Manages people & HR related costs • Ensures internal &external customer focus • Applies information technology to rapidly

deliver quality HR products and services

E mployee C hampion • Develops strategies and helps implement

actions that enhance human capital contribution

• Helps build workforce commitment • Ensures fair, ethical, and equitable people

processes and practices • VOE

F u tu re /S trate gic F o cu sF u tu re /S trate gic F o cu s

D ay-T o -D ay/O p e ratio n al F o cu sD ay-T o -D ay/O p e ratio n al F o cu s

P E O P L E

P R O C E S S E S

The Roles of HR Ulric h’s F our-Role Model

S trategic Partner • Develops & aligns strategies with biz • Assists line managers in solving organization,

people & change-related issues • Contributes to management team’s strategic

decision-making • Fosters systems thinking, customer focus • Strategically manages workforce development

C hange A gent • Understands the organization’s culture & what

is effective and ineffective • Institutionalizes change capability within the

organization • Assists line managers to lead & facilitate change • Acts as a consultant in organizational

effectiveness • Enhances management development

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

A dminis trative E xpert • Creates and delivers effective & efficient HR

processes and services tailored to unique business needs

• Manages people & HR related costs • Ensures internal &external customer focus • Applies information technology to rapidly

deliver quality HR products and services

E mployee C hampion • Develops strategies and helps implement

actions that enhance human capital contribution

• Helps build workforce commitment • Ensures fair, ethical, and equitable people

processes and practices

F u tu re /S trate gic F o cu sF u tu re /S trate gic F o cu s

D ay-T o -D ay/O p e ratio n al F o cu sD ay-T o -D ay/O p e ratio n al F o cu s

P E O P L E

P R O C E S S E S

The Roles of HR Ulric h’s F our-Role Model

when NOT done well… c reate a lot of when NOT done well… c reate a lot of is s uesis s ues

S trategic Partner • Develops & aligns strategies with biz • Assists line managers in solving organization,

people & change-related issues • Contributes to management team’s strategic

decision-making • Fosters systems thinking, customer focus • Strategically manages workforce development

C hange A gent • Understands the organization’s culture & what

is effective and ineffective • Institutionalizes change capability within the

organization • Assists line managers to lead & facilitate change • Acts as a consultant in organizational

effectiveness • Enhances management development

David Ulrich — HR Champions: The Next Agenda for Adding Value & Delivering Results, 1996

A dminis trative E xpert • Creates and delivers effective & efficient HR

processes and services tailored to unique business needs

• Manages people & HR related costs • Ensures internal &external customer focus • Applies information technology to rapidly

deliver quality HR products and services

E mployee C hampion • Develops strategies and helps implement

actions that enhance human capital contribution

• Helps build workforce commitment • Ensures fair, ethical, and equitable people

processes and practices

F u tu re /S trate gic F o cu sF u tu re /S trate gic F o cu s

D ay-T o -D ay/O p e ratio n al F o cu sD ay-T o -D ay/O p e ratio n al F o cu s

P E O P L E

P R O C E S S E S

The Roles of HR Ulric h’s F our-Role Model

when done well give the organization when done well give the organization a great s trategic advantagea great s trategic advantage

HRHR as S trategic Partneras S trategic Partner

• Participates in designing & defining organization’s strategies

• Contributes to management team’s strategic decision-making

• Focuses on aligning HR strategies & practices with business strategy → translate business strategy into HR priorities

• Strategically manage people & infrastructure to support the execution of strategies & the creation of value

 Strategically manages workforce development

HR as S trategic Partner

Deliverable/outc ome: S trategy exec utionDeliverable/outc ome: S trategy exec ution

S trate gic P artn e r

C o re C o m p e te n cie s

HR as S trategic Partner C ore C ompetenc ies

Facilitate strategy development for business teams by using different techniques

Plan and facilitate strategy deployment to the whole organization

Align the organization strategy with the business strategy to ensure it will be delivered

Redesign the organization to support strategy

HR as Strategic Partner should be able to:HR as Strategic Partner should be able to:

B us ines s Mas tery

Pers onal C redibility

HR Mas tery

Knowledge Requirements

HR as S trategic Partner B ec oming A S trategic B us ines s Partner

Bring strong technical expertise to the table and an understanding of your company and its strategy.

Develop new skills as needed. Understand the data, the financials, the market, etc.

B ec oming A S trategic B us ines s Partner

Staying focused on issues that matter to the

business

Delivering capabilities that make a real

difference

What are the issues that matter?

What’s keeping business leaders up at night?

What’s the “elephant on the table” regarding the future?

What drives the bottom line?

Focus on business objectives

Focus on environment

Provide organizational capabilities as required by the strategy

People Goal alignment Culture

Knowledge Requirements

Bring strong technical expertise to the table and an understanding of your company and its strategy.

Develop new skills as needed. Understand the data, the financials, the market, etc.

Staying focused on issues that matter to the

business

What are the issues that matter?

What’s keeping business leaders up at night?

What’s the “elephant on the table” regarding the future?

What drives the bottom line?

Focus on business objectives

Focus on environment

Delivering capabilities that make a real

difference

Staying focused on issues that matter to the

business

What are the issues that matter?

What’s keeping business leaders up at night?

What’s the “elephant on the table” regarding the future?

What drives the bottom line?

Focus on business objectives

Focus on environment

Provide organizational capabilities as required by the business objectives:

People Strategy Culture

Delivering capabilities that make a real

difference

Staying focused on issues that matter to the

business

What are the issues that matter? What’s keeping business leaders up at night? What’s the “elephant on the table” regarding the future? What drives the bottom line? Focus on business objectives Focus on environment

B ec oming a bus ines s partner s ounds eas y B ec oming a bus ines s partner s ounds eas y but in prac tic e demands a s hift in minds et but in prac tic e demands a s hift in minds et

and c apabilityand c apability

HR as S trategic Partner B ec oming A S trategic B us ines s Partner

• Becoming a true "player" on strategic business issues → able to challenge business leaders on their own ground

• Architect who can synthesize best practices e.g. Total Reward, Talent Management, OD, etc into integrated solutions and implement at speed

• Shifting from advising and consulting to challenging, provoking, confronting business leaders

• Letting go of the past and engaging with the future

HR as S trategic Partner Minds et S hift

You are involved in dis c us s ions ( by invitation!) on the " people implic ations " of a c hange or a new initiative in the organization before things go wrong

L ine Managers in c onfide in you about their c onc erns and problems , even when you are not providing a s olution then and there

Managers enc ourage you to tac kle is s ues in their areas and expres s c onfidenc e in your ability to do things you may never have done before

You engage in genuine dialogue with line managers

The time frame of your work moves from pres ent/pas t to future - es pec ially longer term future

The " why” of what you is doing is very c lear - in terms of organizational need ( not " bec aus e we always do it/ have done it)

HR as S trategic Partner You are moving towards S trategic Partnering When…

HRHR as C hange A gent

A s ignific ant number of any organization's bus ines s s trategies A s ignific ant number of any organization's bus ines s s trategies requires major c hanges in people-related is s ues ; the HR requires major c hanges in people-related is s ues ; the HR func tion and individual HR profes s ionals develop and manage func tion and individual HR profes s ionals develop and manage the key " people" s ys tems needed to s upport organizational the key " people" s ys tems needed to s upport organizational c hange. c hange.

HR as C hange A gentHR as C hange A gent

S imple — though not eas y

HR as HR as C hange A gent A gent A S trategic Role

Provoke the pos itive c hanges  in the organization s o it c an s tay c ompetitive.

B uild the organization’s c apac ity to embrac e and c apitalize on c hange.

HR as C hange

A gent

C hampion/ C hampion/ S pons or/ S pons or/ C atalys tC atalys t

F ac ilitatorF ac ilitator Des ignerDes igner

Demons trator

Deliverable/outc ome: C reating a renewed organizationDeliverable/outc ome: C reating a renewed organization

Model the c hange

C ommunic ate about the c hange

E ngage others to partic ipate

Help others to break from the pas t

C reate a s upporting …

HRMN 400 – Week 7 Citations

(Heathfield, 2020)

(Muskovitz, 2019)

(Progressive Discipline and Termination Processes)

(Doyle, 2020)

(Heathfield, Progressive Discipline in the Workplace, 2020)

(Heathfield, Use Disciplinary Actions Effectively and Legally, 2019)

(Petersen, 2019)

(Hamel, n.d.)

(Starkman, 2018)

(Boundless)

(Rice University)

(Heathfield, Workplace Conflict Resolution, 2019)

(Heathfield, What Notice Must an Employer Provide for Job Termination or Layoff, 2020)

(Heathfield, Requirements of the WARN Act, 2020)

(Managing Employment Relationships)

(Workplace Health and Safety Issues)

(Picincu, 2019)

(Lucas, 2019)

(Heathfield, How to Write Employee Performance Letters of Reprimand, 2021)

(Heathfield, Documentation in Human Resources, 2020)

(Lucas, How to Use Empathy to Improve Your Workplace, 2020)

(Heathfield, How to Build Trust at Work, 2020)

(Cross, 2018)

(Lucas, Is Favoritism in the Workplace Illegal, 2020)

(Heathfield, Want to Know What Goes Into an Employee Handbook Table of Contents?, 2020)

(EEOC, n.d.)

(EEOC, n.d.)

(EEOC, n.d.)

(Heathfield, Tips for Compassionate Employee Layoffs, 2020)

(Lucas, Is a Poisonous Attitude a Reason to Fire an Employee?, 2020)

(Lucas, When Employers Should Hire an Employment Law Attorney, 2019)

(Heathfield, Avoid Wrongful Termination of Employment, 2019)

(Heathfield, Surfing the Web at Work, 2019)

(Heathfield, Developing a Drug-Free Workplace, 2018)

(Heathfield, What Is Harassment?, 2020)

Bibliography Boundless. (n.d.). Managing Conflict. In Boundless Management. Lumen Learning. Retrieved

February 21, 2021, from https://courses.lumenlearning.com/boundless- management/chapter/managing-conflict/

Cross, M. (2018, January 30). A New Year’s Approach to Performance and Conduct in the Workplace. Retrieved February 21, 2021, from Association for Talent Development: https://www.td.org/insights/a-new-years-approach-to-performance-and-conduct-in-the- workplace

Doyle, A. (2020, September 17). What Is Wrongful Termination? Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/what-is-wrongful- termination-2061658

EEOC. (n.d.). 6. I need to lay off employees. Retrieved February 21, 2021, from U.S. Equal Employment Opportunity Commission: https://www.eeoc.gov/employers/small- business/6-i-need-lay-employees

EEOC. (n.d.). Avoiding Discrimination in Layoffs or Reductions in Force (RIF). Retrieved February 21, 2021, from U.S. Equal Employment Opportunity Commission: https://www.eeoc.gov/employers/small-business/avoiding-discrimination-layoffs-or- reductions-force-rif

EEOC. (n.d.). Discrimination by Type. Retrieved February 21, 2021, from U.S. Equal Employment Opportunity Commission: https://www.eeoc.gov/discrimination-type

Hamel, G. (n.d.). Definition of Workplace Privacy. Retrieved February 21, 2021, from Chron: https://smallbusiness.chron.com/definition-workplace-privacy-15419.html

Heathfield, S. M. (2018, May 29). Developing a Drug-Free Workplace. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/developing-a-drug-free- workplace-1918311

Heathfield, S. M. (2019, March 15). Avoid Wrongful Termination of Employment. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/wrongful- termination-of-employment-is-illegal-1918637

Heathfield, S. M. (2019, November 25). Surfing the Web at Work. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/surfing-the-web-at-work- 1919261

Heathfield, S. M. (2019, August 17). Use Disciplinary Actions Effectively and Legally. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/use- disciplinary-actions-effectively-and-legally-1917913

Heathfield, S. M. (2019, August 1). Workplace Conflict Resolution. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/workplace-conflict- resolution-1918675

Heathfield, S. M. (2020, July 31). Documentation in Human Resources. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/documentation- 1918096

Heathfield, S. M. (2020, June 22). How to Build Trust at Work. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/top-ways-to-build-trust-at- work-1919402

Heathfield, S. M. (2020, August 02). Progressive Discipline in the Workplace. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/what- progressive-discipline-1918092

Heathfield, S. M. (2020, April 17). Requirements of the WARN Act. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/warn-act-layoff-requirements- 1918297

Heathfield, S. M. (2020, January 7). Tips for Compassionate Employee Layoffs. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/tips-for- compassionate-layoffs-1918586

Heathfield, S. M. (2020, April 6). Want to Know What Goes Into an Employee Handbook Table of Contents? Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/need-to-know-what-goes-in-an-employee-handbook- 1918308

Heathfield, S. M. (2020, April 30). What Are the Key Causes of Employment Termination? Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/what-causes-employment-termination-1918275

Heathfield, S. M. (2020, July 25). What Is Harassment? Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/what-is-harassment-1917918

Heathfield, S. M. (2020, April 7). What Notice Must an Employer Provide for Job Termination or Layoff. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/notice-of-layoff-or-termination-1917605

Heathfield, S. M. (2021, January 30). How to Write Employee Performance Letters of Reprimand. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/letters-of-reprimand-1917914

Lucas, S. (2019, September 6). 6 Tips For Handling Employee Complaints. Retrieved from Balance Careers: https://www.thebalancecareers.com/best-handle-employee-complaints- 1917594

Lucas, S. (2019, October 4). When Employers Should Hire an Employment Law Attorney. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/when-employers-hire-an-employment-law-attorney- 4153517

Lucas, S. (2020, November 2). How to Use Empathy to Improve Your Workplace. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/using- empathy-to-improve-your-workplace-4157504

Lucas, S. (2020, May 19). Is a Poisonous Attitude a Reason to Fire an Employee? Retrieved from Balance Careers: https://www.thebalancecareers.com/is-a-poisonous-attitude- reason-to-fire-an-employee-1918718

Lucas, S. (2020, May 19). Is Favoritism in the Workplace Illegal. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/is-displaying-favoritism-in- the-workplace-illegal-4159736

Managing Employment Relationships. (n.d.). Retrieved February 21, 2021, from University of Maryland Global Campus: https://learn.umgc.edu/d2l/le/content/543604/viewContent/20431472/View

Muskovitz, M. (2019, September 24). How To Avoid Legal Problems With Employment Terminations. Retrieved February 21, 2021, from Balance Careers: https://www.thebalancecareers.com/employment-terminations-how-to-avoid-legal- problems-1918635

Petersen, L. (2019, April 29). The Impact of Inappropriate Conduct in the Workplace. Retrieved February 21, 2021, from Chron: https://smallbusiness.chron.com/deal-subordinates- refuse-respect-69938.html

Picincu, A. (2019, March 16). Examples of Employee Relations Issues. Retrieved February 21, 2021, from Chron: https://smallbusiness.chron.com/examples-employee-relations-issues- 11538.html

Progressive Discipline and Termination Processes. (n.d.). In B. C. Committee, Human Resources in the Food Service and Hospitality Industry. BC Campus. Retrieved February 21, 2021,

from https://opentextbc.ca/humanresourcesinfoodservices/chapter/progressive-discipline- and-termination-processes/

Rice University. (n.d.). Managing Grievances and Conflicts. In Introduction to Business. BC Campus. Retrieved February 21, 2021, from https://opentextbc.ca/businessopenstax/chapter/managing-grievances-and-conflicts/

Starkman, J. (2018, March 20). Protecting employee privacy is a delicate balancing act. Retrieved February 21, 2021, from The Business Journal: https://www.bizjournals.com/bizjournals/how-to/human-resources/2018/03/protecting- employee-privacy-is-a-delicate.html

Workplace Health and Safety Issues. (n.d.). Retrieved February 21, 2021, from University of Maryland Global Campus: https://learn.umgc.edu/d2l/le/content/543604/viewContent/20431473/View

What Are the Key Causes of Employment Termination? Voluntary, Involuntary and Mutually Agreed Are Employment Termination Options

• • • Table of Contents

• Involved in a Voluntary Termination?

• In an Involuntary Termination?

• Factors in Employment Termination

• Mutual Termination BY SUSAN M. HEATHFIELD

Updated April 30, 2020

Are you interested in the ins and outs of employment termination? Employees land in hot water for many reasons, some inexplicable to employers — some predictable. Some are a result of employees' inappropriate expectations.

But, termination is a serious employment action that when initiated by the employer is generally the culmination of a series of progressive disciplinary actions. The employer has generally signaled loud and clear that the employee is in danger of employment termination.

Termination occurs when an employer or an employee end an employee's employment with a particular employer. Termination can be voluntary or involuntary depending on the circumstances. When termination is initiated by the employer, it is usually involuntary although, under some circumstances, the employee and the employer may mutually agree to end their employment relationship.

What's Involved in a Voluntary Termination?

In a voluntary termination, an employee resigns from his or her job. Resignations occur for a variety of reasons that may include: a new job, a spouse or partner's acceptance of a new job in a distant location, returning to school, an opportunity to take on a managerial role, and retirement.

Voluntary termination can also occur for less positive reasons. The employee doesn't get along with her boss. She sees no opportunity to continue growth and progress in her current company. The job responsibilities in her current job changed and now, she is no longer doing something that she loves every day. She has to work every day with a coworker who bullies her in subtle ways that are not outwardly noticeable.

And, sometimes, it's the appeal of the shiny new job as in the grass is greener, or she just wants to do something new. It's hard to evaluate the motivations of employees who lave their jobs.

With valued employees, employers expend efforts on employee retention in their aim to limit preventable turnover. This is a significant objective of employers as the cost of employee turnover is expensive and ever rising.

What Happens in an Involuntary Termination?

In an involuntary termination, an employer fires the employee or removes the employee from his or her job. An involuntary termination is usually the result of an employer's dissatisfaction with an employee's performance or an economic downturn. Involuntary termination can also occur in the form of a layoff if the business is unprofitable or overstaffed.

Reasons for involuntary termination of an employee range from poor performance to attendance problems to violent behavior. Occasionally, an employee is a poor fit for the job's responsibilities or fails to mesh with the company's culture.

Involuntary termination, such as a layoff, can occur because an employer lacks the financial resources to continue an employment relationship. Other events that can trigger an involuntary termination may include mergers and acquisitions, a company relocation, and job redundancy.

With performance problems, the employer most often has tried less final solutions such as coaching from the employee's supervisor to help the employee improve. Escalating progressive discipline in the case of performance issues such as absenteeism is also the norm. In a final effort to help an employee improve his or her performance, many employers rely on a Performance Improvement Plan (PIP).

Used appropriately, the PIP is the employer’s last-ditch attempt to communicate the needed performance improvements to the employee. But the PIP, and any escalating disciplinary measures, also provide documentation that demonstrates that the employer made an effort to salvage the employment relationship.

Additional Factors in Employment Termination

Several additional factors are relevant to involuntary employment termination.

Employment at Will: In states that recognize employment at will, an employee may be fired for any reason, at any time, with or without cause. Employers do not even have to give a reason for why the employee is terminated from his or her job.

To defend against potential charges of discrimination, however, employers are advised to keep documentation even if no case is presented at the termination meeting. Increasingly, employment law courts are finding results for the employee if no paper trail exists to support the employment termination.

Employment at will also means that the employee can terminate his or her employment at any time for any reason without cause.

Termination for Cause: In other instances of employment termination, the employment is terminated for a reason which is given to the employee and stated in the termination letter. Termination for cause can occur in such situations as:

• Violation of the company code of conduct or ethics policy, • Failure to follow company policy, • Violence or threatened violence, • Extreme insubordination to a manager or supervisor, • Harassment of other employees or customers, or • Watching pornography online.

Mutual Termination

Occasionally, an employer and employee recognize that they are not a good fit for whatever reason. They mutually agree to part ways in a manner that makes neither party culpable for the termination. This approach to termination is called agreeing on an exit strategy. No pain. The unwanted employee, the unwanted job: gone.

How To Avoid Legal Problems With Employment Terminations You Can Legally Fire an Employee if You Take Care to Avoid Discrimination BY MEL MUSKOVITZ Updated September 24, 2019

The decision to terminate an individual’s employment carries with it the risk of a possible legal challenge. Much of the risk involved is dependant on the employer’s policies and if the employee has an employment contract. An employee may, for example, have a breach of contract or wrongful discharge claim.

An at-will employer—that is, an employer who reserves the right to terminate employees without cause—generally does not need to worry about such claims. Like all other employers, however, an at-will employer still must be concerned about many other possible claims. Having documentation of employee performance and of the reasons for the termination is important.

Possible Claims of Discrimination

All employers need to be cognizant of possible discrimination claims that can arise from employment termination. To prevail, the former employee would have to prove that they were terminated, at least in part, because of their protected status. Protected status can include different treatment based on gender, religion, race, national origin, age, disability, and other biased behaviors. The Equal Employment Opportunity Commission enforces many laws against inequality in the workplace. Some of these laws include:

• The Civil Rights Act of 1964 • Age Discrimination Act of 1967

• Title I Americans with Disabilities Act of 1990 • The Pregnancy Discrimination Act

Termination and Defamation Claims

In addition to discrimination, discharged employees could claim that their former employer defamed them. A claim could involve that the employer made false, disparaging comments about them to coworkers or other parties or treated them in a manner intended to cause emotional distress. The employee may claim the employer invaded their privacy if they improperly disclose the reason for involuntary termination.

In some cases, the employer may be charged with retaliation against a whistle-blower. They may claim they were terminated in retaliation for exercising a legal right, such as reporting discriminatory or other unlawful employment practices or for taking leave under the Family and Medical Leave Act or the Military Leave Act

At-Will Employment

Most states are considered at-will employment states. This means the employee or the employer may terminate their work relationship at any time without the need to provide prior notice or without the need for just cause. Even though at-will employers may terminate employees for any reason—or for no reason at all—terminations are easier to defend when they are justified by a legitimate business reason. Legitimate business reasons could include problems with the employee's contribution, misconduct, a reorganization resulting in the elimination of the employee’s position, or financial considerations of the employer.

Regardless of the nature of the employment relationship, an employer should consider establishing work rules that list conduct that could result in discipline or termination. These policies are best communicated in an employee manual. Also, the employee should sign a receipt acknowledging they received a copy of such policies. Keep this acknowledging

Your att-will employer policy should include a couple of disclaimers. First, make clear that the existence of company rules does not nullify or in any way change an employee’s or the employer's at-will status. Secondly, include a statement that the reasons listed for termination are not an all-inclusive list. Finally include that the employer retains the right to terminate employees who, in the employer’s discretion, have either engaged in misconduct or who have not performed at an acceptable level.

If your workplace employs a progressive discipline policy, the employer should retain the flexibility to discharge employees immediately when circumstances warrant.

Questions Employers Need to Ask

Before deciding to terminate an employee, the employer should ask themselves the following questions:

• Does the employee have a legitimate explanation for their actions or poor performance? Before deciding whether to terminate an employee, conduct a thorough investigation of the events in question and get the employee’s version or explanation. Consider whether a neutral third person would find the employee’s explanation plausible.

• Does the punishment “fit the crime”? Consider whether a neutral third party would agree that termination was fair given the nature of the conduct or the seriousness of the performance problems.

• Is the decision to terminate inconsistent with previous actions of the company? For example, has the employee recently received a favorable performance review, promotion or pay increase? If yes, this would make it more difficult for an employer to justify terminating an employee for performance- related reasons if you were involved in a legal proceeding.

• Is the decision to terminate the employee premature? Determine whether alternatives to termination are more appropriate, such as giving an employee the last chance, using progressive discipline to get their attention, or placing the employee on a performance improvement plan.

• Does the employee have any pre-termination rights? Ensure that any pre- termination procedures provided for by the company are followed (Note: special procedures may exist for public sector employees who have certain due process rights not accorded to private sector employees).

• Has the company administered discipline in a consistent manner? Ensure that members of any protected classification are treated the same as employees outside of the protected classification who engaged in similar conduct, under similar circumstances (severity of the conduct, prior offenses, the length of employment, and so forth).

Following an Employment Termination

Following an employment termination, an employer can reduce the likelihood of a court challenge in a number of ways. They should ensure that appropriate post-termination procedures are followed. Public sector employees may be entitled to a post-termination hearing. Private sector employees would also be entitled to a hearing if provided for in the company rules, the employee handbook, or in an employment agreement or contract.

Inform the Employee

Be candid with the employee. Be candid when advising the employee of the reason for termination. Don’t sugarcoat the reason in order to avoid hurting the employee’s feelings. If an employee later sues, these statements will adversely affect the employer’s defense.

Respect the Employee

Respect the employee’s feelings. Do not do anything to embarrass the employee during the termination process. When possible, avoid escorting the employee from the workplace in front of coworkers. Employees who have been humiliated are more likely to challenge their termination.

Respect the employee’s privacy. After termination, advise only those employees and managers who have a need to know the reason for the termination, and advise them not to discuss the matter with anyone.

Other Employer Safeguards

If any severance benefits are provided such as severance pay, payment of medical insurance premiums, or outplacement counseling, in addition to those owed an employee under company policy, consider making the benefits conditioned on the employee signing a release of claims. For a release to be effective against federal age discrimination claims (employees 40 or older), the release must contain several specific provisions, including a 21-day consideration period and a 7-day revocation period.

Do not make post-termination statements in a termination notice, reference letter or response to the state unemployment compensation office that are inconsistent with or contradict the reason for termination. Such written statements, like comments to the former employee, will create credibility problems for the employer.

An employer should secure the employee’s personnel file and retain all documents, including the employee’s poor work product, which supports the decision to terminate the worker.

Consider providing outplacement services and, in certain cases, a neutral reference to aid the employee in finding another job. The sooner an employee is reemployed, the less likely the employee is to bring an action against his or her former employer.

16Progressive Discipline and Termination Processes According to Indiana University Organizational Development “Progressive discipline is the process of using increasingly severe steps or measures when an employee fails to correct a problem after being given a reasonable opportunity to do so. The underlying principle of sound progressive discipline is to use the least severe action that you believe is necessary to correct the undesirable situation” (Indiana University Human Resources, n.d.).

There are usually two reasons for disciplining employees: performance problems and misconduct.

Misconduct is generally the more serious problem as it is often deliberate, exhibited by acts of defiance. In contrast, poor performance is more often the result of lack of training, skills, or motivation. Performance problems can often be solved through coaching and performance management, while misconduct normally calls for progressive discipline. Sometimes extreme cases of misconduct are grounds for immediate termination.

Managers often cite the following behaviour when identifying what they perceive to be poor worker performance or misconduct:

• Lack of skills or knowledge • Lack of motivation • Poor attitude • Lack of effort or misconduct (working at a reduced speed, poor quality, tardiness, sleeping on the

job, wasting time) • Poor co-worker relations (arguing on the job, lack of cooperation) • Poor subordinate-supervisor relations (insubordination, lack of follow-through) • Inappropriate supervisor-subordinate relations (favouritism, withholding of key information,

mistreatment, abuse of power) • Mishandling company property (misuse of tools, neglect) • Harassment or workplace violence (verbal or physical abuse, threats, bullying) • Dishonesty • Disregard for safety practices (not wearing safety equipment, horseplay, carrying weapons on the

job, working under the influence of alcohol or drugs)

The steps of progressive discipline

Company policies on discipline should strive for fairness by adhering to these criteria:

• Develop clear, fair rules and consequences. • Clearly communicate policies. • Conduct a fair investigation. • Balance consistency with flexibility. • Use corrective action, not punishment.

When an employee must be disciplined, typically these steps are followed:

1. Verbal counselling 2. Written warning 3. Suspension without pay 4. Termination

After each step before termination, the employee should be given an opportunity to correct the problem or behaviour. If he or she fails to do so, the final step is taken: termination.

Step 1: Verbal counselling

Verbal counselling is usually …

HRMN 400 – Week 6 Citations

(Heathfield, 2019)

(Bacal, n.d.)

(Heathfield, 4 Common Problems With Performance Appraisals, 2020)

(Williams)

(Heathfield, The Advantages and Disadvantages of Merit Pay, 2020)

(Petersen, 2019)

(HR Basics: Performance & Rewards, 2011)

(How to do Effective Performance Appraisals, 2008)

(Heathfield, Performance Management Process Checklist, 2019)

(Heathfield, Why Employee Performance Appraisal Does Not Work, 2019)

(Module 13: Designing a High-Performance Work System, 2012)

(Appraising Employee Performance)

Bibliography Appraising Employee Performance. (n.d.). Retrieved February 15, 2021, from University of

Maryland Global Campus: https://learn.umgc.edu/d2l/le/content/543604/viewContent/20431470/View

Bacal, R. (n.d.). Performance Enhancement. Retrieved February 14, 2021, from A Performance Management Bias And Error Glossary: http://performance- appraisals.org/Bacalsappraisalarticles/articles/bias.htm

Heathfield, S. M. (2019, November 25). Performance Management Process Checklist. Retrieved February 15, 2021, from Balance Careers: https://www.thebalancecareers.com/performance-management-process-checklist- 1918852

Heathfield, S. M. (2019, November 17). The 5 Goals of Employee Performance Evaluation. Retrieved February 14, 2021, from Balance Careers: https://www.thebalancecareers.com/employee-performance-evaluation-goals-1918866

Heathfield, S. M. (2019, October 19). Why Employee Performance Appraisal Does Not Work. Retrieved February 15, 2021, from Balance Careers: https://www.thebalancecareers.com/performance-appraisals-dont-work-1918846

Heathfield, S. M. (2020, May 8). 4 Common Problems With Performance Appraisals. Retrieved February 14, 2021, from Balance Careers: https://www.thebalancecareers.com/performance-appraisal-problems-1918857

Heathfield, S. M. (2020, April 30). The Advantages and Disadvantages of Merit Pay. Retrieved February 15, 2021, from Balance Careers: https://www.thebalancecareers.com/the- advantages-and-disadvantages-of-merit-pay-1919083

How to do Effective Performance Appraisals (2008). [Motion Picture]. YouTube. Retrieved February 14, 2021, from https://www.youtube.com/watch?v=E34Zt1cEpFA&feature=youtu.be

HR Basics: Performance & Rewards (2011). [Motion Picture]. YouTube. Retrieved February 14, 2021, from https://www.youtube.com/watch?v=ALZVggBDODY&feature=youtu.be

Module 13: Designing a High-Performance Work System. (2012). In Principles of Management. Lumen Learning. Retrieved February 15, 2021, from https://courses.lumenlearning.com/principlesmanagement/chapter/16-6-designing-a-high- performance-work-system/

Petersen, L. (2019, March 5). Advantages & Disadvantages of Pay-for-Performance Policies. Retrieved February 15, 2021, from Chron: https://smallbusiness.chron.com/advantages- disadvantages-payforperformance-policies-44264.html

Williams, L. (n.d.). Module 15: Performance Appraisals. In Introduction to Business. Lumen Learning. Retrieved February 15, 2021, from https://courses.lumenlearning.com/wmintrobusiness/chapter/reading-performance- appraisals/

The 5 Goals of Employee Performance Evaluation • • • BY SUSAN M. HEATHFIELD Updated November 17, 2019

Are you interested in why organizations do employee performance evaluations? It's both an evaluative process and a communication tool. Done traditionally, employee performance evaluation is universally disliked by supervisors, managers, and employees.

The managers hate employee reviews because they don't like to sit in judgment about an employee's work. They know that if the performance evaluation is less than stellar, they risk alienating the employee. At the same time, employees hate performance evaluations because they dislike being judged. They tend to take suggestions for performance improvement personally and negatively.

Performance management, on the other hand, provides the advantages organizations seek in doing performance evaluation. But, performance management, participated effectively and with the appropriate mindset, accomplishes the same goals, and more. Performance management also supplies additional advantages to both the manager and the employee.

The question on the table now is why organizations would want to ask employees to participate in either employee performance evaluation or a performance management system. Good reasons exist for advocating the basic concept of performance evaluation. There are few fans of the traditional process.

Where Employee Performance Evaluation Fits

In some form, most organizations have an overall plan for business success. The employee performance evaluation process, including goal setting, performance measurement, regular performance feedback, self-evaluation, employee recognition, and documentation of employee progress, ensures this success.

The process, done with care and understanding, helps employees see how their jobs and expected contributions fit within the bigger picture of their organization.

The more effective evaluation processes accomplish these goals and have additional benefits. Documented performance evaluations are communication tools that ensure the supervisor and their reporting staff members are clear about the requirements of each employee’s job.

The evaluation also communicates the desired outcomes or outputs needed for each employee’s job and defines how they will be measured.

Goals of Employee Performance Evaluation

These are the five goals of an effective employee evaluation process.

1. The employee and the supervisor are clear about the employee’s goals, required outcomes or outputs, and how the success of the contributions will be assessed. Your goal in employee evaluation is to motivate a high level of quality and quantity in the work that the employee produces.

2. The goals of the best employee performance evaluations also include employee development and organizational improvement. The employee performance evaluation helps employees accomplish both personal development and organizational goals. The act of writing down the goals takes the employee one step closer to accomplishing them.

Since goals, deliverables, and measurements are negotiated in an effective employee performance evaluation, the employee and the supervisor are committed to achieving

them. The written personal development goals are a commitment from the organization to assist the employee to grow in their career.

3. Employee performance evaluation provides legal, ethical, and visible evidence that employees were actively involved in understanding the requirements of their jobs and their performance. The accompanying goal setting, performance feedback, and documentation ensure that employees understand their required outputs. The goal of employee performance evaluation is to create accurate appraisal documentation to protect both the employee and the employer.

In the event that an employee is not succeeding or improving their job performance, the performance evaluation documentation can be used to develop a Performance Improvement Plan (PIP).

This plan provides more detailed goals with more frequent feedback to an employee who is struggling to perform. The goal of a PIP is the improvement of the employee's performance, but non-performance can lead to disciplinary action up to and including employment termination.

4. In many organizations, numeric rankings are used to compare an employee’s performance with the performance of other employees. Numeric ratings are frequent components of these systems, too.

No matter how fair and non-discriminatory these ratings are made to appear through the endless establishment of criteria for rating, and they boil down to the manager’s opinion of an employee’s performance. This is why numeric components in an employee performance evaluation process are not recommended.

5. The employee performance evaluation provides evidence of non-discriminatory promotion, pay, and recognition processes. This is an important consideration in training managers to perform consistent, regular, non-discriminatory employee performance evaluations. You want to ensure equitable measurement of an employee's contribution to the accomplishment of work,

The documentation of success and failure to achieve goals is a critical component of the employee performance evaluation process.

While employee performance evaluation systems take many forms from organization to organization, these are the components that organizations are most likely to include. Some are more effective than others.

But the goals for the employee performance evaluation system, or the appraisal process, or the performance management process are similar. The differences appear in the approach and the details. And, that can make all of the difference in how the performance evaluation system is perceived by and carried out by employees.

2/11/2021 A Performance Management Bias And Error Glossary

performance-appraisals.org/Bacalsappraisalarticles/articles/bias.htm 1/1

A Performance Management Bias And Error Glossary by Robert Bacal

Robert Bacal is a noted author, keynote speaker, and management consultant. His most recent books include Performance Management - A Briefcase Book, and The Complete Idiot's Guide To Dealing With Difficult Employees. The Work911 Supersite contains many more free articles and tips on a number of workplace topics. Access it at work911.com .

Performance appraisals are always sticky for everyone. While managers make an effort to be as objective as possible, there are always concerns about specific performance appraisals, and their accuracy. If you are going to evaluate your staff, then it is wise to be aware of factors that may affect your assessments. In this short article we outline a few factors you should be aware of, so that you can examine your own assessment processes to ensure that they are as free from bias as possible.

Halo Effect

The halo effect is the tendency to rate someone high or low in all categories because he or she is high or low in one or two areas. Results in appraisals that do not help develop employees, because they are two general or inaccurate as to specifics. Evaluating someone lower is sometimes also called the "devil effect".

Standards of Evaluation

If you are using categories such as fair, good, excellent, etc, be aware that the meanings of these words will differ from person to person. In any event, the use of these categories is not recommended because they do not provide sufficient information to help employees develop.

Central Tendency

The habit of assessing almost everyone as average. A person applying this bias will tend not to rate anyone very high or very low.

Recency Bias

Tendency to assess people based on most recent behaviour and ignoring behaviour that is "older".

Leniency Bias

Tendency to rate higher than is warranted, usually accompanied by some rationalization as to why this is appropriate.

Opportunity Bias

Ignoring the notion that opportunity (factors beyond the control of the employee) may either restrict or facilitate performance, and assigning credit or blame to the employee when the true cause of the performance was opportunity.

False Attribution Errors

We have a tendency to attribute success or failure to individual effort and ability (at least in North America). So when someone does well, we give them credit, and when someone does less well, we suggest it's somehow their fault. While there is some truth in this, the reality is that performance is a function of both the individual and the system he or she works in. Often we misattribute success and failure and assume they are both under the complete control of the employee. If we do, we will never improve performance.

4 Common Problems With Performance Appraisals Where Do Managers Go Wrong With Performance Appraisal? • • • Table of Contents

• Performance Appraisals Are Annual • Performance Appraisal As a Lecture • Appraisals and Employee Development • Performance Appraisals and Pay

BY SUSAN M. HEATHFIELD Updated May 08, 2020

Managers go wrong with performance appraisals in so many ways, that it’s difficult to identify all of them. Some of the problems have to do with the overall system of performance appraisal, and other problems are the result of the one-on-one meeting that is held for the appraisal interaction.

The systemic problems are rarely under the control of one manager. They are created by the people who have developed the performance appraisal system that the managers are asked to use, usually the senior leadership team and Human Resources staff.

Here are four of the big problems managers and employees experience with performance appraisals. If you are clear on the problems, you have an opportunity to fix the problems.

Performance Appraisals Are Annual

Start with the fact that performance appraisals are usually annual. Employees need feedback and goal planning much more frequently than annually. Managers may need to participate in the annual performance appraisal plan, but they have the power to provide regular feedback in addition to the annual performance appraisal.

Employees need weekly, even daily, performance feedback. This feedback keeps them focused on their most important goals. It also provides them with developmental coaching to help them increase their ability to contribute. The feedback also recognizes them for their contributions.

Employees need and respond best to clear expectations from their manager. Feedback and goal-setting annually just doesn't cut it in the modern work environment. In this environment, goals are constantly changing. Work is under constant evaluation for relevance, importance, and contribution.

Customer needs change with such frequency that only the nimble respond in a timely manner. It is what performance feedback needs to do—respond nimbly and with serious responsiveness in a timely manner.

Performance Appraisal As a Lecture

Managers, who don't know any better, make performance appraisals into a one-way lecture about how the employee did well this year and how the employee can improve. In one example from a small manufacturing company, employees reported to HR that they thought that the performance development planning meeting was supposed to be a conversation.

Their manager was using 55 of the 60 minutes to lecture his reporting staff members about their performance—both good and bad. The employees' feedback was relegated to less than five minutes. This is not the point of a performance appraisal discussion—a two-way discussion is critical so employees feel heard out and listened to.

Additionally, once a manager tells an employee about problems with their work or a failure in their performance, employees tend not to hear anything else the manager has to say that is positive about their performance.

So, the feedback sandwich in which managers praise an employee, then give the employee negative feedback that is followed, once again, by positive feedback is an ineffective approach to providing needed feedback.

So, it’s a combination problem. The best performance appraisals are a two-way discussion and focus on the employee assessing his or her own performance and setting his or her own goals for improvement.

Performance Appraisal and Employee Development

Performance appraisals rarely focus on developing an employee’s skills and abilities. They do not provide commitments of time and resources from the organization about how they will encourage employees to develop their skills in areas of interest to the employee.

The purpose of performance evaluation is to provide developmental feedback that will help the employee continue to grow in their skills and ability to contribute to the organization. It is the manager's opportunity to hold a clear exchange about what the organization expects and most wants and needs from the employee. What a lost opportunity if a manager uses the meeting in any other way.

Performance Appraisals and Pay

In a fourth way that performance appraisals often go astray, employers connect performance appraisals with the amount of pay raise an employee will receive. When the appraisal becomes a deciding factor in decisions about employee raises, it loses its ability to help employees learn and grow.

You will train employees to hide and cover-up problems. They will set their manager up to be blindsided by problems or an issue in the future. They will bring only positives to the appraisal meeting if they are a normal employee.

Don’t ever expect an honest discussion about improving an employee's performance if the outcome of the discussion will affect the employee’s income. Doesn't this make perfect sense? You know it does, so why go there? It should be one component of your salary setting system.

Let your employees know that you will base raises on a wide range of factors—and tell them what the factors are in your company annually. Employees have short memories, and you need to remind them every year about how you will make your decisions about merit increases.

If your company has a company-wide approach—and many companies do these days—even better. You will have support and backup as all employees will receive the same message. Your job will be to reinforce the message during the performance appraisal meeting.

Connecting the appraisal to an employee's opportunity for a salary increase negates the most important component of the process—the goal of helping the employee grow and develop as a result of the feedback and discussion at the performance appraisal meeting.

The Bottom Line

If you can influence these four big problems in performance appraisal, you will go a long way toward having a useful, developmental system in which the employee's voice plays a prominent role. It is the right way to approach performance appraisal.

Reading: Performance Appraisals

The Purpose of Performance Appraisals

A performance appraisal (PA) or performance evaluation is a systematic and periodic process that assesses an individual employee’s job performance and productivity, in relation to certain pre-established criteria and organizational objectives. Other aspects of individual employees are considered as well, such as organizational citizenship behavior, accomplishments, potential for future improvement, strengths, and weaknesses. A PA is typically conducted annually. However, the frequency of an evaluation, and policies concerning them, varies widely from workplace to workplace. Sometimes an evaluation will be given to a new employee when a probationary period ends, after which they may be conducted on a regular basis (such as every year). Usually, the employee’s supervisor (and frequently, a more senior manager) is responsible for evaluating the employee, and he or she does so by scheduling a private conference to discuss the evaluation. The interview functions as a way of providing feedback to employees, counseling and developing employees, and conveying and discussing compensation, job status, or disciplinary decisions.

Historically, performance appraisals have been used by companies for a range of purposes, including salary recommendations, promotion and layoff decisions, and

training recommendations.[1] In general, “performance elements tell employees what they have to do, and standards tell them how well they have to do it.”[2] This broad definition, however, can allow for appraisals to be ineffective, even detrimental, to employee performance. “Second only to firing an employee, managers cite performance appraisal as the task they dislike the most,” and employees generally have a similar feeling.[3] One key item that is often forgotten during the appraisal process (by managers and employees alike) is that the appraisal is for improvement, not blame or harsh criticism.[4]

Developing an Appropriate Appraisal Process

One significant problem in creating an appraisal process is that no single performance appraisal method will be perfect for every organization.[5] Establishing an appropriate process involves significant planning and analysis in order to provide quality feedback to the employee. The most crucial task in the process is determining proper job dimensions that can be used to evaluate the employee against accepted standards that affect the performance of the team, business unit, or company.[6] Peter Drucker developed a method termed “Management by Objectives,” or MBO, in order to address the need for specifying such job dimensions. Drucker suggests that objectives for any employee can be validated if they pass the following SMART test:[7]

• Specific • Measurable • Achievable • Realistic • Time-related

The process of an evaluation typically includes one or more of the following:

• An assessment of how well the employee is doing. Sometimes this includes a scale rating indicating strengths and weaknesses in key areas (e.g., ability to follow instructions, complete work on time, and work with others effectively). It’s also common for the supervisor and manager to discuss and determine the key areas.

• Employee goals with a deadline. Sometimes the employee may voluntarily offer a goal, while at other times it will be set by his or her boss. A significantly underperforming employee may be given a performance improvement plan, which details specific goals that must be met to keep the job.

• Feedback from coworkers and supervisors. The employee may also have the chance to share feelings, concerns, and suggestions about the workplace.

• Details about workplace standing, promotions, and pay raises. Sometimes an employee who has performed very well since the last review period may get an increase in pay or be promoted to a more prestigious position.

Methods of Performance Appraisal

Numerous methods exist for gauging an employee’s performance, and each has strengths and weaknesses depending on the environment. The following outlines some of the more commonly used methods, as well as some recently developed ones that can be useful for various feedback situations:

• Graphic rating scales: This method involves assigning some form of rating system to pertinent traits. Ratings can be numerical ranges (1–5), descriptive categories (below average, average, above average), or scales between desirable and undesirable traits (poor ↔ excellent). This method can be simple to set up and easy to follow but is often criticized for being too subjective, leaving the evaluator to define broad traits such “leadership ability” or “conformance with standards.”[8]

• Behavioral methods: A broad category encompassing several methods with similar attributes. These methods identify to what extent an employee displays certain behaviors, such as asking a customer to identify the usefulness of a sales representative’s recommendation. While extremely useful for jobs where behavior is critical to success, identifying behaviors and standards for employees can often be very time-consuming for an organization.[9]

• 2+2: A relative newcomer in performance appraisal methodology, the 2+2 feedback system demonstrates how appraisals can be used primarily for improvement purposes. By offering employees two compliments and two suggestions for improvement focused around high-priority areas, creators Douglas and Dwight Allen suggest that organizations can become “more pleasant, more dynamic, and more productive.”[10] If the goal is employee improvement, this system can provide significant benefits; however, if the goals are compensation changes and rankings, the system provides little benefit.

Appraisal methodologies depend greatly on the type of work being done; an assembly worker will require a very different appraisal system from a business consultant. Significant planning will be required to develop appropriate methods for each business unit in an organization in order to obtain maximum performance towards the appraisal goals.

1. Kulik, 2004 ↵ 2. United States Department of the Interior, 2004 ↵ 3. Heathfield, Performance Appraisals Don't Work ↵ 4. Bacal, 1999 ↵ 5. Kulik, 2004 ↵ 6. Fukami, Performance Appraisal, 2007 ↵ 7. Management by Objectives—SMART, 2007 ↵ 8. Kulik, 2004 ↵

9. Kulik, 2004 ↵ 10. Formula 2+2, 2004 ↵

LICENSES AND ATTRIBUTIONS CC LICENSED CONTENT, ORIGINAL

• Revision and adaptation. Authored by: Linda Williams and Lumen Learning. License: CC BY-SA: Attribution-ShareAlike

CC LICENSED CONTENT, SHARED PREVIOUSLY • Performance Review. Authored by: Samuel Mann. Located

at: https://www.flickr.com/photos/[email protected]/8024702520/. License: CC BY: Attribution

• Business Fundamentals. Authored by: Donald J McCubbrey. Located at: https://dl.dropboxusercontent.com/u/31779972/BusinessFundamentals.pdf. …

HRMN 400 – Week 5 Citations

(Jones, 2016)

(Performance Management vs Performance Appraisal ( Differences), 2018)

(HR Basics: Performance Management, 2017)

(Heathfield, 2020)

(Setting Employee Goals, 2014)

(Heathfield, How to Provide Feedback That Helps Employees Improve, 2019)

(Lucas, 2019)

(Leonard, 2018)

(Heathfield, Performance Development Planning (PDP), 2020)

(Ott, 2017)

(Mayhew, n.d.)

(Heathfield, Performance Improvement Strategies, 2019)

(Heathfield, How to Manage an Employee Whose Performance Is a Challenge?, 2019)

(Heathfield, Use Performance Management, 2018)

(Smith, 2018)

(Heathfield, Performance Improvement Plan, 2019)

(Jones, THE LOOK AND FEEL OF NEXT GENERATION PERFORMANCE MANAGEMENT, 2016)

(Jones, WHY NEXT GENERATION PERFORMANCE MANAGEMENT IS THE WAY OF THE FUTURE, 2016)

(Bacal, n.d.)

(Heathfield, Help Your Employees Develop Their Strengths—Not Their Weaknesses, 2019)

(Heathfield, Coaching Tips for HR Professionals, 2019)

(Heathfield, Steps to Create a Career Development Plan, 2019)

(Heathfield, How to Develop a Balanced Scorecard as a Performance Management Tool, 2019)

(Heathfield, How Great Managers Motivate Their Employees, 2020)

(Williams)

(Petty, 2019)

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Heathfield, S. M. (2019, September 5). Coaching Tips for HR Professionals. Retrieved February 4, 2021, from Balance Careers: https://www.thebalancecareers.com/tips-for-effective- coaching-1917836

Heathfield, S. M. (2019, May 14). Help Your Employees Develop Their Strengths—Not Their Weaknesses. Retrieved February 7, 2021, from Balance Careers: https://www.thebalancecareers.com/help-develop-employee-strengths-not-weaknesses- 1918672

Heathfield, S. M. (2019, June 25). How to Develop a Balanced Scorecard as a Performance Management Tool. Retrieved February 6, 2021, from Balance Careers: https://www.thebalancecareers.com/balanced-scorecards-as-performance-management- tools-4164627

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Heathfield, S. M. (2019, November 19). How to Provide Feedback That Helps Employees Improve. Retrieved February 7, 2021, from Balance Careers: https://www.thebalancecareers.com/provide-feedback-that-has-an-impact-1916642

Heathfield, S. M. (2019, November 19). Performance Improvement Plan. Retrieved February 7, 2021, from Balance Careers: https://www.thebalancecareers.com/performance- improvement-plan-contents-and-sample-form-1918850

Heathfield, S. M. (2019, May 13). Performance Improvement Strategies. Retrieved February 7, 2021, from Balance Career: https://www.thebalancecareers.com/performance- improvement-strategies-1918714

Heathfield, S. M. (2019, November 3). Steps to Create a Career Development Plan. Retrieved February 4, 2021, from Balance Careers: https://www.thebalancecareers.com/steps-to- create-a-career-development-plan-1917798

Heathfield, S. M. (2020, March 2). How Great Managers Motivate Their Employees. Retrieved February 5, 2021, from Balance Careers: https://www.thebalancecareers.com/how-great- managers-motivate-their-employees-1918772

Heathfield, S. M. (2020, June 30). Performance Development Planning (PDP). Retrieved February 6, 2021, from Balance Careers: https://www.thebalancecareers.com/performance-development-planning-1916761

Heathfield, S. M. (2020, October 1). Tips to Create Successful Performance Appraisal Goals. Retrieved February 7, 2021, from Balance Careers: https://www.thebalancecareers.com/create-successful-performance-appraisal-goals- 1918840

HR Basics: Performance Management (2017). [Motion Picture]. YouTube. Retrieved February 6, 2021, from https://www.youtube.com/watch?v=SyOZ_4rWWiY&feature=youtu.be

Jones, D. (2016, October 29). How Ongoing Performance Management Benefits the Employee and the Business. Retrieved February 6, 2021, from SHRM Blog: https://blog.shrm.org/blog/how-ongoing-performance-management-benefits-the- employee-and-the-business

Jones, D. (2016, May 24). THE LOOK AND FEEL OF NEXT GENERATION PERFORMANCE MANAGEMENT. Retrieved February 7, 2021, from SHRM'S EXECUTIVE NETWORK BLOG: https://blog.shrm.org/executive/blogpost/The-Look-and-Feel-of-Next- Generation-Performance-Management

Jones, D. (2016, March 1). WHY NEXT GENERATION PERFORMANCE MANAGEMENT IS THE WAY OF THE FUTURE. Retrieved February 8, 2021, from SHRM'S EXECUTIVE NETWORK BLOG: https://blog.shrm.org/executive/blogpost/1346767/240466/Why- Next-Generation-Performance-Management-Is-the-Way-of-the-Future

Leonard, K. (2018, August 20). What Is Performance Feedback? Retrieved February 7, 2021, from Chron: https://smallbusiness.chron.com/performance-feedback-1882.html

Lucas, S. (2019, September 3). How to Provide Constructive Feedback to Develop Employee Skills. Retrieved February 7, 2021, from Balance Careers: https://www.thebalancecareers.com/constructive-feedback-to-help-employees-grow- 4120943

Mayhew, R. (n.d.). Handling And Documenting Employee Performance Issues. Retrieved February 6, 2021, from Chron: https://smallbusiness.chron.com/handling-documenting- employee-performance-issues-10775.html

Ott, B. (2017, October 12). 3 Reasons Why Performance Development Wins in the Workplace. Retrieved February 4, 2021, from Gallup: https://www.gallup.com/workplace/231620/why-performance-development-wins- workplace.aspx?version=print

Performance Management vs Performance Appraisal ( Differences) (2018). [Motion Picture]. YouTube. Retrieved February 6, 2021, from https://www.youtube.com/watch?v=iVYZI8A29P4

Petty, A. (2019, June 25). 10 Tips to Help You Conduct Difficult Workplace Discussions. Retrieved February 6, 2021, from Balance Careers: https://www.thebalancecareers.com/having-difficult-workplace-discussions-2275815

Setting Employee Goals (2014). [Motion Picture]. YouTube. Retrieved February 7, 2021, from https://www.youtube.com/watch?v=M2OPEUjBYdw&feature=youtu.be

Smith, R. (2018, January 10). Communication: The Feedback Sandwich. Retrieved February 7, 2021, from SHRM Blog: https://blog.shrm.org/blog/communication-the-feedback- sandwich

Williams, L. (n.d.). Module 10: Motivating Employees: Goal-Setting Theory. In Introduction to Business. Lumen Learning. Retrieved February 7, 2021, from https://courses.lumenlearning.com/wmintrobusiness/chapter/goals/

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By Dominique Jones (/Author/1047) On October 29, 2016 0 Comments (/Blog/How-Ongoing-Performance-Management-Benefits-The-Employee-And-The- Business#Comments)

How Ongoing Performance Management Benefits the Employee and the Business

  

In previous installments of our four-part series on performance management, we examined why

organizations should manage employee performance on an ongoing basis

(http://blog.hrps.org/blogpost/1346767/240466/Why-Next-Generation-Performance-Management-Is-

the-Way-of-the-Future), what it’s like on a day-to-day basis (http://blog.hrps.org/blogpost/The-Look-

and-Feel-of-Next-Generation-Performance-Management), and how to train managers to provide

effective feedback and coaching (http://blog.hrps.org/blogpost/Investing-in-Employee-Engagement-

and-Satisfaction) to employees.

To wrap-up our series, we’ll look at how to use information gathered during the year to help

managers and employees during the annual performance appraisal process.

Don’t Be So Quick to Ditch the Annual Review

There has been a lot of buzz surrounding the idea of getting rid of the often-hated year-end review.

The idea is that ongoing performance management can replace the annual review.

Not so fast.

We know the annual review as a standalone, separate, or one-time event where managers and

employees discuss performance or career goals does little to support employee engagement.

Many organizations want to adopt ongoing performance management approaches throughout the

entire year, but still want a summary assessment of performance. The review should simply be a

summary of the performance during that period, where feedback, goal, and development discussions

have happened all year long. When approached this way, ongoing performance management

actually enhances the annual review and make it more relevant in today’s business climate.

1 (https://blog.shrm.org/flag/flag/blog_likes/7370? destination=node/7370&token=d32236495c314a2f7ec36ed5158cef12&ha



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As mentioned in a previous blog in this series, the look and feel of ongoing performance

management may vary depending on the unique needs of your business. Getting the conversations

started about performance is only the first step. The next step is to train and encourage staff to take

careful notes on feedback given and received, and how to capture information related to employee

performance or learning and development opportunities.

Documenting the Discussion

Nobody likes surprises when it comes to how their performance is evaluated—nor should there be

any. A study by TriNet and Wakefield Research (http://www.humanresourcesonline.net/1-5-employees-

rather-call-sick-face-performance-reviews/) found that 62 percent of people surveyed felt blindsided

by annual performance reviews and 59 percent felt that managers were unprepared to give

feedback. Having a record of performance conversations is important because it ensures that the

year-end review is a comprehensive look at an employee’s year, not just what can be remembered

over the last few weeks or months.

Managers and employees can benefit from reviewing the information gathered during one-on-one

meetings before the annual performance review takes place. Here are some tips to help employees

and managers get ready for the year-end assessment.

How Employees Can Prepare for the Annual Review

Gather progress on goals and development plans

Match up tasks and responsibilities against job-specific competencies

Review performance journal notes

Prepare a list of accomplishments

Do a self-evaluation

Identify career growth intentions

Identify possible goals for the upcoming year that align with the organization’s goals

How Managers Can Prepare for the Annual Review

Collect feedback from an employee’s peers and internal clients

Review the employee’s performance, demonstrations of competencies, and goal achievements

Think about goals for the coming year that align with the organization’s overall objectives

Consider the employee career growth potential (and then discuss career growth with the

employee and offer guidance on to develop an action a plan)

As long as employees and managers take careful notes throughout the year, collecting this

information will be simple.

How Technology Can Help

Ongoing  performance management doesn’t have to create more work than your existing annual

review process, and in fact can be streamlined with the right technology.

A 2015 report by the Aberdeen Group found that companies with “best in class” talent management

programs are 26 percent more likely to be using performance management software

(http://blog.capterra.com/the-top-11-hr-technology-statistics-for-2016/). Performance management

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software can go a long way in helping organizations make ongoing performance management a

natural fit for their businesses by focusing on engaging and aligning employees to achieve strategic

outcomes, not just automating paper processes.

With features that help create and support personal and organizational goals, foster a culture of

continuous coaching and feedback, and help staff build professional development plans that create a

clear path for growth, performance management technology can enable employees and managers to

have meaningful, ongoing performance and career-related discussions, and gather key business

insights to analyze and measure progress. 

Sorting Through the Data

As the annual performance meeting nears, information about employee performance can be

collected and analyzed. This analysis is important for HR, as it provides the opportunity to think ahead

and anticipate potential opportunities or challenges.

The development and investment in “people analytics” has grown from 2015 to 2016, according

toDeloitte’s 2016 Global Human Capital Trends (http://dupress.com/articles/people-analytics-in-hr-

analytics-teams/) report. The survey found that 77 percent of companies believe that people analytics

is important, with 38 percent say they are adequate at conducting multi-year workforce planning,

compared to just eight percent in 2015.

Some useful metrics for HR professionals to consider include:

High-performer growth rate

Average employee performance rate increase

Performance appraisal completion rate

Critical competency scores

Percentage of employees tracking goals

Percentage of goals obtained

HR needs to measure the metrics that matter to its business, and examine the results to see where

the performance management process can be improved.

The Big Picture

Ongoing performance management helps ensure employees and managers discuss learning and

development, build relationships, and improve engagement. Combined with annual performance

reviews, ongoing performance management helps gather key HR metrics, giving clear insight into

employee performance as well as informing decisions about compensation, promotions, and learning

and development plans.

Technology is undoubtedly a big help when adopting ongoing performance management, but the

basis will always be improving communication and building relationships. Ensure your people are

successful, and they’ll help your business succeed too.

Originally posted on blog.hrps.org on October 18, 2016. Reposted with permission. 

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(/author/1047) WRITTEN BY Dominique.Jones (/author/1047)

Dominique Jones is chief people officer at Halogen Software.

Dominique has over 20 years experience in the talent management industry and has held

progressively more responsible senior HR roles both in Europe and in North America. Dominique has

extensive industry experience, having worked in the retail, manufacturing, financial services,

consulting and professional services sectors.

The industry diversity in Dominique's career has led to extensive practical experience in

organizational change, aggressive growth initiatives, talent and performance management, and

international HR management.

Prior to joining Halogen, Dominique was most recently a regional vice president at Right

Management, a global talent management consulting firm. Before that, she held senior HR roles with

AMEC, MBNA Canada and MBNA Europe, JCB Transmissions, Safeway, and Marks and Spencer, as

well as established her own HR consulting business.

Dominique holds an M.A. Honours degree from St. Andrews University in Scotland, as well as the

Institute of Personnel and Development (IPD) certification from the United Kingdom.

The SHRM Blog does not accept solicitation for guest posts.

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Tips to Create Successful Performance Appraisal Goals What a Manager Can Do to Improve Performance Appraisal Goals

• • • Table of Contents

• Tips for Goals in a Performance Appraisal • 3 Key Ways to Improve Employee Performance • Final Thoughts on Successful Goal Setting

BY SUSAN M. HEATHFIELD Updated October 01, 2020

Many people think that the goal-setting portion of the performance appraisal system interferes with the effectiveness of the overall process, which is why they often don't work. However, the goal-setting process, in and of itself, is not really the problem.

The problem is that people set too many goals, and then, they micromanage the "how- to-do" of the employee accomplishing the goals. What should happen, in contrast, is, each employee should have broad, thoughtful goals that zero in on the most important requirements the organization needs to acquire from their contribution.

Tips for Goals in a Performance Appraisal

Use the following tips to make sure you are setting your employees up for success with goals that focus on the contribution your organization most needs from them.

Giving Add On Goals Following the Appraisal Meeting

Giving an employee a goal after an appraisal meeting is something that should be done sparingly. The employee should already have agreed upon a time period's goals in the meeting and exchange.

Too Many Goals and Micromanaging

You will want to avoid over-managing the employee as they work to achieve their goals.

If an employee has more than four to six goals, the organization’s expectations are too high and maybe a sign the manager is micromanaging the steps involved in accomplishing the broader goals.

For example, the first three goals are to first, increase the quality of the parts produced by 10% as measured by the quality indicators by the end of the next appraisal time period. The second is to use the quality indicator known as thickness to increase the quality of the parts. The third is to use the quality indicator weight to ensure all parts are created equal. Note that the first goal is appropriate. The second and third are micromanaging the employee's work.

The Lack of Clear Direction and Discouragement

With too many goals that the employee can't see reaching, you will find that discouragement and distrust for the company's direction will set in. The employee will also feel that they are missing out on the needed clear direction, which is recognized regularly as one of the worst characteristics of managers who are identified as bad bosses.

No Differentiation in Importance

If an employee is told that all of those goals are important and he must achieve them all, he will have no sense of his real priorities. This leads to the feeling that he is not actually performing effectively in his role.

Micromanaging the How-To of Achieving the Goal

Employees need to have the end in mind but manage their own route with feedback and coaching along the way. It empowers employees to contribute to the strategic framework of the organization while bringing forth their engagement and commitment to achieving all of the expectations.

3 Key Ways to Improve Employee Performance

Use these methods to improve performance appraisal goals. They are simple, yet powerful, as they encourage positive goal completion.

Set around four to six goals.

The employee has signed up for an unachievable agenda. Always encourage and enable time so the employee can work on personally desired developmental goals in addition to the business goals. You’ll end up with an effective, successful, contributing employee who is meeting his or her needs at work, too.

Take a serious look at the detail involved in the employee’s goals.

If the detail is too specific or additional goals tell the employee how to accomplish the goal as in the above example, you may be micromanaging. This will bring about discouragement as the employee feels constrained.

Trust the employee to figure out how to attain the goal.

Be available for discussion, feedback, and coaching. If you're uncomfortable with that, establish a critical path with the employee, which is a series of points at which the employee will provide feedback about progress to you.

Final Thoughts on Successful Performance Goal Setting

If you can, always provide these components of goals for effective goal-setting as you work with your employees. Employees who know their goals, receive regular feedback on their progress, and are rewarded and recognized for goal-achievement are likely to succeed and stay in your organization.

Managers who empower employees to accomplish their agreed-upon goals are successful managers. Managers who know how to stay out of the way and cheer their employees on are even more successful.

Certainly, this is the desired outcome of any goal-setting process, whether you call it performance appraisal, performance evaluation, or, the current preferred strategy, performance development planning.

How to Provide Feedback That Helps Employees Improve Your Feedback Has an Impact When Provided Respectfully and With Care

• • • Table of Contents

• Provide Feedback That Has an Impact • Here's How You Can Provide Feedback • Tips for the Most Effective Feedback

BY SUSAN M. HEATHFIELD Updated November 21, 2019

Provide Feedback That Has an Impact

Make your feedback have the impact it deserves by the manner and the approach you use when you want to provide employees with performance feedback. Your feedback can make a difference to people if you can avoid provoking a defensive response.

Especially to perceived negative or less than positive feedback, employees have a tendency to react defensively because people tend to take feedback personally and not professionally. This is a deterrent to your ability to help the employee improve their performance.

These guidelines will help you help employees develop their performance through your positive use of feedback.

Here's How You Can Best Provide Feedback

Effective employee feedback is specific, not general.

To provide specific feedback, for example, say, "The report that you turned in yesterday was well-written, understandable, and made your points about the budget very effectively." Don't say, "good report." This statement is too general for the employee to use the information to improve.

One of the purposes of effective, constructive feedback is to let the individual know the specific behavior that you'd like to see more of from him. General feedback like a pat on the back makes the employee feel good momentarily but doesn't do a good job of …

Final Assessment: Case Study 2: Employee Relations and Performance

Management

Worth up to 25 points and 25% of course grade

The purpose of the activity is for you to evaluate and critique employee relations and

performance management issues and recommend employee relations and performance

management solutions.

Assignment alignment with Course Competencies:

• Interpret HR performance management issues and challenges to develop strategic

solutions and interventions.

• Critique performance management initiatives to ensure alignment with HR and

organizational strategies.

• Recommend performance management solutions or initiatives to address dynamic

customer and stakeholder needs.

• Understand and apply metrics to determine the effectiveness of performance management

programs in supporting HR and organizational goals.

• Recommend employee retention strategies to align with HR and organizational goals.

• Understand and apply employee relations practices to enhance organizational

effectiveness and minimize organizational risk.

Deliverable:

1. Read the entire case study carefully (including exhibits A – D) and then respond to the

seven Discussion Questions on page 6. Answer all questions and all parts of each

question.

2. Develop each answer to the fullest extent possible, including citations from course

resources, where applicable, to support your arguments.

3. Submit your assignment as a separate MS Word document in your assignments folder.

Do not type your answers into the case study document.

4. Include a Cover Page with Name, Date, and Title of Assignment.

5. Do not include the original question. Use the following format: Question 1, Question 2,

etc.

6. Each response should be written in complete sentences, double-spaced and spell-checked.

Use 12-point Times New Roman font with 1-inch margins on all sides.

7. Include page numbers according to APA formatting guidelines.

8. Include citations in APA format at the end of each answer.

9. You must submit to the assignment link by the due date (final day of class). A missing

assignment will be assigned a grade of 0.

© 2008 SHRM. Rudolph Sanchez, Ph.D., and Mary Bielenberg-Sanchez 1

Final Exam Case Study

Please read ALL directions below before starting your final assignment.

INSTRUCTIONS:

• Read the entire case study carefully (including exhibits A – D) and then

respond to the seven Discussion Questions on page 6. Answer all

questions and all parts of each question.

• Develop each answer to the fullest extent possible, including citations from

course resources, where applicable, to support your arguments.

• Submit your assignment as a separate MS Word document in your

assignments folder. Do not type your answers into the case study

document.

• Include a Cover Page with Name, Date, and Title of Assignment.

• Do not include the original question. Use the following format: Question 1,

Question 2, etc.

• Each response should be written in complete sentences, double-spaced

and spell-checked. Use 12-point Times New Roman font with 1-inch

margins on all sides.

• Include page numbers according to APA formatting guidelines.

• Include citations in APA format at the end of each answer.

• You must submit to the assignment link by the due date (final day of class).

A missing assignment will be assigned a grade of 0.

2 -Sanchez

Jenna Richards is the senior human resource director for the tape storage division of Vully Technology Inc. (VTI). Jenna has been with the

company since its inception. Last week, Jenna was part of an executive committee meeting in which overall cost reductions surfaced as an

issue. One likely option that was explored was to significantly reduce human capital costs. If adopted, this would be the second reduction in

human capital to occur in Jenna’s unit in the past three years. Jenna knows that it is important to balance business efficiency considerations

with compassion for employees who may lose their jobs after many years with VTI. Additionally, Jenna is concerned about the long-term

success of the organization and the morale and performance of the employees who remain in the event of a reduction in force (RIF). She

knows that the road ahead will be rough and that it will be her responsibility to ensure that the organization navigates that road with care in

order to maintain profitability.

Vulley Technology Inc. History

VTI, headquartered in San Jose, CA, was established in 1992 during the dot-com boom. It competes in the computer storage industry,

specifically offering a tape drive portfolio of products which provides backup and recovery capabilities to organizations. Most recently,

VTI introduced a network attached product: a server dedicated to file sharing only. VTI went public in 1998. It is publicly traded on the

NASDAQ under the ticker symbol VTI. Over the past 10 years, the stock price has increased in value from $10.25 to $45.33. This year,

the stock price started at $35.06; hit a low of $28.13 in February; and hit its all-time high of $45.33 in June.

When it went public, VTI had a workforce of 100 employees. Today, VTI has a global workforce of approximately 6,500 regular

employees and 1,500 contingent workers. The company’s culture has historically been very employee-friendly. For example, even though

private pension plans have all but become extinct, VTI provides a pension plan. This defined benefit retirement plan was established to

provide a strong base for building retirement security for VTI employees. Benefits under this plan had been funded 100 percent by VTI

with no contribution made by the employee. This practice stopped for incoming employees in 2005 and was replaced by an increased

percentage match for the existing 401(k) plan, a voluntary program and valuable savings source for employees’ future financial needs.

Bob Cuellar, VTI’s CEO, consistently tells employees, shareholders, and the press that “VTI is successful only because we have the most

talented, well-trained, and rewarded employees in the industry.” Due to its treatment of employees, VTI has been able to avoid the

unionization of its workforce. However, because of the uncertain climate in the high-tech industry and a recent RIF, talk of unionization

has arisen in the past two years.

VTI’s workforce had grown significantly since 1998 but has only remained steady over the past year. Fortunately, the organizational

culture is such that VTI leaders have been able to re-skill and shift resources to cover “hot” and future projects, rather than reducing

headcount through a formal RIF. Eighteen months ago, however, the first RIF in VTI history occurred. In that RIF, the tape storage

division lost 79 employees, primarily through early retirement incentives. The tape storage division currently has approximately 700

employees. The employees are scattered throughout the United States, including three recently acquired sites in Northern California;

Durham, North Carolina; and Houston, Texas. A partial organization chart is provided in Exhibit A.

Current Financial/Market Pressure

While the storage industry is a growing market, VTI did not shift their product mix appropriately to adjust to the decline of “classic”

products. VTI lost revenue and market share over the past three quarters due to fierce competition, inappropriate product mix/focus and

misaligned sales force incentives. Sales in the European region are down 25 percent.

Disappointing third-quarter results have just been reported, and the executive team held a three-day offsite meeting to discuss the current

status and future strategy. To regain market share, management believes that the product mix must shift, which could include a shift in

human capital expertise. However, skill sets from tape drives to attached storage are not easily transferable; management is appropriately

nervous that to turn VTI’s market position around in a reasonable timeframe, they may have to implement a RIF.

© 2008 SHRM. Rudolph Sanchez, Ph.D., and Mary Bielenberg-Sanchez 3

© 2008 SHRM. Rudolph Sanchez, Ph.D., and Mary Bielenberg

A Difficult Reality

The executive team has determined that the tape storage unit must reduce human capital costs by approximately $20 million per year. This

cost savings figure was derived by calculating the annual salary of an employee plus 30 percent of that salary, which is an estimate of the

organizational contribution to the employee’s benefits and other employee costs (e.g., training). With an average salary of $128,000 in the

unit, the $20 million target is equivalent to 120 employees.

Human Capital Cost Savings Strategies

Jenna, the finance department, and other members of the executive team are charged with exploring a reduction in human capital

expenditures. Given Jenna’s HR expertise, she encourages the team to consider a number of different strategies to reach the budget target

while avoiding an involuntary RIF. Each of these strategies includes anticipated savings based on the previous RIF.

Early Retirement

Jenna believes that offering early retirement packages is one of the best ways to reduce costs and still produce a favorable outcome for

employees. Generally, this involves offering attractive incentives for employees to leave the organization. Eligible employees (based on a

combination of the number of years of service at VTI and age) receive one week of severance pay for each year of service and other

benefits. For example, an employee whose combination of years of service (with a minimum of 15 years of service) plus age equaled 53 or

higher is eligible to take early retirement, with a minimum of six months’ severance and maximum of 12 months’ severance. In addition,

VTI would pay 100 percent of health care benefits for five years. In the short term, this is an expensive strategy; it takes three early

retirements to equal one involuntary reduction in force. Further, because this approach was used in the previous cost reduction initiative,

the unit is in danger of losing too many of its senior employees and the organizational knowledge they possess. Today, 105 (15 percent) of

the employees in the tape storage unit are eligible for early retirement.

Voluntary Leave of Absence (VLOA)

VLOA is another voluntary cost reduction strategy in which employees agree to leave VTI for a specified period of time, usually between

six months and one year. After that time, employees are eligible to return to the company. This is a short-term strategy. In the previous

initiative, very few employees requested a VLOA.

Redeployment

It is possible that employees in the tape storage unit can be redeployed to other VTI units. This would result in a cost savings to the unit

and at the same time, retain organizational knowledge, since employees would remain with VTI.

Redeployed employees are immediately taken off the tape storage unit books with no severance package, making this option the most

cost-efficient means of meeting the targeted reduction.

Standardized Unit-level Cuts

One simple approach to a cost saving initiative is to have each manager in the unit reduce costs by 20 percent. This would leave the

decision and administrative process for implementation to each manager’s discretion.

Reduction in Force

Jenna finds the involuntary RIF the least attractive option. Not only has VTI attempted to avoid RIFs in the past, this option requires

making difficult decisions and delivering difficult messages. Based on the size of the cost reductions necessary, however, it appears that

an involuntary RIF will be necessary.

4 -Sanchez

© 2008 SHRM. Rudolph Sanchez, Ph.D., and Mary Bielenberg

Jenna considers three general strategies:

• Layoff. This is the most commonly used approach in a RIF. In this scenario, the number of employees needed to reach the cost

savings target are identified and released from the organization.

• Projects. Rather than using the individual employee as the unit to measure human capital cost, Jenna may use projects as the unit.

For example, rather than identifying 15 people from around the unit to reduce costs by $1 million, Jenna may find a project(s) with

associated employees to save $1 million.

• Sites. Similar to reducing costs by eliminating projects, Jenna could close sites in the U.S. In the tape storage unit, possible sites

include a 15-person unit in Northern California; a 10-person unit in Durham, North Carolina; and a 20-person unit in Houston, Texas.

While an attractive option, all of these sites were acquired within the past two years because of the talent or technology they

possessed.

Who Should Stay and Who Should Go

With the agonizing decision to actually initiate a layoff, Jenna considers a variety of criteria to determine who to lay off to reach the cost

reduction target. She realizes that determining the selection criteria is one of the single most important things to consider. Jenna also

realizes that the methodology and decisions should be legally defensible to minimize the potential for litigation. Jenna needs to consider

protected classes, including those over 40 years of age and ethnicity, and ensure that these classes are not adversely impacted by the RIF.

Just as with any employment decision, RIFs must be made with the appropriate laws and guidelines in mind.

• Performance. One factor to consider is overall job performance. Consider retaining those that exceed job expectations against goals

and possess good leadership skills; have a flexible skillset; and are adaptable to change.

• Time in Job. Jenna realizes that in many organizations, especially unionized companies, seniority is a significant factor in

determining whom to lay off. Despite the non-union environment, during the last RIF, the “fairness” of laying off more senior

employees who had been “loyal” to the company was questioned.

• Salary. From a financial standpoint, eliminating higher-paid employees will likely result in fewer total jobs lost. Jenna may consider

using job salaries as one of the criteria for the layoff. These criteria should include looking at where employees are paid by job and

consider cutting those with higher salaries (e.g., over midpoint in the salary band).

• Skillset Needed Going Forward. Based on the overall strategy and product roadmap, Jenna should consider what skillsets

(technical and non-technical) the unit will need going forward to achieve both business and financial goals.

• Project Position Eliminated. Jenna might also take into consideration what work the division will no longer be doing and whether

specific projects (e.g., terabyte tape project) or positions (e.g., program management of the next tape storage release) could be

eliminated.

• Temporary Headcount. Another initially attractive option is to consider eliminating the 150 temporary employees in the tape

storage unit. Unfortunately, Jenna knows that in virtually all cases, the temporary employees were hired to address critical skill gaps

that existed in the regular employee base.

Realizing that a layoff is a likely option, Jenna drafts a timeline and two communication messages. Exhibit B presents the planning and

communication timeline. The draft Notification Letter to affected employees (Exhibit C) and the draft e-mail message to all VTI tape

storage employees (Exhibit D) are also provided.

© 2008 SHRM. Rudolph Sanchez, Ph.D., and Mary Bielenberg-Sanchez 5

© 2008 SHRM. Rudolph Sanchez, Ph.D., and Mary Bielenberg

The Decision-making Process

After managers in the tape storage unit agreed on the set of criteria, each manager reviewed all direct reports and generated a list of

possible employees to lay off. A brief explanation of why each individual was selected was provided. The leadership team of the tape

storage unit made the final determination of which specific employees would be laid off. This list was subject to a legal review prior to

implementation.

The Notification Process

The process to notify affected employees was reasonably effective during the previous layoff. Regardless of the number of employees

subject to layoff, VTI decided to adhere to the guidelines outlined in the WARN Act, even though it was not legally required to do so.

Based on the previous experience, Jenna prepared two documents to assist in the notification process. Since affected employees’

immediate supervisors were the individuals notifying those employees in person, Jenna developed an outline of points for them to cover

and a notification letter to be delivered during the meetings.

The Survivors

After the actual layoff, Jenna knows that it is important to help the organization, especially the tape storage unit, return to normalcy and

productivity. To help re-engage the staff, it is critical that the management team be visible and available to both those affected by the RIF

and those who survived. Organizational leaders must be available to answer questions, discuss the future, honor the past, and, in general,

be available for employees who just want to talk about what happened or their personal situation. Using a model such as William Bridges’

“Managing Transitions—Making the Most of Change” (2003), where you say goodbye to the ‘known’, shift into a neutral state and then

move forward, is vital to the success of this type of transition.

6 -Sanchez

Discussion Questions

It is obvious that Jenna has a lot of work to do. Please develop responses to the following questions:

1. What would you recommend as the best mix of cost reduction strategies (e.g., reduction in force,

redeployment, early retirement)? What are the strengths and weaknesses of each of the strategies

listed? Can you think of any additional strategies? Do you agree that a reduction in force is the best

approach? Why or why not?

2. Assume that Jenna will need to orchestrate a layoff as part of the cost savings solution. Evaluate

the different criteria options proposed to select the employees to lay off (e.g., performance, time in

job, salary, skillset needed going forward, project position eliminated, and temporary headcount).

What are the advantages of each option? What are the risks of each option? Are there other criteria

that can be used? If you were Jenna, which criteria would you be inclined to use and why?

3. Assume performance is used as one of the selection criteria. Discuss in detail the specific

performance data Jenna will need to obtain and how she will access it.

4. What steps should Jenna take to minimize the risk of wrongful terminations? What legal issues

should be considered?

5. What is your assessment of the two draft communications provided (the letter to affected

employees and the e-mail to all employees)? Is there anything you would change? If so, what?

6. How can Jenna address negative morale within the department, increase employee motivation and

engagement, and mitigate any retention issues?

7. How can Jenna continue to ensure high performance among remaining team members? How can

she proactively mitigate performance issues?

© 2008 SHRM. Rudolph Sanchez, Ph.D., and Mary Bielenberg-Sanchez 7

© 2008 SHRM. Rudolph Sanchez, Ph.D., and Mary Bielenberg

Exhibit A

Below is a portion of the VTI organization chart. As indicated in the main case document, R&D directors and R&D project manager units

are not all located in one facility.

Exhibit B Planning/Communication Timeline

8 -Sanchez

Finalize Impact to Business Example: 1/14/xx Company executives work with finance and HR to finalize the effect to the technical roadmap and how that will affect product schedules,

human capital, etc. (two months before notification date).

Define Selection Criteria Example: 1/28/xx

Management works with HR to finalize selection criteria and begin identifying individuals or projects based on key strategic business

decisions (six weeks before notification date).

Finalize Selection Example: 2/11/xx

Finalize selection of affected employees and get legal approval on selections (one month before notification).

Prepare Notification Packets Example: 3/3/xx

Prepare notification packets for employees (one week before notification date).

Notification Date Example: 3/10/xx

Immediate managers notify all selected employees for RIF in person; the notification letter and other RIF materials (e.g., severance details,

timeline for exiting the tape storage division) are provided to all affected employees; all managers in the tape storage unit as appropriate

are notified of the reduction in force happening on-site that day.

Post Notification Example: 3/10/xx +

Inform customers, key stakeholders and partners as appropriate.

Exhibit C Notification Letter

[Date]

[Employee Name]

Dear [Employee Name]:

We are sorry to inform you that due to ongoing budgetary constraints and continuous efforts to remain competitive, your job has been

affected, effective today, [date].

Beginning today, you will be placed in the Vulley Technology Inc. (VTI) Working Notice Period, a program under the VTI Reduction in

Force Plan, for a period of three weeks, during which you will continue to report to work.

If, at the conclusion of the working notice period, you have not secured another position at VTI, you will be released into the PostWorking

Notice Period program for a period of six weeks. You will continue to receive pay and benefits but will not be required to report to work

during this time.

The information given to you in this packet is consistent with the requirements of the Federal Worker Adjustment and Retraining

Notification (WARN) Act, and the planned action is permanent.

© 2008 SHRM. Rudolph Sanchez, Ph.D., and Mary Bielenberg

© 2008 SHRM. Rudolph Sanchez, Ph.D., and Mary Bielenberg-Sanchez 9

Your contribution to the tape storage unit at VTI has been invaluable. Your loyalty has been very much appreciated and you will be

missed. We have hired a career transition firm to meet with all employees subject to the layoff. They will provide assistance with your job

search, including conducting workshops to enhance your résumé, interviewing and job search skills. Please see the enclosed schedule for

further details.

In the event that you do not secure another position at VTI, we will offer you a severance package at the end of your six-week postworking

notice period that we hope will make your transition to new employment less difficult. The severance package consists of one week of pay

for every year of service, with a minimum of two months’ severance and a maximum of six months’ severance.

Thank you again for your hard work in the tape storage unit. We wish you the best in your future endeavors.

Very truly yours,

Bob Cuellar

CEO

Exhibit D E-mail Message to All Tape Storage Employees on Notification Date

To All Tape Storage Employees,

In order to remain competitive and to ensure a solid cost structure for next year, we have had to make adjustments to our product roadmap

which has resulted in a Reduction in Force. Today we are announcing a reduction of [number] employees. This was a very difficult

decision for VTI, and especially for the executives in the tape storage unit. As you know, we truly value all our employees. It is also very

difficult for the individuals whose jobs are affected. Human Resources will be working with those affected employees to get as many as

possible redeployed to other positions at VTI.

I know everyone is working very hard across the organization to deliver on our product roadmap commitments and we thank you. It

remains important to stay focused on those deliverables so we can capitalize on our strong product roadmap into next year.

For a complete list of affected employees, please contact your immediate manager.

Regards,

Stacey York

Vice President

Tape Storage Unit