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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance requires people to be present at their place of work Absence has always been a concern of employers Methods for reducing absence have frequently focused on disciplinary or punitive measures Companies are not looking at promoting attendance and rehabilitating employees

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

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Page 1: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.1

Reducing Absence: a Viewpoint

• Optimum performance requires people to be present at their place of work

• Absence has always been a concern of employers

• Methods for reducing absence have frequently focused on disciplinary or punitive measures

• Companies are not looking at promoting attendance and rehabilitating employees

Page 2: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.2

Absence Trends (1 of 2)

CIPD 2003 – 9 days absence per employee per

year

This is a reduction on previous year

CBI 2003 – 6.8 days lost per person per year

Page 3: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.3

Absence Trends (2 of 2)

Absence is higher in larger organisations

Public sector absence is usually higher than that in private sector

Some industrial sectors report higher absence than others

Page 4: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.4

Cost of Absence

CIPD Survey – organisations felt absence to be a

considerable cost but less than half measured the cost

Measurement of cost difficult – needs to include direct and indirect costs

Employment Studies Inst – suggest that there is virtually no robust data on direct and indirect costs of absence

Page 5: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.5

Long Term Sickness Costs

Bevan reports that long-term sickness costs account for between 30 and 70% of absence costs

Companies are not that equipped to measure this accurately

Page 6: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.6

Growing Importance of Absence

Statutory Sick Pay (SSP) changes in 1994 –

burden passed to employer

Disability Discrimination Act 1995 – employers need to provide reasonable adjustments to enable disabled (including long-term sick) to continue in employment

Page 7: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.7

Causes of Absence

• Minor illnesses

• Back pain for manual workers• Stress for non-manual workers

Page 8: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.8 Model of Attendance

Figure 15.1  The Rhodes and Steers process model of attendance (Source: S. Rhodes and R. Steers (1990) Managing Employee Absenteeism, Reading, Mass.: Addison Wesley.)

Page 9: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.9

Managing for Attendance

• Policies for managing absence

• Need for consistency in the construction and implementation of absence management policies

• Line Managers must feel some ownership of policy and procedures

Page 10: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.10

Attendance Management Policies

• Causes of absence• Mix of measures to reduce risk of ill health• Measures intended to reduce spells of

absence • Mix of methods to discourage absence and

positively encourage attendance • How each will operate for long-term and short-

term absences

Page 11: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.11

The ALIEDIM Process

• Assess the absence problem• Locate the absence problem• Identify and prioritise absence causes• Evaluate the current absence control methods• Design the absence control programme• Implement the absence control programme• Monitor the effectiveness of the absence

control programme(Huczynski & Fitzpatrick, 1989)

Page 12: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.12

Scoring Absence

Figure 15.2  The Bradford factor formula for scoring absence (Note: The score is usually calculated over a year.)

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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.13

Absence Procedures (1 of 3)

• Maintaining accurate records

• Implementing absence review and trigger points

• Setting absence targets and benchmarks

• Providing training and support to line managers

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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.14

Absence Procedures (2 of 3)

• Clearly communicated absence notification procedures

• Analysis of absence data

• Ongoing contact during absence

• Return to work interviews

Page 15: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.15

Absence Procedures (3 of 3)

• Formal absence reviews• Disciplinary procedures • Communicating absence levels and

performance assessments• Attendance bonus and reward schemes• Changes to work and work organisation• Occupational health and support

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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.16

Absence Targets

One approach is to tie absence targets to managers performance review and performance payments

Targets need to be carefully used so as not to give the impression that absence is not allowed

Page 17: Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005 Slide 15.1 Reducing Absence: a Viewpoint Optimum performance

Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.17

Ongoing Contact During Absence

• Reduces length of absence

• Demonstrates to employee organisational interest

• Maintain employee motivation

• Can keep them up to date

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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.18

Return to Work Interviews

• Welcome the employee back • Update them on recent events• Check employee well enough to resume duties• Assess any further organisational support

required• Reinforce attendance requirements• Review employee’s absence record

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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.19

Use of Disciplinary Procedures (1 of 2)

• There are occasions when someone is too ill to work and has to be dismissed

• Dismissing someone who is unable to work because of ill health is potentially fair

• A warning must be given that dismissal may occur if employee does not return to work

• Consultation must take place ahead of time to determine a return in foreseeable future

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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.20

Use of Disciplinary Procedures (2 of 2)

• Act on medical advice

• Normally refrain form dismissing sick employee for at least 6 months

• No dismissal should occur if employee falls under definition of ‘disabled’. Dismissal once employer is satisfied that no reasonable adjustments can be made

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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.21

Persistently Short Periods of Absence

• Is there a genuine underlying medical reason?

• Review and where necessary instigate disciplinary action

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Slide 15.22

Summary

• Employee absence incurs costs and lost performance

• Major cause of short-term absence is minor illnesses

• Long-term absence – back pain and stress• Need to understand causes of absence to be

able to remedy them• Attendance management policies can include

a whole range of procedures to measure, record, minimise absences

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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.23

Focus on Skills III: Performance Appraisal

• Not a precise measurement• A subjective assessment is made• History of being damned for its ineffectiveness• People seek information on how they are doing• Is difficult to do and frequently done badly• When done well can be invaluable to the

business

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Slide 15.24

Contrasting Approaches

• Motivation of management control

• Motivation of self development

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Slide 15.25

The Management Control Approach

Is likely to engender:• Conflictual behaviour and attitudes• Negotiated modifications to schemes• Tight bureaucratic controls • Bland, safe statements in appraisal process• Little impact on actual performance• Reduced openness, trust and initiative

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Slide 15.26

The Development Approach

• Develops co-operative behaviour • Confronts issues, seeking resolutions• Does not work well with bureaucratic control• Produces searching analysis directly affecting

performance• Requires high trust

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Slide 15.27

Problems For Those Conducting Appraisals

• Prejudice

• Insufficient knowledge of appraisees

• The halo effect

• Context

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Slide 15.28

Problems For Both Appraisees & Appraisers

• Paperwork

• Formality

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Slide 15.29

Causes of Failure

• Outcomes are ignored

• Everyone is ‘just above average’

• Appraising the wrong features

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Slide 15.30

Appraisal Interview Style

• Problem solving style

• Tell and sell

• Tell and listen

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Slide 15.31

Appraisal Interview Sequence

• Preparation

• Reception

• Setting

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Slide 15.32

Appraisal Interview Structure (1 of 2)

Figure III.1  Structure for a performance appraisal interview

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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.33

Appraisal Interview Structure (2 of 2)

Figure III.1  Structure for a performance appraisal interview

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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.34

Making Appraisal Work

• Ensure all those involved are clear about what system is for

• Visible ownership by senior and line management

• Openness• Participation and involvement• Administered to cause few problems• Supported by follow up action

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Torrington, Hall & Taylor, Human Resource Management 6e, © Pearson Education Limited 2005

Slide 15.35

Summary (1 of 2)

• Performance appraisal has a poor track record

• Performance appraisal has considerable potential when done well

• Several problems including prejudice, halo effect, problems of context

• Three approaches to the appraisal interview

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Slide 15.36

Summary (2 of 2)

• Features of the appraisal interview – opening, factual review, appraisee’s views on performance, appraiser’s views, problem solving, objective setting

• Follow up important

• Training is essential