PART III: Organizing 6

Learning Outcomes After this class, I will be able to:

1. Describe the human resource management process.

1. Describe the human resource management process.

2. Identify the influence of government regulations on human resource decisions.

2. Identify the influence of government regulations on human resource decisions.

3. Differentiate between job descriptions and job specifications .

3. Differentiate between job descriptions and job specifications .

4. Contrast recruitment and downsizing options.

4. Contrast recruitment and downsizing options.

5. Explain the importance of validity and reliability in selection.

5. Explain the importance of validity and reliability in selection.

6. Describe the selection devices that work best with various kinds of jobs.

6. Describe the selection devices that work best with various kinds of jobs.

7. Identify various training methods.

7. Identify various training methods.

8. Explain the various techniques managers can use in evaluating employee performance.

8. Explain the various techniques managers can use in evaluating employee performance.

9. Describe the goals of compensation administration and factors that affect wage structures.

9. Describe the goals of compensation administration and factors that affect wage structures.

10. Explain what is meant by the terms sexual harassment, labor–management cooperation, workplace violence, and layoff-survivor sickness .

10. Explain what is meant by the terms sexual harassment, labor–management cooperation, workplace violence, and layoff-survivor sickness .

11. Describe what is meant by the term organization culture .

11. Describe what is meant by the term organization culture .

Human Resources Management (HRM) The management function that is concerned with getting, training, motivating, and keeping competent employees. Balancing the supply of employees with the demand for employees. Matching the talents and skills of employees with those required by the organization. Creating a working environment that fosters high employee performance. Meeting the pay and benefits needs of employees.

The management function that is concerned with getting, training, motivating, and keeping competent employees.

Balancing the supply of employees with the demand for employees.

Matching the talents and skills of employees with those required by the organization.

Creating a working environment that fosters high employee performance.

Meeting the pay and benefits needs of employees.

The Strategic Human Resources Management Process Exhibit 6.1

The Legal Environment Of HRM The impact of federal, state and local laws on HRM practices Affirmative action programs Programs that ensure that decisions and practices enhance the employment, upgrading, and retention of members of protected groups

The impact of federal, state and local laws on HRM practices

Affirmative action programs

Programs that ensure that decisions and practices enhance the employment, upgrading, and retention of members of protected groups

Major U.S. Federal Laws and Regulations Related to HRM YEAR LAW OR REGULATION 1963 Equal Pay Act 1964 Civil Rights Act, Title VII (amended in 1972) 1967 Age Discrimination in Employment Act (amended in 1978) 1973 Vocational Rehabilitation Act 1974 Privacy Act 1978 Pregnancy Discrimination Act, Title VII 1978 Mandatory Retirement Act 1986 Immigration Reform and Control Act 1988 Polygraph Protection Act 1988 Worker Adjustment and Retraining Notification Act 1990 Americans with Disabilities Act 1991 Civil Rights Act 1993 Family and Medical Leave Act 2002 Sarbanes-Oxley Act Exhibit 6.2

The Legal Environment Of HRM (cont’d) The globalization of business HR practices and the laws of other countries that differ from the U.S. Work councils Nominated or elected employees who must be consulted when management makes decisions involving personnel Board representatives Employees who sit on a company’s board of directors and represent the interests of employees

The globalization of business

HR practices and the laws of other countries that differ from the U.S.

Work councils

Nominated or elected employees who must be consulted when management makes decisions involving personnel

Board representatives

Employees who sit on a company’s board of directors and represent the interests of employees

Employment Planning Employment planning The process by which management ensures it has the right number and kinds of people in the right places at the right time, who are capable of helping the organization achieve its goals Steps in the planning process: Assessing current human resources. Assessing future human resources needs and developing a program to meet those needs.

Employment planning

The process by which management ensures it has the right number and kinds of people in the right places at the right time, who are capable of helping the organization achieve its goals

Steps in the planning process:

Assessing current human resources.

Assessing future human resources needs and developing a program to meet those needs.

Employee Assessment Human resource inventory report A report listing the name, education, training, prior employer, languages spoken, and other information about each employee in the organization Job analysis An assessment of the kinds of skills, knowledge, and abilities needed to successfully perform each job in an organization

Human resource inventory report

A report listing the name, education, training, prior employer, languages spoken, and other information about each employee in the organization

Job analysis

An assessment of the kinds of skills, knowledge, and abilities needed to successfully perform each job in an organization

Job Analysis Components Job description A written statement of what a job holder does, how it is done, and why it is done Tasks, duties and responsibilities that the job entails Job specification A statement of the minimum acceptable qualifications that an incumbent must possess to perform a given job successfully Knowledge, skills, and abilities required of the job holder

Job description

A written statement of what a job holder does, how it is done, and why it is done

Tasks, duties and responsibilities that the job entails

Job specification

A statement of the minimum acceptable qualifications that an incumbent must possess to perform a given job successfully

Knowledge, skills, and abilities required of the job holder

Recruitment And Selection Recruitment The process of locating, identifying, and attracting capable applicants Selection process The process of screening job applicants to ensure that the most appropriate candidates are hired

Recruitment

The process of locating, identifying, and attracting capable applicants

Selection process

The process of screening job applicants to ensure that the most appropriate candidates are hired

Traditional Recruiting Sources Internal searches Advertisements Employee referrals Public employment agencies Private employment agencies School placement Temporary help services Employee leasing and independent contractors Exhibit 6.3

Internal searches

Advertisements

Employee referrals

Public employment agencies

Private employment agencies

School placement

Temporary help services

Employee leasing and independent contractors

Downsizing Options Firing Layoffs Attrition Transfers Reduced workweeks Early retirements Job sharing Exhibit 6.4

Firing

Layoffs

Attrition

Transfers

Reduced workweeks

Early retirements

Job sharing

Selection Decision Outcomes Exhibit 6.5

Selection Terms Reliability The degree to which a selection device measures the same thing consistently (stability) Example: an individual consistently achieves nearly identical scores on the same exam. Validity The proven relationship between a selection device and some relevant criterion (a measure of job success) Example: superior job performance and high employment test scores

Reliability

The degree to which a selection device measures the same thing consistently (stability)

Example: an individual consistently achieves nearly identical scores on the same exam.

Validity

The proven relationship between a selection device and some relevant criterion (a measure of job success)

Example: superior job performance and high employment test scores

Selection Devices Written tests Intelligence, aptitude, ability, and interest test batteries Performance-simulation tests Selection devices that are based on actual job behaviors; work sampling and assessment centers Interviews Effective if conducted correctly Realistic job preview (RJP) Providing positive and negative information about the job and the company during the job interview

Written tests

Intelligence, aptitude, ability, and interest test batteries

Performance-simulation tests

Selection devices that are based on actual job behaviors; work sampling and assessment centers

Interviews

Effective if conducted correctly

Realistic job preview (RJP)

Providing positive and negative information about the job and the company during the job interview

Potential Biases in Interviews Prior knowledge about the applicant will bias the interviewer’s evaluation. The interviewer tends to hold a stereotype of what represents a good applicant. The interviewer tends to favor applicants who share his or her own attitudes. The order in which applicants are interviewed will influence evaluations. The order in which information is elicited during the interview will influence evaluations.

Prior knowledge about the applicant will bias the interviewer’s evaluation.

The interviewer tends to hold a stereotype of what represents a good applicant.

The interviewer tends to favor applicants who share his or her own attitudes.

The order in which applicants are interviewed will influence evaluations.

The order in which information is elicited during the interview will influence evaluations.

Potential Biases in Interviews (cont’d) Negative information is given unduly high weight. The interviewer may make a decision concerning the applicant’s suitability within the first four or five minutes of the interview. The interviewer may forget much of the interview’s content within minutes after its conclusion. The interview is most valid in determining an applicant’s intelligence, level of motivation, and interpersonal skills. Structured and well-organized interviews are more reliable than unstructured and unorganized ones.

Negative information is given unduly high weight.

The interviewer may make a decision concerning the applicant’s suitability within the first four or five minutes of the interview.

The interviewer may forget much of the interview’s content within minutes after its conclusion.

The interview is most valid in determining an applicant’s intelligence, level of motivation, and interpersonal skills.

Structured and well-organized interviews are more reliable than unstructured and unorganized ones.

Making Interviews More Effective Behavioral (Situation) Interview An interview in which candidates are observed not only for what they say, but how behave to determine how they might behave under stress. Candidates are presented a complex situation and asked to “deal with” it. Research indicates that behavioral interviews are nearly eight times more effective than other interview formats.

Behavioral (Situation) Interview

An interview in which candidates are observed not only for what they say, but how behave to determine how they might behave under stress.

Candidates are presented a complex situation and asked to “deal with” it.

Research indicates that behavioral interviews are nearly eight times more effective than other interview formats.

Introducing Employee to the Organization Employee Orientation The introduction of a new employee to the job and the organization Objectives of orientation To reduce the initial anxiety all new employees feel as they begin a new job To familiarize new employees with the job, the work unit, and the organization as a whole To facilitate the outsider–insider transition

Employee Orientation

The introduction of a new employee to the job and the organization

Objectives of orientation

To reduce the initial anxiety all new employees feel as they begin a new job

To familiarize new employees with the job, the work unit, and the organization as a whole

To facilitate the outsider–insider transition

Training Employee training A learning experience in that it seeks a relatively permanent change in employees such that their ability to perform on the job improves. Changing skills, knowledge, attitudes, or behavior Changing what employees know, how they work; or their attitudes toward their jobs, co-workers, managers, and the organization

Employee training

A learning experience in that it seeks a relatively permanent change in employees such that their ability to perform on the job improves.

Changing skills, knowledge, attitudes, or behavior

Changing what employees know, how they work; or their attitudes toward their jobs, co-workers, managers, and the organization

Determining if Training Is Needed Exhibit 6.6

Typical Training Methods On-the-Job Training Methods Job rotation Understudy assignments Off-the-Job Training Methods Classroom lectures Films and videos Simulation exercises Vestibule training Exhibit 6.7

On-the-Job Training Methods

Job rotation

Understudy assignments

Off-the-Job Training Methods

Classroom lectures

Films and videos

Simulation exercises

Vestibule training

Performance Management Performance management system A process of establishing performance standards and evaluating performance in order to arrive at objective human resource decisions and to provide documentation to support personnel actions

Performance management system

A process of establishing performance standards and evaluating performance in order to arrive at objective human resource decisions and to provide documentation to support personnel actions

Other Appraisal Methods Adjective rating scales Rating an individual on each job performance factor on an incremental scale. 360-degree appraisal An appraisal device that seeks feedback from a variety of sources for the person being rated.

Adjective rating scales

Rating an individual on each job performance factor on an incremental scale.

360-degree appraisal

An appraisal device that seeks feedback from a variety of sources for the person being rated.

Direct Comparison Methods Group-order ranking Requires the evaluator to place employees into a particular classification such as “top fifth” or “second fifth.” Individual ranking approach Requires the evaluator merely to list the employees in order from highest to lowest.

Group-order ranking

Requires the evaluator to place employees into a particular classification such as “top fifth” or “second fifth.”

Individual ranking approach

Requires the evaluator merely to list the employees in order from highest to lowest.

Direct Comparison Methods (cont’d) Paired comparison approach Each employee is compared with every other employee in the comparison group and rated as either the superior or weaker member of the pair. Each employee is assigned a summary ranking based on the number of superior scores achieved. MBO Employees are evaluated by how well they accomplish a specific set of objectives determined to be critical in the successful completion of their jobs.

Paired comparison approach

Each employee is compared with every other employee in the comparison group and rated as either the superior or weaker member of the pair.

Each employee is assigned a summary ranking based on the number of superior scores achieved.

MBO

Employees are evaluated by how well they accomplish a specific set of objectives determined to be critical in the successful completion of their jobs.

Performance Appraisal Methods METHOD ADVANTAGE DISADVANTAGE Written essay Simple to use More a measure of evaluator’s writing ability than of employee’s actual performance Critical incidents Rich examples Time-consuming; lack behaviorally based quantification Graphic rating Provide quantitative Do not provide depth of job scales data; less time- behavior assessed consuming than others BARS Focus on specific Time-consuming; difficult to and measurable job develop measures behaviors Multiperson Compares employees Unwieldy with large number of with one another MBO Focuses on end goals; Time-consuming results oriented 360°Appraisal More thorough Time-consuming Exhibit 6.8

When Performance Falls Short Performance impediments Mismatched skills Inadequate training Employee’s personal problems Discipline Actions taken by a manager to enforce an organization’s standards and regulations Employee counseling A process designed to help employees overcome performance-related problems

Performance impediments

Mismatched skills

Inadequate training

Employee’s personal problems

Discipline

Actions taken by a manager to enforce an organization’s standards and regulations

Employee counseling

A process designed to help employees overcome performance-related problems

Performance Matters Source: Dilbert reprinted by permission of United Features Syndicate, Inc. Exhibit 6.9

Compensation And Benefits Compensation administration Determining a cost-effective pay structure that will attract and retain competent employees, provide an incentive for them to work hard, and ensure that pay levels will be perceived as fair. Factors influencing pay levels Employee’s job Kind of business Environment surrounding the job Geographic location Employee performance levels and seniority.

Compensation administration

Determining a cost-effective pay structure that will attract and retain competent employees, provide an incentive for them to work hard, and ensure that pay levels will be perceived as fair.

Factors influencing pay levels

Employee’s job

Kind of business

Environment surrounding the job

Geographic location

Employee performance levels and seniority.

Benefits Employee benefits Nonfinancial rewards designed to enrich employees’ lives Types of benefits Social Security Workers’ and unemployment compensations Paid time off from work Life and disability insurance Retirement programs health insurance

Employee benefits

Nonfinancial rewards designed to enrich employees’ lives

Types of benefits

Social Security

Workers’ and unemployment compensations

Paid time off from work

Life and disability insurance

Retirement programs

health insurance

Workforce Diversity Improving workforce diversity: Widen the recruiting net to broaden the pool of applicants. Ensure the selection process is nondiscriminatory Assist new employees in assimilating into the firm’s culture. Conduct specialized orientations and workshops for new employees

Improving workforce diversity:

Widen the recruiting net to broaden the pool of applicants.

Ensure the selection process is nondiscriminatory

Assist new employees in assimilating into the firm’s culture.

Conduct specialized orientations and workshops for new employees

Sexual Harassment Sexual harassment Sexually suggestive remarks, unwanted touching and sexual advances, requests for sexual favors, or other verbal and physical conduct of a sexual nature Creates an intimidating, offensive, or hostile environment; Unreasonably interferes with an individual’s work; or Adversely affects an employee’s employment opportunities.

Sexual harassment

Sexually suggestive remarks, unwanted touching and sexual advances, requests for sexual favors, or other verbal and physical conduct of a sexual nature

Creates an intimidating, offensive, or hostile environment;

Unreasonably interferes with an individual’s work; or

Adversely affects an employee’s employment opportunities.

Sexual Harassment (cont’d) Hostile (or offensive) environment Meritor Savings Bank v. Vincent Organization can be held liable for harassment Harassing act (not subsequent outcome) is deciding factor Protecting the organization Educating employees about sexual harassment Having a sexual harassment policy in place that is enforced fairly Taking action on the first instance of a sexual harassment complaint

Hostile (or offensive) environment

Meritor Savings Bank v. Vincent

Organization can be held liable for harassment

Harassing act (not subsequent outcome) is deciding factor

Protecting the organization

Educating employees about sexual harassment

Having a sexual harassment policy in place that is enforced fairly

Taking action on the first instance of a sexual harassment complaint

Labor Relations and Unions Labor–management cooperation Involves mutual efforts on the part of a labor union and the management of an organization. Successful efforts to increase productivity, improve quality, and lower costs require employee involvement and commitment. Labor unions have come to recognize that they can help their members more by cooperating with management than fighting it.

Labor–management cooperation

Involves mutual efforts on the part of a labor union and the management of an organization.

Successful efforts to increase productivity, improve quality, and lower costs require employee involvement and commitment.

Labor unions have come to recognize that they can help their members more by cooperating with management than fighting it.

Violence in the Workplace Workplace violence The increase in violent crimes being committed at the work site. Preventing violence in the workplace Training supervisory personnel to identify troubled employees before the problem results in violence. Designing employee assistance programs (EAPs) specifically to help individuals in need. Implementing stronger security mechanisms. Preventing violence paraphernalia from entering facilities altogether.

Workplace violence

The increase in violent crimes being committed at the work site.

Preventing violence in the workplace

Training supervisory personnel to identify troubled employees before the problem results in violence.

Designing employee assistance programs (EAPs) specifically to help individuals in need.

Implementing stronger security mechanisms.

Preventing violence paraphernalia from entering facilities altogether.

Layoffs and Downsizing Layoff-survivor sickness The set of attitudes, perceptions, and behaviors of employees who remain after involuntary staff reductions Dealing with the “Survivor Syndrome” Provide opportunities for employees to talk to counselors about their guilt, anger, and anxiety. Provide group discussions for the survivors to vent their feelings. Implement employee participation programs such as empowerment and self-managed work teams.

Layoff-survivor sickness

The set of attitudes, perceptions, and behaviors of employees who remain after involuntary staff reductions

Dealing with the “Survivor Syndrome”

Provide opportunities for employees to talk to counselors about their guilt, anger, and anxiety.

Provide group discussions for the survivors to vent their feelings.

Implement employee participation programs such as empowerment and self-managed work teams.