82 83
how companies work
Human resources
Applications
The curriculum vitae (CV) or résumé is
the essential document, often with
a cover letter. Companies
may use an application
form instead.
Internal search
Looking at internal
resources first creates
opportunities for career
development and
progression, improving
employee engagement
and retention.
External search
Increasingly, companies and
candidates use professional
networking sites such as
LinkedIn and social media
such as Facebook or Twitter.
External candidates diversify
the workforce but cost more
to attract.
Selection
After HR has
drawn up
a shortlist,
candidates are
assessed by
individual face-
to-face interviews,
group assesssment,
and psychometric
testing.
Appointment
Companies may ask for
references and/or request
a medical examination for
the chosen candidate. The
employment offer is a legally
binding contract that sets
out the terms and conditions
of the job.
Personal
recommendation
Some companies
encourage existing
employees to introduce
friends as candidates.
CONTRACT
Psychometric tests Often used
as an initial screening method,
these aim to assess attributes such
as intelligence, aptitude, and type
of personality, using verbal and
non-verbal reasoning tests and
behavior questionnaires.
NEED TO KNOW
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Evaluating performance is good for both
the business and the individual.
How it works
The way in which tasks are done is becoming as
important as what tasks are done, as organizations
recognize the importance of creating the right
culture to enable workers’ performance. For any
company, effective evaluation of the performance
of employees should be strategic and is aimed at
ensuring the maximum productivity of individuals,
teams, and the organization as a whole.
Evaluating staff
For a business to achieve its goals, it needs to
have a process that measures the contribution and
performance of each individual against those goals.
Business goals drive
tasks and activity.
Culture enables teams
and individuals to deliver.
HR policies give clear
benchmarks.
Individual goals
Set personal goals to align
with business strategy
Business
Aligns individual goals with company goals.
Offers consistent approach, with benchmarks.
Continuously enables improvement.
Fosters the right behaviors and relationships.
Individual
Understands what is expected of them.
Has the skills to deliver on these expectations.
Is supported to fill any gaps in capability.
Is given feedback and allowed to discuss goals.
A WIN-WIN SITUATION
Rewards
Promotions and pay
raises in line with
performance
WINNER!
Traditional performance-
management cycle
Performance management is an ongoing,
continuous process. Some companies are now
moving away from traditional performance
management to “crowdsourcing” as a way
for managers to collect, evaluate, and share
information on employee performance.
5
1
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84 85
how companies work
Human resources
Individual goals
Set personal goals to align
with business strategy
Discussion
Ongoing communication on
standards of work and behavior
to improve working relationships
Appraisal
Formal feedback
from the line
manager, with
an opportunity
for individuals
to contribute
Coaching
Feedback on performance to help
individuals work efficiently
360-degree feedback
Gives a rounded picture with
better information about
working relationships
2
3
4
Colleagues
Customer
Manager
Direct
reports
INPUT FROM
COLLEAGUES
Balanced scorecard
Framework to measure
performance against
strategic goals, devised by
Kaplan and Norton
Competencies Defined
behaviors and attributes
that individuals must have to
perform effectively at work
Performance appraisal
Process via which individual
employee and their manager
can discuss performance and
development
NEED TO KNOW
US_084-085_Evaluating_Staff.indd 85 15/12/2014 12:56
84 85
how companies work
Human resources
Individual goals
Set personal goals to align
with business strategy
Discussion
Ongoing communication on
standards of work and behavior
to improve working relationships
Appraisal
Formal feedback
from the line
manager, with
an opportunity
for individuals
to contribute
Coaching
Feedback on performance to help
individuals work efficiently
360-degree feedback
Gives a rounded picture with
better information about
working relationships
2
3
4
Colleagues
Customer
Manager
Direct
reports
INPUT FROM
COLLEAGUES
Balanced scorecard
Framework to measure
performance against
strategic goals, devised by
Kaplan and Norton
Competencies Defined
behaviors and attributes
that individuals must have to
perform effectively at work
Performance appraisal
Process via which individual
employee and their manager
can discuss performance and
development
NEED TO KNOW
US_084-085_Evaluating_Staff.indd 85 15/12/2014 12:56
Motivation
and rewards
Understanding motivation in the workplace
Happy staff work well, and job satisfaction comes from subtle feel-good factors as
much as a paycheck. Employees who enjoy their work tend to stay—job satisfaction
and turnover move in opposite directions.
How it works
In the past, tangible pay and benefits were the key
motivational tools for employees. These financial
rewards are termed extrinsic because they are
external to the actual work and others control the
amount, distribution, and timing. Employers now
recognize that while extrinsic incentives are clearly
important, intrinsic (psychological) rewards are crucial.
People work for money, but they are also motivated by other factors
such as doing a good job and being valued. Non-financial rewards
drive day-to-day motivation more strongly than pay and benefits.
Extrinsic
Policies implemented
by the company:
Financial rewards
Base pay
Bonus
Incentives
Benefits
Pension contributions
Paid holidays/vacation
Health care
Individual
motivation
Employees get
psychological benefits
from doing meaningful
work and performing it
well. Only one in eight
workers—about 180
million employees in
142 countries studied—
are committed to their
jobs and make a
positive contribution
to their organization.
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86 87
how companies work
Human resources
Intrinsic
Feelings that an individual has:
Purpose A sense of
being able to accomplish
something of value
Choice Clear ownership
and feeling responsible
for outcome
Progress As an individual,
feeling and seeing evidence
of moving things forward
Competence Pride and
satisfaction in own work
Fostering intrinsic rewards
Businesses that are successful engender trust
and have employees who are passionate about
what they do. All these factors contribute:
Purpose for organization and individual
Clear vision for organization
Understanding of where individual fits in to
achieve that purpose
Clear goals and expectations for individual
Recognition
Continuous feedback
Ongoing engagement
Non-cash rewards such as praise
Career development
Progression and promotion
Mentoring and coaching
Learning opportunities
Culture
Strong teamwork and consistent behaviors
Open communication
Sharing of knowledge and information
13%
the percentage of
employees who are
fully committed to
their jobs
EXTRINSIC
You are told to do something.
INTRINSIC
You choose to do something.
DEMOTIVATION
MOTIVATION
Do this task and
get a bonus.
Do this task or
get in trouble.
I want to do
this task to make
a difference.
I don’t want to
do this task – it is
pointless.
WHY PEOPLE DO TASKS
Only this
creates positive
motivation
INCREASING MOTIVATION
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86 87
how companies work
Human resources
Intrinsic
Feelings that an individual has:
Purpose A sense of
being able to accomplish
something of value
Choice Clear ownership
and feeling responsible
for outcome
Progress As an individual,
feeling and seeing evidence
of moving things forward
Competence Pride and
satisfaction in own work
Fostering intrinsic rewards
Businesses that are successful engender trust
and have employees who are passionate about
what they do. All these factors contribute:
Purpose for organization and individual
Clear vision for organization
Understanding of where individual fits in to
achieve that purpose
Clear goals and expectations for individual
Recognition
Continuous feedback
Ongoing engagement
Non-cash rewards such as praise
Career development
Progression and promotion
Mentoring and coaching
Learning opportunities
Culture
Strong teamwork and consistent behaviors
Open communication
Sharing of knowledge and information
13%
the percentage of
employees who are
fully committed to
their jobs
EXTRINSIC
You are told to do something.
INTRINSIC
You choose to do something.
DEMOTIVATION
MOTIVATION
Do this task and
get a bonus.
Do this task or
get in trouble.
I want to do
this task to make
a difference.
I don’t want to
do this task – it is
pointless.
WHY PEOPLE DO TASKS
Only this
creates positive
motivation
INCREASING MOTIVATION
US_086-087_Motivation.indd 87 21/11/2014 16:22
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