Recruitment, training, performance, rewards
•    To learn how HR policies, procedures and tools can help to develop and increase effectiveness of a firm

•    To understand which HR procedures and tool are useful for art and craft firms

•    To be able to implement some of the useful HR procedures and tools

•    To learn how effectively manage people in organizations

In today's rapidly-changing business environment, and facing so many challenges such as workforce scarcity, the lack of talents, diversity etc. HR management plays important role in gaining a competitive advantage. An organisation cannot build a good team of working professionals and achieve high performance without good Human Resources.

The key functions of the Human Resources Management (HRM) team include recruiting, training and development, performance management and rewarding employees. This course provides through all these processes.

 Course contents:

 Job analysis

The recruitment and selection process

Clic to read  The recruitment and selection process

Job analysis is one of the first steps in the recruitment and selection process. It is aimed at analysing current and future needs in field of employment, identifying of requirements for the openings.

Job analysis involves collecting information on the characteristics of a job that differentiate it from other jobs, e.g.  work activities and behaviors, interactions with others, performance standards, machines and equipment used, working conditions, supervision given and received, knowledge, skills and abilities needed.

Organizations creates two documents: job description and specification.

Behavioral aspects of job analysis

Clic to read  Behavioral aspects of job analysis

The job analysis can identify the difference between what currently is being performed in a job and what should be done. Often the content of the job may reflect the desired and skills of the incumbent employee, e.g. an employee likes to sort the mails, as s/he done it in the previous work, while in this job s/he should concentrate more on supervising the employees and delegate emails sorting to one of the younger employees.

The manager can meet with the employee and discuss what does it means to be a supervisor and what duties should receive more emphasis.

Current job emphasis: the job description and job specification should not describe just what the person currently does and what his/her qualifications are. Employees may feel anxious about the detailed investigation of their job if they don’t understand properly its aim. In fact, having a well-written, well-communicated job description can assist employees by clarifying what their roles are and what is expected from them.  As jobs change, job description and job specification should be updated.

In order to avoid employee statement: "It is not in my job description" it is recommended to include a phrase in the job description: "employee performs other duties as needed upon request by immediate supervisor"

Job analysis methods

Clic to read  Job analysis methods

Work sampling – manager can determine the content and pace of a typical workday through statistical sampling of certain actions rather than continuous observation. This method is used for routine and repetitive jobs

Employee/Diary log – employee „observe” their own performance by keeping a diary / log of their duties, noting how frequently they are performer and the required time for each duty

Interviewing - Manager or HR specialist visit each job site and talk with employees performing each job

Questionnaires - are done with survey instrument, which are given to employees and managers to complete. Sections: Duties and percentage of time on each, special duties performer less frequently, external and internal contacts, work coordination and supervisory responsibilities. Materials and equipment used, decisions made and discretion exercised, records and reports prepared, knowledge, skills and abilities used, training needed, physical activities and characteristics, working conditions. The job analysis is both qualitative and quantitative process.

Job analysis process

Clic to read  Job analysis process

Identify jobs and review existing documentation

- Explain process to Managers and Employees

- Conduct Job Analysis using Interviews, Questionnaires, or Observations

- Prepare job descriptions

- Maintain and update job descriptions and specifications.

Competency based job description

Clic to read  Competency based job description

The nature of jobs and work is changing. The nature of some jobs is shifting to reflect the competitive demands faced by the organization. The individual responses to job also vary. Depending on how the job is designed, they may provide more or less opportunity for employees to satisfy their job-related needs.

Competence is the ability to perform certain actions, a set of features necessary to perform the job. Each of the elements of competence profile refers to a specific dimension of the work, e.g. : Create relationships - the ability to develop and maintain relationships (the ability to talk with different people, creating professional relationships). For an assignment and examples of competency descriptions please see the attached slides.

 Recruitment and selection

Recruitment and selection process

Clic to read  Recruitment and selection process

The recruitment and selection process consists of several steps: identification of requirements, attracting applicants, creating a shortlist, applying selection process and preparing an offer.

Employer branding

Clic to read  Employer branding

Each organization strives to become an employer of preferred choice. It means that, through its successful marketing of the organization, the development of challenging and supportive working environments, and the opportunity to enjoy good reward packages, applicants are attracted to the prospect of being empowered by the organization. As consequence, there is a natural flow of predominantly high-calibre people towards these organizations, which has the effect of reducing the time and costs of recruitment.

In order to attract applicants firms create their employer brands. Employer brand is a set of attributes and qualities – often intangible – that makes an organization distinctive, promises a particular kind of employment experience, and appeals to those people who will thrive and perform to their best in its culture.  (CIPD, 2007). Employer brand offers a value proposition for employees. It is aimed at differentiating and promoting the employer’s offer to attract new employees and maintain current employees.

Recruitment methods

Clic to read  Recruitment methods

Organizations can adopt different recruitment methods. Organization may offer the job at the internal or external labour market. In the recent years the internet has radically shifted the process of attracting applicants. Its use has increased both in terms of the application of corporate web sites for recruitment purposes, and firms web sites featuring vacancies. It provides organizations with a highly cost effective and efficient means of reaching applicants on a global basis, reducing traditional job adverts cost for their web-based counterparts. Also social networking sites grown rapidly in popularity and there are an array of sites competing for members from more formal sites encouraging business networking such as Linkedln to more informal sites such as Twitter or Facebook.

Recruiting evaluation criteria: Quantity of applications, quality of applications (is recruiting providing qualified applicants with an appropriate skills), cost per applicant hired, time required to fill openings.

Selection methods

Clic to read  Selection methods

Assessing the suitability of applicants at each stage of selection, starting from reviewing application documents (e.g. CVs), to evaluating psychometric test result and rating performance in interviews, is central to the process of hiring the right kind of people.  Selection process involves the use of techniques and tools that are designed to choose between shortlisted applicants, using legal, relevant and predictive criteria.

- Application screening requires dividing the applications into three groups: A - of high quality, these candidates organization should invite to interview; B - of moderated quality, these candidates organization may consider to invite; C - of low quality - these candidates are likely to be rejected.

- Selection interviews are the most widely used method of selecting candidates in interviewing. From employer point of view interviews provide an opportunity to learn more about a candidate and assess the knowledge skills and experience described in the application in more detail, but they also offer a chance to provide insight into the role and the organization and to sell the benefits of the organization to candidates. It is two-way process of exchanging information. For more details please go to the ppt presentation.

- Selection testing can be of great benefit in the selection process when properly used and administrated. However any use of a test must be shown to be valid. Validity is the extent to which a test actually measures what it says it measures. For more details please go to the ppt presentation.

- Assessment centre is a comprehensive method of staff selection, which focuses on assessing the competence of candidates. It is active method of evaluation of candidates by the experts (assessors) under conditions similar to those that candidates meet at the workplace in order to identify their skills and behaviors. A multi-dimensional evaluation process of competence. AC is one of the most advanced, but also labor-intensive methods to assess the competence of the employees. Due to the high investment, this method is most often used by large companies, as a tool to select candidates for key positions as well as a tool for analysis and development of competence (Development Centre, DC). For more details please go to the ppt presentation.

 Training and development

Training cycle

Clic to read  Training cycle

The whole process begins with the analysis of training needs, which serves to examine what training, when and for whom is necessary. This stage should ensure that the training is tailored to the real needs of the organization and its employees. The next stage is the designing of trainings, which is based on the goal of the training, selection of the relevant content of the training program as well as the selection of the appropriate form of training and a trainer. The third stage of the training cycle is training delivery and finally evaluation of the training outcomes.

a)    Analysis of training needs: Assess what your employees need to know in order to successfully do their jobs. You can ask questions: what knowledge, skills and attitudes are needed in your firm? Who needs the training? What would be the most efficient way to learn these?
b)    Design: Determine what your on-the-job training program will look like.
c)    Delivery: Decide who/when/how you will implement your training program.
d)    Evaluation: Get feedback so you can know if your training met you and your employees needs.

The development of employees in craft organizations has its own specifics. Key training is offered to key and most talented employees, which can be costly. However, development of other employees will use practical and cost-efficient training techniques based on the “on the job trainings” such as mentoring, shadowing, instruction, etc. Because of the limited personnel and financial resources of many SMEs, a new role of  "tutor" or a "master" is an interesting solution for implementing a continuous and ongoing practice of HR and skills development policies in art and craft firms.

Training methods

Clic to read  Training methods

Employee development techniques can be divided into those taking place in the workplace – on the job - and outside the workplace – off the job trainings. On the job trainings are often less expensive and very practical. In turn, off the job trainings give the opportunity to obtain new competencies, to encounter new trends and it does not disrupt the normal operation. However, they are usually more expensive, it is not directly in the context of the job, it is often formal and may not be based on experience.

Table.1. Examples of various training methods
On the job trainings   
Coaching, mentoring, shadowing,  demonstrations, job-rotations,  job instruction technology, apprenticeship, understudy, computer-based training,    
Off the job trainings
Lectures, seminars, conferences, vestibule training, simulation excercises such as: management, games, case studies, role playing), sensitivity training, computer-based training,

In business the blended learning approach is gaining more popularity as it means using more than one training method to train on one subject. Some of the most useful methods in small art and craft firms are described below.

Job shadowing - one employee shows another employee all the aspects of their job. The job shadower learns by observing and by instruction. It is well adapted for integrating and training new employees in a company, or somebody without previous practical experience of the job.
Job rotation - is the process of training employees by rotating them through a series of related jobs. Rotation makes a person well acquainted with different jobs and alleviates boredom but it must be logical.

Job instructional technique (JIT) - is a step by step (structured) on the job training method in which a suitable trainer (a) prepares a trainee with an overview of the job, its purpose, and the results desired, (b) demonstrates the task or the skill to the trainee, (c) allows the trainee to show the demonstration on his or her own, and (d) follows up to provide feedback and help. The trainees are presented the learning material in written or by learning machines through a series called "frames".

Apprenticeship - is a system of training a new generation of practitioners of a skill. This method of training is in vogue in those trades and crafts fields in which a long period is required for gaining proficiency. The trainees serve as apprentices to experts for long periods. They have to work in direct association with and also under the direct supervision of their masters.

Coaching - in coaching, fundamentally, the coach is helping the individual to improve their own performance: in other words, helping them to learn. Good coaches believe that the individual always has the answer to their own problems but understands that they may need help to find the answer. It is usually useful when developing leadership skills.
New forms of training such as e-learning, open and distant learning or the support of external coaches have helped many SMEs to face new challenges. Both non-formal and informal training are very common in micro and small enterprises, where many employers see it as the best form of specific training available - it is easily taught, highly specific, can be applied at the exact time and place needed.

Evaluation of a training

Clic to read  Evaluation of a training

The evaluation of the training program is important as it helps to assess if the goals of the trainings were achieved and what in fact is the value of the training. For the employer evaluation of training and development means assessment of the impact of training on trainee’s performance and behavior. Desired employee behavior and better performance will result in higher quality of product or service and finally in profits. However, it is important to assess the value of the program not only to the employer but also to the employees. This can be assessed by satisfaction of the employees.

The most popular evaluation framework was proposed consists of four steps (according to Kirkpatrick):
-    Reaction would evaluate how participants feel about the program they attended.
-    Learning would evaluate the extent to which the trainees learned the information and skills.
-    Behavior, which would evaluate the extent to which their job behavior had positively changed as a result of attending the training.
-    Results would evaluate the extent to which the results have been affected by the training program.

 Performance management

Importance of performance management

Clic to read  Importance of performance management

Performance management can be understood as a set of practices through which work is defined and reviewed, capabilities are developed and rewards are distributed. Other words, it is a framework in which performance by individuals can be directed, monitored, motivated and improved (Mabey, 1998). And what is performance? Performance is expressing the relationship between a person’s capabilities and what the person actually achieves, usually related to a person’s job.

Performance management plays strategic role in a firm management as it enhances employee motivation and productivity of individuals, teams and the whole firm. What is more, it helps in strategic planning and change by detecting problems and employee performance evaluation. Evaluating performance and providing feedback to the employees is also useful in analysing the competence gap and employee development. Performance evaluation supposed to be ongoing process that will help the firm in the process of continuous improvement.  

Although performance management system needs to be developed for specific firm, some guidelines may be useful for each organization:

-    Performance assessment should be provided together with a feedback based on credible sources
-    Feedback should be provided as soon as possible after the event to be benefit
-    Performance measures should be based on clear, reliable goals
-    The process should involve a dialogue between the employee and a manager and be focus on the future. 

Performance appraisal

Clic to read  Performance appraisal

Performance appraisal is usually a part of performance management. Performance appraisal is interpreted as evaluating performance of each employee, measured against the performance standards or objectives established for his or her job. Performance appraisal is usually based on the judgments and opinions of supervisor, peers and subordinates. 

1.    Performance appraisal may be formal or informal – as it is in micro and small firms, however it needs to ensure some legal standards:
2.    – must be nondiscriminatory 
3.    – must be job related
4.    - must be fair.

In order to ensure such standards, it is important to choose appropriate evaluation criteria.

Valid performance criteria

Clic to read  Valid performance criteria

One of the key questions is what to measure? Choosing valid performance criteria is one of the most important aspect of effective performance assessment.
In most performance systems the assessment criteria are divided into following groups:

-    Objective results that can be qualitative and quantitative (e.g. targets, numbers of clients, achievement of goals)
-    Behaviors (focus on how the work is performed, what the employee does or does not, e.g. is late for work)
-    Personal traits (such as loyalty, engagement – are difficult to measure)
-    Multiple criteria: all above and various aspects of the job.

When assessing teams you can use following assessment criteria:

-    Task completion (accuracy, speed, costs, creativity)
-    Team development (cohesiveness, flexibility, preparedness for new tasks)
-    Stakeholders (customer satisfaction, customer loyalty, employee’s satisfaction)

Assessment 360 degrees

Clic to read  Assessment 360 degrees

Assessmet 360 degrees is a process through which feedback from an employees subordinates, colleagues, and supervisor(s), as well as a self-evaluation by the employee themselves is gathered. Such feedback can also include feedback from external stakeholders who interact with the employee, such as customers and suppliers. Organizations have most commonly utilized 360-degree feedback for developmental purposes, providing it to employees to assist them in developing work skills and behaviors.


Reward system

Clic to read  Reward system

Reward system consists of the rewards strategy (main goals of the system and the way how the employer is going to achieve these goals using rewarding instruments), procedures (e.g. procedures of distribution of variable pay) and the proper tools of the systems (base pay, benefits etc.). The main goals of rewards system must be a consequence of the main strategy of the firm and must support the achievement of firms strategical goals.  In small firms reward systems are simplified.

The main goals of rewards are:
-    To attract employees – by competitive pay and attractive benefits
-    To keep best and talented employees in a firm (to build their loyalty through the development opportunities)
-    To motivate employees (to take new challenges, to achieve their goals and to improve their performance)
-    To develop employees skills that are important for the future firms development.

The internal structure of compensation usually consists of direct and indirect compensation. Base pay and variable pay are the most common forms of direct compensation. Indirect compensation consists of employee benefits that are also simplified and limited in a small business.

Base pay is the basic compensation that an employee receives. Usually a wage or a salary is called base pay. There are two base pay categories: hourly and salaried depending on the way it is distributed. Sometimes employers reward competencies which is called a competency-based pay or a skill-based pay, where employees start at a base pay and then receive increases as they learn to do other jobs or gain new skills.

The best way to establish the base pay is to provide job evaluation and pay survey. This will ensure that the base pay system is both internally equitable and externally competitive as these are important aspects of pay equity perceived by employees. 

Variable pay is reward linked to individual, team and/or organizational performance, also known as incentives. The variable pay is based on assumptions that:
-    some people and jobs contribute more to the organizational success that others
-    some people perform better than others and should receive more compensation.

Benefit is indirect rewards (is non-financial) that is given to an employee or a group of employees as a part of organizational membership. Sometimes employers offer a flexible benefits plan called cafeteria plan that allows employees to select the benefits they prefer from a group of established benefits.

The employer may provide employee benefits, especially health and welfare benefits and retirement plans if these are not provided by the government. A healthy and safe work environment might be extended to work-life programs, such as paid time off (e.g., maternity/paternity leave, sabbaticals), workplace flexibility (flexible work schedules, teleworking, job sharing, etc.) health and wellness benefits (e.g., employee assistance programs, outcomes-based wellness programs, stress management programs, health coaching, caring for dependents programs (resources and referrals for child care/elder care, child-care spending accounts, subsidies and vouchers, special needs care,

Reward systems must always comply with the legal constraints on every country or EU such as minimum wage standards or hours of work. Another important issue is equal pay which is described in the next part of this material.

Total rewards

Clic to read  Total rewards

When designing a reward system, employers may consider a broader perspective regarding total rewards. They must build a fully integrated strategy that leverages total rewards and uses incentive programs for employee engagement, as well as ensuring that all facets of compensation are optimized to motivate the workforce and help the company to thrive. It should be considered not only in terms of proper design, convergences with strategic goals, or economic rationality, but also in terms of external competitiveness, achievement of objectives of the firm, and benefits it brings to all stakeholders.

Many organizations tend to focus on total rewards strategies that underline the importance of both financial and non-financial rewards and help build a supportive environment and development opportunities for employees. Generally, the reward package is divided on two main areas: transaction rewards (transactional - tangible rewards) and non-financial rewards (relational - non-financial/intrinsic rewards). The first one includes: base pay, variable pay (bonuses, other incentives) and employee benefits. Whereas the second one, which is called relational or intangible rewards authors distinguished mainly on broad opportunities to development and supportive or positive work environment (Armstrong & Cummins, 2011).

Both of these dimensions are critical for employees and have a strong impact on their satisfaction, commitment, life condition and performance. When motivating, employers focus mainly on the financial aspects of motivation (especially in small business) whereas research shows that for most employees non-financial rewards are key. Especially for young Gen Y - employees entering the labor market, supportive environment, including such aspects as the working atmosphere, security, management style, relationships at work and the balance between work and personal life are crucial. It can be said that high quality of the working environment is nowadays one of the most important factors in attracting the best employees to the company. Therefore it is essencial to create supportive work environment to attract, engage and then retain talent in the company.

Evaluation of the rewards

Clic to read  Evaluation of the rewards

Effective reward systems and employees satisfaction constitute two of the most important factors in terms of achieving business goals.  Effective rewards systems help to attract and retain talented employees and create desired employees’ behavior.

Systematically evaluating reward strategies, programmes and policies is important because rewards often represent the largest cost of doing business and therefore can have serious negative repercussions if these rewards do not attract, retain and motivate that talent required to operate competitively. A framework for effectively evaluating reward programmes is proposed which includes:
-    employee perceptions, understanding and behaviour;
-    financial and operational impact (e.g., benchmarking, cost, ROI);
-    administrative efficiency and effectiveness;
-    social responsibility and sustainability consideration.

Although employee satisfaction with reward system – both the tangible and intangible rewards – is one of the most important measure of effective rewards. Among the most value benefits resulting from employee satisfaction with the reward system are: positive attitudes toward work, low turnover, loyalty, cooperation, and commitment - all correlated with better employee performance.

When talking about effective rewards in the context of employee perception most often equity and transparency in mentioned. 

Equitable rewards are understood as fair rewards programs that are compliant with societal norms (social justice), and do not encourage employees to participate in unethical or illegal behavior. Unfortunately, fairness is difficult to define and is often in the eye of the beholder.

Rewards transparency (depending on the country transparency may be differently understood, but most often this is the transparency of the system) influences employee understanding of strategies, policies, and programs and may enhance attitudinal and behavioural outcomes. Rewards transparency demonstrates to employees that their pay is fair, at least within the context of firm policies and government regulations.
Satisfaction with the reward systems produces desired employee behaviors that, in turn, may produce high quality of service as well as financial benefits to the organization.
Another aspect of employee satisfaction is the Work-life balance, which is also  an important aspect of a healthy work environment. Maintaining work-life balance helps reduce stress and prevent burnout in the workplace. Stress is one of the most common health issues in the workplace and can lead to physical consequences such as hypertension, digestive troubles, chronic aches and pains and heart problems. With the millennial generation of workers (projected to take up 75% of the workforce by 2025) many leaders think it’s time to redefine what work-life balance looks like.

Team incentives

Clic to read  Team incentives

The growing use of work teams in firms has implications for rewards. Why it is important to use the team incentives? There are many benefits of such a form of reward.

Team incentives may:
-    Enhances productivity
-    Ties earning to team performance
-    Improves quality
-    Aids recruiting and retention of employees
-    Improves employee morale. 

Despite the growing number of team work in organizations the question of how to equitable reward the team members remains open.

Most team based organizations continue to pay employees based either on job performance of the individuals or on the employees’ competencies. When distributing the team rewards there are two main ways:
-    Same-size reward for each team member
-    Different-size reward for each team member (which can vary depending on: contribution to the team results, current pay, years of experience, skill levels).

Team incentives seems to work best when the following criteria are present:
-    Significant interdependence exists among the work of several individuals, and teamwork is essential
-    Difficulties exists in identifying exactly why is responsible for differing levels of performance
-    Management wants to create or reinforce teamwork and cooperation among employees
-    Rewards are seen as being allocated fairly.



Armstrong M, Cummis A., (2011), The reward management toolkit: Kogan Page, London.
Banfield, P., & Kay, R. (2012). Introduction to human resource management. New York: Oxford University Press.
Boyatzis, R. E. (1982). The Competent Manager: A Model for Effective Performance, New York: John Wiley and Sons
Mathis R. L and Jackson J.J (1997) Human Resource Management, West Publishing Company
Ostrowsky B, Kolomitro K., Lam T. (2014) Training Methods: a review analysis, Human Resources Development,

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