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© 2006 Thomson-Wadsworth

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© 2006 Thomson-Wadsworth

© 2006 Thomson-Wadsworth

Learning Objectives

• State the reasons for having a structured orientation program for new employees.

• List the components of new employee orientation programs.

• Describe the purpose of using an orientation checklist.

• Differentiate between organizational orientation and orientation to the job.

© 2006 Thomson-Wadsworth

Learning Objectives

• Describe the purpose of in-service training programs.

• Differentiate between in-service training and continuing education.

• Describe ways in which employees are supported in continuing education endeavors.

• State the reasons for conducting performance appraisals.

© 2006 Thomson-Wadsworth

Learning Objectives

• Describe how performance appraisals are conducted.

• List the characteristics of effective compensation programs.

• Identify the relationship between motivation and compensation.

• Differentiate among components of compensation packages, including merit increases, cost-of-living adjustments, single pay rates, and pay for performance.

© 2006 Thomson-Wadsworth

Learning Objectives

• Discuss non-monetary methods of motivating employees.

• Describe the relationship between motivation and job mobility.

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Employee Orientation

• Orientation – The process of introducing a new employee

to an organization, job, and work unit.

• Orientation to the job– Outline of the day– Introduction to staff– Tour of the workplace– Guidance in use of equipment– Explanation of duties

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Employee Orientation

• Orientation to the job– Written job analysis/job description may be

provided– Mentor - A person whom one with less

experience may consult for advice and guidance.

– Orientation Checklist - A document that lists all of the items that are to be accomplished or introduced during a new employee orientation.

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© 2006 Thomson-Wadsworth

Employee Orientation

• Orientation to the organization– May be conducted

individually or in groups

– Introduction to organizational philosophy/mission

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Employee Orientation

• Orientation to the organization– Explanation of benefits package– Tour of entire facility– Orientation Packet - An information

packet handed out during an orientation that may include such items as information on benefits, a map of the facility, a list of commonly used telephone numbers and Internet addresses, a copy of the organization chart, and so on.

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In-Service Training

• In-Services - Educational activities that are designed to update and introduce employees to new issues or topics pertinent to their jobs and organization, or to review and refresh employees on material that is already known.

• They usually occur at the workplace and during work hours.

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In-Service Training

• Two general types:– Brief work-related training sessions

that occur in the workplace– Longer, more

extensive training sessions that require time off from duties and often occur off-site

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In-Service Training

• Off-site in-services are often used to introduce new things

• Employees may earn educational credits

• Off-site in-services may be presented by specialists trained in conducting such events

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Continuing Education

• Continuing Education - Educational activities that are conducted by an external organization and that take place outside of the workplace.

• ex: trade shows, educational workshops or seminars, college or university courses

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Continuing Education

• May be subsidized in several ways:– Paid days off to attend courses/events

paid for by employee– Payment of course/event costs by

employer– Tuition reimbursement for college/

university courses

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Performance Appraisal

• Performance Appraisal - A tool used by managers to evaluate personnel and to help employees identify their strengths as well as areas that need improvement.

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Performance Appraisal

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Performance Appraisal

• Timing is often specified by organizational policy

• Usually, a standard evaluation document is completed– Deals with whether employee met goals

established at previous interview– ex: Figure 2.2 Performance Evaluation for a

Diet Clerk

• Manager meets with employee to discuss documents

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© 2006 Thomson-Wadsworth

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© 2006 Thomson-Wadsworth

Compensation Issues

• Merit Increases – Pay raises that are based on

employee performance. – These raises change the base pay

rate permanently.– Often, a position has a salary range to

accommodate incremental merit increases.

© 2006 Thomson-Wadsworth

Compensation Issues

• Cost of Living Adjustments (COLAs) – Pay raises that are based on inflation

rates and are used to keep an employee’s purchasing power intact despite economic changes over time.

– These raises change the base pay rate permanently.

© 2006 Thomson-Wadsworth

Compensation Issues

• Single rate systems– Single Rate - Pay raises that are universal

and given to all employees either on an anniversary date or on an annual basis.

– It rewards employees equally, as long as their work falls within the standard range.

– This pay increase results in a permanent adjustment in the base pay rate.

© 2006 Thomson-Wadsworth

Compensation Issues

• Pay for Performance– Incentive pay programs that may be

used alone or in combination with other compensation plans to reward employees based on performance.

– These are one-time incentives that do not change the base pay rate.

© 2006 Thomson-Wadsworth

Compensation Issues

• Pay for Performance– Annual Bonus - One type of pay for

performance that is earned at the end of the year for outstanding performance during that year.

• It usually results from meeting a pre-established goal. • This is a one-time bonus that does not change the

base pay rate.

– Variable Pay - A compensation plan in which an employee receives a base salary or hourly wage and then an added bonus based on performance.

© 2006 Thomson-Wadsworth

Compensation Issues

• Pay for Performance– Cash Award - A pay for performance

plan that awards cash to employees for being creative, innovative, helpful, or just good citizens. • It is usually a one-time award.

– Employees may also be awarded for skill development.

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Nonfinancial Incentives

• Special parking place

• News release• Certificates,

plaques, trophies

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Nonfinancial Incentives

• Workplace displays recognizing group achievements– ex: drawing of thermometer to represent

sales goals and progress

• Verbal praise• Additional training in the workplace• Departmental subscriptions to journals• Openness to staff suggestions

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Job Mobility

• Job Mobility - The ability of an employee to change jobs.

• Moves can be downward, upward, or lateral within an organization, or to another organization.

• Downward Mobility - When an employee reverts to a previous or lower position in an organization.

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Job Mobility

• Upward Mobility - When an employee is promoted to a higher position in an organization.

• Lateral Move - When an employee takes a new position at the same organizational level as the former position. – This is sometimes done so the

employee can learn new skills.

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Conclusion

• New employees need to be welcomed into an organization with an orientation both to the job and to the organization itself.

• Employee development includes both internal programs, called in-services, and continuing education opportunities outside of the organization.

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Conclusion

• Performance appraisals are an effective tool for managers and employees to evaluate performance and to set goals for future development.

• Organizations use different kinds of compensation programs to motivate employees to perform well and to reward them for good performance or longevity.

© 2006 Thomson-Wadsworth

Conclusion

• Compensation programs should be competitive, allow for employee growth, be well defined, and be equitably administered.

• Nonfinancial motivational tools, though not always as effective as financial ones, can be used as a substitute for, or in conjunction with, financial incentives.

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Motivation in a Union Environment

• Unions:– Negotiate

• Wages and differential wages, • Work hours, • Insurance benefits, • Workman’s compensation, • Paid time off, and • Working conditions

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Motivation in a Union Environment

• Unions:– Define

• What constitutes the worker’s jobs, which can only be done by union members, and

• What constitutes management jobs that cannot be done by represented employees

• The results are finalized as a contract that usually lasts for a specified period

© 2006 Thomson-Wadsworth

Motivation in a Union Environment

• Motivational tools available to management are limited by the contract(s)

• Creative motivation– Conduct thorough, timely performance

appraisals– Nonfinancial programs

• ex: "Employee of the Month"

– Verbal praise