Chapter 15 Managing Human Resources

Learning Objectives Explain how the management of human resource is both a role for the human resource management department and all managers. Describe the key means by which companies find job candidates. After studying this chapter, you should be able to:

Explain how the management of human resource is both a role for the human resource management department and all managers.

Describe the key means by which companies find job candidates.

Learning Objectives Explain how companies select job candidates. Highlight the keys to effective socialization and training. Describe the common methods of managing performance. After studying this chapter, you should be able to:

Explain how companies select job candidates.

Highlight the keys to effective socialization and training.

Describe the common methods of managing performance.

Learning Objectives Discuss the various compensation and reward systems commonly used. Explain how various laws affect core HR activities After studying this chapter, you should be able to:

Discuss the various compensation and reward systems commonly used.

Explain how various laws affect core HR activities

Strategic Role of HRM Firm’s ability to survive and prosper is increasingly a function of the human resources they have Managers’ career success depends on how well they manager their firm’s resources

Firm’s ability to survive and prosper is increasingly a function of the human resources they have

Managers’ career success depends on how well they manager their firm’s resources

General Framework of HRM Adapted from Exhibit 15.1: General Framework of HRM Environment External Internal Organization Strategy Competitive Advantage Human Resource Management Activities Planning, Job Analysis, Recruiting, Selecting, Socializing and Training, Job Design, Performance Appraisal, Compensation, Development

HRM Activities Two main HRM goals Getting the right people HRM activities must be aligned with corporate strategy Maximizing their performance and potential Failure of either goal can influence the success or failure of the other

Two main HRM goals

Getting the right people

HRM activities must be aligned with corporate strategy

Maximizing their performance and potential

Failure of either goal can influence the success or failure of the other

HRM Activities Planning Forecasting demand Assessing supply Formulating fulfillment plans Job analysis (assessing the job) Getting the Right People Scope and depth of jobs Requisite skills, abilities, and knowledge that people need to perform their jobs successfully Job description Job specification

Planning

Forecasting demand

Assessing supply

Formulating fulfillment plans

Job analysis (assessing the job)

Scope and depth of jobs

Requisite skills, abilities, and knowledge that people need to perform their jobs successfully

Job description

Job specification

HRM Activities Recruiting Job posting Internal recruiting method Job, its pay, level, description, and qualifications are posted or announced to current employees Advertisements Employment agencies Employee referrals School placement centers Internet recruiting Getting the Right People

Recruiting

Job posting

Internal recruiting method

Job, its pay, level, description, and qualifications are posted or announced to current employees

Advertisements

Employment agencies

Employee referrals

School placement centers

Internet recruiting

HRM Activities Selecting valid selection technique Interviews Unstructured Structured Work sampling Assessment centers Getting the Right People Work simulation Written tests Background and reference checks Physical examinations

Selecting

valid selection technique

Interviews

Unstructured

Structured

Work sampling

Assessment centers

Work simulation

Written tests

Background and reference checks

Physical examinations

Plan the interview by reviewing the candidate and the job specifications. Establish rapport with a friendly greeting and start the interview with a nonjob question. Follow structured set of questions. Avoid questions that require or solicit a simple yes or no response. Try not to telegraph, or give cues for, the desired answer. Make sure the candidate has plenty of time to answer—do not monopolize the conversation. Listen carefully and paraphrase key candidate answers to be sure you understand what they meant to say. Tips for Interviewers Adapted from Exhibit 15.2: Tips for interviewers

Plan the interview by reviewing the candidate and the job specifications.

Establish rapport with a friendly greeting and start the interview with a nonjob question.

Follow structured set of questions.

Avoid questions that require or solicit a simple yes or no response.

Try not to telegraph, or give cues for, the desired answer.

Make sure the candidate has plenty of time to answer—do not monopolize the conversation.

Listen carefully and paraphrase key candidate answers to be sure you understand what they meant to say.

Ask for specific, not general, examples of the candidate’s experience and accomplishments. Leave time at the end of the interview to answer questions from the candidate. At the close make sure the candidate knows what the next steps are and approximate timing. After the candidate leaves, review your notes and highlight important points while they are fresh in your mind. Tips for Interviewers Adapted from Exhibit 15.2: Tips for interviewers

Ask for specific, not general, examples of the candidate’s experience and accomplishments.

Leave time at the end of the interview to answer questions from the candidate.

At the close make sure the candidate knows what the next steps are and approximate timing.

After the candidate leaves, review your notes and highlight important points while they are fresh in your mind.

Prepare for the interview by researching the company through articles and its own Web site. Smile and provide a warm greeting and firm handshake if the interviewer extends his or her hand. Make sure that your overall appearance (hair style, clothing, makeup, and so on) match the nature of the business and culture of the company. Watch your nonverbal behavior to ensure that you maintain good eye contact and convey enthusiasm without being overly expressive with your hands or other body movements. Try to solicit the interviewer’s needs early in the interview. Tips for Interviewees Adapted from Exhibit 15.3: Tips for Interviewees

Prepare for the interview by researching the company through articles and its own Web site.

Smile and provide a warm greeting and firm handshake if the interviewer extends his or her hand.

Make sure that your overall appearance (hair style, clothing, makeup, and so on) match the nature of the business and culture of the company.

Watch your nonverbal behavior to ensure that you maintain good eye contact and convey enthusiasm without being overly expressive with your hands or other body movements.

Try to solicit the interviewer’s needs early in the interview.

Early in the interview be sure to get a complete picture of the job through questions such as “Can you tell about what has led people to succeed in this job in the past?” Explicitly relate yourself and capabilities to the interviewer’s needs through statements such as, “You mentioned that one of the keys to this position is the ability to motivate others. In my experience at XYZ. . . .” Take your time before answering; you do not need to begin talking the instant the interviewer ask a question. Conclude the interview by thanking the person for the opportunity and expressing your interest in the company and the position. Tips for Interviewees Adapted from Exhibit 15.3: Tips for Interviewees

Early in the interview be sure to get a complete picture of the job through questions such as “Can you tell about what has led people to succeed in this job in the past?”

Explicitly relate yourself and capabilities to the interviewer’s needs through statements such as, “You mentioned that one of the keys to this position is the ability to motivate others. In my experience at XYZ. . . .”

Take your time before answering; you do not need to begin talking the instant the interviewer ask a question.

Conclude the interview by thanking the person for the opportunity and expressing your interest in the company and the position.

HRM Activities Socialization and training Orientation Minimize paperwork Informal meeting with hire’s immediate supervisor Alternate heavy and lighter information Provide glossary of terms Match new employees with experienced worker On-the-job training Off the job training Training objectives Maximizing Performance

Socialization and training

Orientation

Minimize paperwork

Informal meeting with hire’s immediate supervisor

Alternate heavy and lighter information

Provide glossary of terms

Match new employees with experienced worker

On-the-job training

Off the job training

Training objectives

Expanded Responsibilities. This training technique expands the job duties, assignments, and responsibilities of an individual. Job Rotation. Also called cross-training , this practice moves individuals to various types of jobs within the organization at the same level or next-immediate-higher level for periods of time from an hour or two to as long as a year. Staff Development Meetings. Meetings are usually held offsite to discuss facts of each individual’s job and to develop ideas for improving job performance. ” Assistant to” Positions. Promising employees serve as staff assistants to higher-skill level jobs for a specified period of time (often one to three months) to become more familiar with the higher-skilled positions in the organization. On-the-job Training Techniques Adapted from Exhibit 15.4: On-the-job Training Techniques

Expanded Responsibilities. This training technique expands the job duties, assignments, and responsibilities of an individual.

Job Rotation. Also called cross-training , this practice moves individuals to various types of jobs within the organization at the same level or next-immediate-higher level for periods of time from an hour or two to as long as a year.

Staff Development Meetings. Meetings are usually held offsite to discuss facts of each individual’s job and to develop ideas for improving job performance.

” Assistant to” Positions. Promising employees serve as staff assistants to higher-skill level jobs for a specified period of time (often one to three months) to become more familiar with the higher-skilled positions in the organization.

Problem-Solving Conferences. Conferences are held to solve a specific problem being experienced by a group or the organization as a whole. It involves brainstorming and other creative means to come up with solutions to the basic problems. Mentoring. A guide or knowledgeable person higher up in the organization helps a new employee “learn the ropes” of the organization and provides other advice. Special Assignments. Special tasks or responsibilities are given to an individual for a specified period of time. The assignment may be writing up a report, investigating the feasibility for a new project, process, service, or product, preparing a newsletter, or evaluating a company policy or procedure. On-the-job Training Techniques Adapted from Exhibit 15.4: On-the-job Training Techniques

Problem-Solving Conferences. Conferences are held to solve a specific problem being experienced by a group or the organization as a whole. It involves brainstorming and other creative means to come up with solutions to the basic problems.

Mentoring. A guide or knowledgeable person higher up in the organization helps a new employee “learn the ropes” of the organization and provides other advice.

Special Assignments. Special tasks or responsibilities are given to an individual for a specified period of time. The assignment may be writing up a report, investigating the feasibility for a new project, process, service, or product, preparing a newsletter, or evaluating a company policy or procedure.

Company Trainers. Special programs can cover such topics as safety, new personnel procedures, new product or services, affirmative action, and technical programs. Outside Consultants. Recognized experts are brought to the company to conduct training on such topics as goal setting, communications, assessment techniques, safety, and other current topics of importance. They often supplement training done by company trainers. Consultant Advisory Reviews. Experts in specialized fields meet with various managers and employee groups to investigate and help solve particular problems. The emphasis is on problem solving rather than training. On-the-job Training Techniques Adapted from Exhibit 15.4: On-the-job Training Techniques

Company Trainers. Special programs can cover such topics as safety, new personnel procedures, new product or services, affirmative action, and technical programs.

Outside Consultants. Recognized experts are brought to the company to conduct training on such topics as goal setting, communications, assessment techniques, safety, and other current topics of importance. They often supplement training done by company trainers.

Consultant Advisory Reviews. Experts in specialized fields meet with various managers and employee groups to investigate and help solve particular problems. The emphasis is on problem solving rather than training.

Reading Matter. A formal program is created to circulate books, journals, selected articles, new business material, and so on to selected employees. An effective program also includes periodic scheduled meetings to discuss the material. Apprenticeship. Training is provided through working under a journeyman or master in a craft. The apprentice works alongside a person skilled in the craft and is taught by that person. Apprenticeship programs also often include some classroom work. On-the-job Training Techniques Source: Adapted from W. P. Anthony, D. L. Perrewé, and K. M. Kacmar, Strategic Human Resource Management (Fort Worth, TX: Harcourt Brace Jovanovich, 1993). Adapted from Exhibit 15.4: On-the-job Training Techniques

Reading Matter. A formal program is created to circulate books, journals, selected articles, new business material, and so on to selected employees. An effective program also includes periodic scheduled meetings to discuss the material.

Apprenticeship. Training is provided through working under a journeyman or master in a craft. The apprentice works alongside a person skilled in the craft and is taught by that person. Apprenticeship programs also often include some classroom work.

Training Objectives Understanding correct and incorrect behaviors Knowledge of why certain behaviors are correct or incorrect Opportunities to practice desired behaviors Feedback on performance Opportunities to practice and improve

HRM Activities Job design Job sharing Reengineering Maximizing Performance Performance appraisal Graphic rating scales Behaviorally anchored rating scales 360-degree feedback Effective performance feedback Critical incidents

Job design

Job sharing

Reengineering

Performance appraisal

Graphic rating scales

Behaviorally anchored rating scales

360-degree feedback

Effective performance feedback

Critical incidents

Graphic Rating Scale Adapted from Exhibit 15.5: Graphic Rating Scale 1. Quality of work 2. Quantity of work 3. Cooperation 4. Dependability 5. Initiative 6. Job knowledge 7. Attitude Employee name: Dept. Excellent Good Average Fair Poor

Behaviorally Anchored Rating Scale Adapted from Exhibit 15.6: Behaviorally Anchored Rating Scale Plans work and organizes time carefully so as to maximize resources and meet commitments Even though this associate has a report due on another project, he or she would be well prepared for the assigned discussion on your project 9 8 7 This associate would keep a calendar or schedule on which deadlines and activities are carefully noted, and which would be consulted before making new commitments. Position: Job dimensions:

Behaviorally Anchored Rating Scale Plans and organizes time and effort primarily for large segments of a task. Usually meets commitments, but may overlook what are considered secondary details. As program chief, this associate would mange arrangements for enlisting resources for a special project reasonably well, but would probably omit one or two details that would have to be handled by improvisation. 6 5 4 This associate would meet a deadline in handing in a report, but the report might be below usual standard if other deadlines occur on the same day the report is due. This associate’s evaluations are likely not to reflect abilities because of overcommitments in other activities. Adapted from Exhibit 15.6: Behaviorally Anchored Rating Scale

Behaviorally Anchored Rating Scale Appears to do little planning. May perform effectively, despite what seems to be a disorganized approach, by concerted effort, although deadlines may be missed. This associate would plan more by enthusiasm than by timetable and frequently have to work late the night before an assignment is due, although it would not be completed on time. 3 2 1 This associate would often be late for meetings, although others in similar circumstances do not seem to find it difficult to be on time. This associate never makes a deadline, even with sufficient notice. Adapted from Exhibit 15.6: Behaviorally Anchored Rating Scale

Performance Appraisal Interview Review key work objectives, goals, or standards against which the employee’s performance is measured Review work objectives

Review key work objectives, goals, or standards against which the employee’s performance is measured

Performance Appraisal Interview Summarize employee’s overall performance by reviewing specific positive and negative incidents Summarize overall performance (critical incidents) Review work objectives

Summarize employee’s overall performance by reviewing specific positive and negative incidents

Performance Appraisal Interview Discuss causes of weak performance and listen carefully to the employee’s explanation Summarize overall performance (critical incidents) Review work objectives Discuss causes of poor performance

Discuss causes of weak performance and listen carefully to the employee’s explanation

Performance Appraisal Interview Discuss alternative means of improving future performance and encourage employee input Summarize overall performance (critical incidents) Review work objectives Discuss causes of poor performance Agree on process for future improvement

Discuss alternative means of improving future performance and encourage employee input

Performance Appraisal Interview Establish an agreed approach, timetable, and review process for future improvement Summarize overall performance (critical incidents) Review work objectives Discuss causes of poor performance Agree on process for future improvement Discuss alternatives for improving

Establish an agreed approach, timetable, and review process for future improvement

Performance Appraisal Interview Establish key objectives, timetables, and standards for the upcoming performance period Summarize overall performance (critical incidents) Review work objectives Objectives for next performance period Discuss causes of poor performance Agree on process for future improvement Discuss alternatives for improving

Establish key objectives, timetables, and standards for the upcoming performance period

Performance Appraisal Interview Leave the meeting on an encouraging and positive note Summarize overall performance (critical incidents) Review work objectives Objectives for next performance period Discuss causes of poor performance Agree on process for future improvement Discuss alternatives for improving End with encouragement

Leave the meeting on an encouraging and positive note

HRM Activities Compensation Pay Pay structure Broad band system At-risk system Incentive plans Benefits Rewards and motivation Maximizing Performance

Compensation

Pay

Pay structure

Broad band system

At-risk system

Incentive plans

Benefits

Rewards and motivation

Pay Structure Adapted from Exhibit 15.7: Traditional and Contemporary Pay Structures Job evaluation points Monthly pay Traditional Pay Structure $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400

Pay Structure Job evaluation points Monthly pay Broad Band Pay Structure Adapted from Exhibit 15.7: Traditional and Contemporary Pay Structures 1 2 3 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 100 200 300 400 500 600 700 800 900 1000 1100 1200 1300 1400

HRM Activities Career systems and development Career paths Cross-functional job rotation Promotion Dual-career couples Termination Layoffs Labor relations Maximizing Performance

Career systems and development

Career paths

Cross-functional job rotation

Promotion

Dual-career couples

Termination

Layoffs

Labor relations

Laws and Regulations Affirmative action programs Expatriate employees Glass ceiling Bona fide occupational qualifications (BFOQ) Sexual harassment Workforce diversity Managing workforce diversity Globalization

Affirmative action programs

Expatriate employees

Glass ceiling

Bona fide occupational qualifications (BFOQ)

Sexual harassment

Workforce diversity

Managing workforce diversity

Globalization

Enforcement Act Requirements Covers Agency Major U.S. Federal Laws and Regulations Adapted from Exhibit 15.8: Major U.S. Federal Laws and Regulations Related to Human Resource Management Thirteenth Amendment Abolished slavery All individuals Court System Fourteenth Amendment Provides equal protection for all citizens and requires due process in state action State actions (e.g., decisions of governmental organizations Court System Civil Rights Acts of 1866 and 1871 Grant all citizens the right to make, perform, modify, and terminate contracts and enjoy all benefits, terms, and conditions of the contractual relationship Employers engaged in interstate commerce EEOC

Enforcement

Act Requirements Covers Agency

Enforcement Act Requirements Covers Agency Major U.S. Federal Laws and Regulations Equal Pay Act of 1963 Requires that men and women performing equal jobs receive equal pay Employers with 15 or more employees working 20 or more weeks per year, labor unions, and employment agencies EEOC Title VII of CRA Provides equal protection for all citizens and requires due process in state action State actions (e.g., decisions of governmental organizations Court System Age Discrimination in Employment Act of 1967 Prohibits discrimination in employment against individuals 40 years of age or older Employers with 15 or more employees working 20 or more weeks per year; labor unions; employment agencies; federal government EEOC Adapted from Exhibit 15.8: Major U.S. Federal Laws and Regulations Related to Human Resource Management

Enforcement

Act Requirements Covers Agency

Enforcement Act Requirements Covers Agency Major U.S. Federal Laws and Regulations Rehabilitation Act of 1973 Requires affirmative action in the employment of individuals with disabilities Government agencies; federal contractors and subcontractors with contracts greater than $2,500 OFCCP Americans with Disabilities Act Prohibits discrimination against individuals with disabilities of 1990 Employers with more than 15 employees EEOC Executive Order 11246 Requires affirmative action in hiring women and minorities Federal contractors and subcontractors with contracts greater than $10,000 OFCCP Civil Rights Act of 1991 Prohibits discrimination (same as Title VII) Same as Title VII, plus applies Section 1981 to employment discrimination cases OFCCP Adapted from Exhibit 15.8: Major U.S. Federal Laws and Regulations Related to Human Resource Management

Enforcement

Act Requirements Covers Agency

Enforcement Act Requirements Covers Agency Major U.S. Federal Laws and Regulations Family and medical leave Act of 1993 Requires employers to provide 12 weeks of unpaid leave for family and medical emergencies Employers with more than 50 employees Department of Labor Source: Raymond A. Noe, John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright, Human Resource Management: Gaining a Competitive Advantage (Burr Ridge, Ill.:Richard D. Irwin, 1997), p. 107. Copyright 1997. Reproduced with permission of The McGraw-Hill Companies. Adapted from Exhibit 15.8: Major U.S. Federal Laws and Regulations Related to Human Resource Management

Enforcement

Act Requirements Covers Agency

Diversity of U.S. Workforce African-American men African-American women Asian men Asian women Hispanic men Hispanic women White men White women Adapted from Exhibit 15.9: Increasing Diversity of U.S. Workforce Percentage increases by year 2000 0 10 20 30 40 50 60 70 80 90 100 22% 29% 58% 65% 60% 71% 8% 20%

Where the Workers Are 1950 1990 2025 Adapted from Exhibit 15.10: Where the Workers Are Percentage of workers located in developed and developing countries 100 80 60 40 20 0 33% 67% 25% 75% 17% 83% Developed Countries Developing Countries