I/O chapter 5

HUMAN RESOURCE DEVELOPMENT
AND MANAGEMENT
by Jason O. Manaois, Psychology Department

Objectives
At the end of the learning period, the students will be
able to be:

 Familiarize and Examine the nature of different
facets of HRD
 Actualize the different functional components of
HRD
 Analyze the process incorporated in the each facet
of HRD

Context and Definition
 Human Resource Development (HRD) is the framework for
helping employees develop their personal and
organizational skills, knowledge, and abilities. Human
Resource Development includes such opportunities as
employee training, employee career development,
performance management and development, coaching,
mentoring, succession planning, key employee identification,
tuition assistance, and organization development.
 The focus of all aspects of Human Resource Development is
on developing the most superior workforce so that the
organization and individual employees can accomplish their
work goals in service to customers.

http://humanresources.about.com/od/glossaryh/f/hr_development.htm

 Organizations have many opportunities for human
resources or employee development, both within
and outside of the workplace.
 Human Resource Development can be formal such
as in classroom training, a college course, or an
organizational planned change effort. Or, Human
Resource Development can be informal as in
employee coaching by a manager. Healthy
organizations believe in Human Resource
Development and cover all of these bases.

http://humanresources.about.com/od/glossaryh/f/hr_development.htm

 HRD is "organized learning activities arranged within
an organization in order to improve performance
and/or personal growth for the purpose of improving
the job, the individual, and/or the organization" (1).
HRD includes the areas of training and development,
career development, and organization development.
 This is related to Human Resource Management -- a
field which includes HR research and information
systems, union/labor relations, employee assistance,
compensation/benefits, selection and staffing,
performance management systems, HR planning, and
organization/job design (2).

http://alumnus.caltech.edu/~rouda/T1_HRD.html

 Human Resource Management (HRM) is the function
within an organization that focuses on recruitment of,
management of, and providing direction for the people
who work in the organization. HRM can also be
performed by line managers.
 HRM is the organizational function that deals with issues
related to people such as compensation, hiring,
performance management, organization development,
safety, wellness, benefits, employee motivation,
communication, administration, and training.

http://humanresources.about.com/od/glossaryh/f/hr_management.htm

 HRM is also a strategic and comprehensive approach to
managing people and the workplace culture and
environment. Effective HRM enables employees to contribute
effectively and productively to the overall company
direction and the accomplishment of the organization's goals
and objectives.
 HRM is moving away from traditional personnel,
administration, and transactional roles, which are
increasingly outsourced. HRM is now expected to add value
to the strategic utilization of employees and that employee
programs impact the business in measurable ways. The new
role of HRM involves strategic direction and HRM metrics
and measurements to demonstrate value.

http://humanresources.about.com/od/glossaryh/f/hr_management.htm

Components of a Human Resource
Management System
8

The Facets of H.R. Department

 Recruitment and Selection
 Training and Development

 Employee Relations

 Compensation and Benefits

 Organizational Development

RECRUITMENT AND SELECTION
http://www.peoples-edge.de/en/home/

Definition
Recruitment can be defined as:
 all activities directed towards locating potential
employees
 the attraction of applications from suitable applicants.
The aim of recruitment is to get the best person suited
to the job based on objective criteria for a particular
job.
Used to attract and hire new employees who have the
abilities, skills, and experiences that will help an
organization achieve its goals.
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Recruitment and Selection
 Recruitment:
 Attracting qualified candidates to work in an organization.
 is the process of generating a pool of capable people to
apply for employment to an organization.
 Selection:
 Selecting among the applicants.
 is the process by which managers and others use specific
instruments to choose from a pool of applicants a person or
persons most likely to succeed in the job(s), given
management goals and legal requirements.

Purpose of Recruitment

 Determine present and future needs for personnel
 Increase the pool of qualified applicants
 Increase the fit of the applicants attracted
 Increase chances of retention by attracting the right
candidates
 Provide realistic job previews
 Adhere to legal and social requirements
 Analyze the labor pools

13

Why is recruitment and selection so important?

Costs of mistakes:
engaging incompetent,
Element of PR
underqualified, unmotivated
strategy
employees; employing
another person requires
repeating the process and
generates costs

14

Rules of recrutiment and selection
 Commonality
 Openess
 Competitiveness
 Legality
 Non-discrimination
 Constancy of criteria
 Neutrality
 Objectivism
 Transparency
 Personal data security
 Acting without delay

15

The typical staffing process
Planning and approval for staffing
Recruitment

Position announcement

Selection of recruitment strategies

Selection of “tests”
Selection

Screen, interview, and checks (reference and other)

Final selection / Negotiate and hire

Postselection considerations
16

The stages of recruitment and selection

Web support material for Human Resource Management: Theory and Practice, Third Edition
© John Bratton and Jeffrey Gold 2003, published by Palgrave Macmillan

Recruitment and Selection
 Recruitment and selection are vital to the formation of a
positive psychological contract, which provides the basis of
organizational commitment and motivation.
 The attraction and retention of employees is part of the
evolving employment relationship, based on a mutual and
reciprocal understanding of expectations.
 There are wide variations in recruitment and selection practices,
reflecting an organization‘s strategy and its philosophy towards
the management of people.
 Progressive HR practices are crucial to a positive psychological
contract – this includes attention to effective recruitment and
selection practices.

Employer recruitment
Elements influencing effectiveness of recruitment:
 The breadth and quality of the process
 The size of the labour pool and the location of jobs
 Offered pay and benefits
 Job quality and requirements of the position
 Organizational image

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Position announcement
20

Agency Affiliation

Job Title
Salary range
Description of duties & responsibilities
Minimum qualifications
Application procedures
Time and place of applications

Analysis: Candidates

 Who is the ideal candidate for the agency?
 What has attracted qualified candidates to the agency?
 How did those qualified candidates learn about openings?
 Why is the pool of qualified candidates shrinking?
 What is the value system of the new generation and how can
the agency package itself to show potential candidates that
the agency has what they desire?

21

Recruitment strategies
 Job posting
 Electronic posting
 Personal contact recruitment
 Recruitment by mail
 Head-hunting
 Noncompetive recruitment
 Develop a recruiting DVD

22

Recruitment strategies: Partnerships

University/college/ Student Interns
high school
communications, art
and computer
science programs

Professional
Other city production
departments or companies and
agencies to advertising
advertise
agencies

23

Analysis: recruitment strategies

 What has worked or not worked in terms of recruitment strategies and
advertising in the past?
 Are signing bonuses or other incentives important?
 How can current employees be ambassadors for the agency and help recruit
qualified candidates?
 What recruitment materials does the agency already have and how current
are they?
 Does the agency have a recruitment website and how many hits is it
generating?
 Has the agency used paid advertisement in the past and, if so, what value
did it ad to the recruitment process?
 What strategies is the agency using to attract the interest of grade school
up to high school students?

24

Selection criteria
 Selection criteria should be expressed in terms of:
 Essential – requirements that are critical to successful
performance in the position without which a person could not
be appointed; and
 Desirable – requirements that would enable the person to
perform at a higher level in the position, but without which
the person could still be appointed.
 The total number of essential and
desirable criteria shall not exceed
10.

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Selection criteria
Selection criteria shall:
 be written in simple and clear language;
 be specific and not overlapping or repetitive;
 be based on the real requirements of the position;
 not be excessive in number (i.e. not more than 10 in total)
 not discriminate unlawfully either directly or indirectly against
applicants
 not favour either internal or external applicants; and
 be consistent with the classification standards of the position.

26

Screening
 Retention Survey found that nationally small agencies took an
average of 6.84 weeks to conduct the screening processes,
while large agencies took an average of 11.51 weeks (U.S.
Department of Justice, Office of Justice Programs, Hiring and
Keeping Police Officers)
 GOAL: reduce this time so that valuable candidates are still
available

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Screening Process

• Discriminating among the qualified and the unqualified
1

• Identifying most highly qualified candidates
2

• Screening particular candidates; results in offering position
3 to the best candidate

• Confirming the qualifications and ability of the chosen
4 candidate; it may include the first period of employment

28

Principles of the screening
 A fair set of screening criteria
 The criteria must be in line with the job content and
appointment as well as advertised requirements
 Applicants should be clear on the criteria that apply
 The criteria should apply to all applicants in a consistent
manner
 Any waivers should be fully motivated and approved
 Declarations should be made of whether any candidate is
related to or friends of an official in the component where the
vacancy exists
 The various activities of the screening process should be
documented and put on record

29

Initial reviewing and testing
 Education and experience
evaluations
 Letters of recommendation
 Self-assessment
 General aptitude and
trait test
 Performance test for
specific jobs

31

Reducing the pool: interview
1. Plan how it should proceed: persons, place, roles
2. Prepare list of written questions asked of all candidates
3. Use a work sample as part of the process
 Critique or evaluate sth
 Solve a problem
 Deliver oral presentation, etc
4. Explain basic facts about the position
5. Use the job description and advertisement guides to ensure
that the focus is on essential job functions

32

6. Set up interviews in private
job-settings where distractions
are unlikely
7. Concentrate on listening to
applicant‘s answers and take
notes during the interview
8. Be careful that no oral commitments or suggestions about
employment prospects are made
9. Complete your evaluation notes when impressions are fresh

33

 Subjects to Avoid
 Marital status
 Children and other dependants

 Religion

 Politics

 Ethnic origins

34

Final selection
1. Keep a list of all applicants considered for final selection.
2.Identify fair selection criteria for the final selection phase.
3.Ensure that the criteria are in line with the advertised
requirements as well as the job content.
4. Ensure that each selection committee member is provided with
all the relevant information pertaining to each short-listed
applicant.
5. Ensure that the interviews are conducted in a fair and effective
manner and that each candidate is weighed comprehensively
against the requirements as advertised.
6. Ensure that a comprehensive motivation is compiled in respect of
all the applicants interviewed.
7. Ensure that all applicants are informed about the outcome of
the final selection phase.
8. Ensure that all relevant information is put on record.
35

Closing selection
• Phone call and further clarification
• Letter of intent
• Completing employment forms
• Protocols may be available for intetested
individuals
• Number of candidates
• Names, surenames and adresses of 5 top
candidates
• Recruitment and selection criteria
• Justification of the decision
36

Trends in recruitment and selection
Procedural Changes:
 Eliminating arbitrary rules and regulations that restrict the
choices of hiring managers and supervisors
 Adopting flexible and appealing hiring procedures.
 Screening applicants quickly
 Validating entry requirements and examinations.
 Instituting worker-friendly personnel policies,
 Creating more flexible job descriptions.

37


Improvements to the Recruitment and Selection Process:
 The decentralization movement — "New Public Management"
is known in many quarters as devolution, often characterized
by the decentralization of HR responsibility.
 Aggressive outreach efforts
 Current employees as recruiters

38


Use of Technology:
 Many scholars believe that technology will be the most notable
HRM trend of the next few decades
 Many large public organizations use computer bulletin boards
and electronic mail to improve recruitment process
 Managers can have online access to applicants' test scores,
qualifications and contact information
 Software programs: to administer online examinations, track
applicants, match resumes with skill sets, expedite background
checks, and shepherd job candidates through a paperless
staffing process

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10 golden rules of recruitment & selection
40

1. Develop a Recruitment Plan
2. Conduct Research
3. Personalize the Recruitment Process
4. Select and Train the Right People as Recruiters
5. Build Strong Partnerships
6. Develop an Employee Referral Program
7. Improve the Selection Process
8. Develop an Advertising Plan
9. Develop an Internet Presence
10. Employ Effective Recruitment Strategies

Internal Sources of Candidates:
Hiring from Within
 Advantages  Disadvantages
 Foreknowledge of  Failed applicants become
candidates‘ strengths and discontented
weaknesses  Time wasted interviewing
 More accurate view of inside candidates who will
candidate‘s skills not be considered
 Candidates have a  Inbreeding of the status
stronger commitment to the quo
company
 Increases employee morale
 Less training and
orientation required

Internal vs External Labor Markets
 Germany, Japan, France, and Switserland use more
internal sources for promotions
 Britaion, USA, Denmark, Hong Kong use external
sources more

Offshoring/Outsourcing White-Collar
and Other Jobs
• Specific issues in outsourcing jobs abroad
– Political and military instability
– Likelihood of cultural misunderstandings
– Customers‘ security and privacy concerns
– Foreign contracts, liability, and legal concerns
– Special training of foreign employees
– Costs associated with companies supplying foreign
workers

Selection Techniques

assessment centre
psychometric test
application forms

for management
for management

for management
Interview panel

references for
interviews for
Management

management

management
One-to one

graphology
used for

UK 78.1 51.7 66.7 47.6 26.7 1.1 79.7
France 22.1 92.1 75.7 23.6 12.9 19.3 46.4
Germany 56.8 60.2 13.5 6.1 23.3 2.0 45.8
Turkey 29.2 53.2 47.4 15.8 11.1 1.8 60.8
Australia 77.2 53.3 44.4 37.1 5.8 1.2 77.6
USA 59.6 68.5 59.2 10.0 7.3 0.4 64.6
Tunisia 9.0 65.6 50.8 34.9 5.3 3.7 29.6

Recruitment and Attraction

A key role for HR is to align performance within roles with
the strategy, so recruiting for the ‗right‘ people for a role
depends on how it is defined in terms relating to
performance to achieve the strategy.
Criterion-related behaviours or standards of performance
are referred to as competencies.
Competencies can be used to provide the behaviours
needed at work to achieve the business strategy, and
enable organizations to form a model of the kinds of
employee it wishes to attract through recruitment.

Fig 7.2 Attraction and Selection


Attracting Applicants
The main approaches to attracting applicants can be summarized
as follows:
• Walk-ins • Educational associations
• Employee referrals • Professional agencies
• Advertising • E-recruitment (general recruitment
• Websites agents/ companies‘ own sites)

• Professional associations • Word-of-mouth


Recruitment Considerations
An organization will take account of a number of factors when
forming its recruitment plans and choice of media.
These might include:
Cost
Time taken to recruit and select
Labour market focus, for example: skills, profession or occupation
Mobility of labour – geographic and occupational
Legislation on sex discrimination, race discrimination and disability

Job description format


A seven-point plan


Five-fold grading system


Person specs vs competencies
Personnel specifications versus competencies
Personnel specifications may contain stereotypes of the
‗ideal‘ person and so organizations may be reinforcing the
stereotype in their recruitment practices.
The use of competencies allows organizations to free
themselves from traditional stereotypes in order to attract
applicants from a variety of sources.
Competencies appear to be more objective, have a variety
of uses in attracting applicants and allow an organization
to use more reliable and valid selection techniques.

Selection: costs
Organizations have become increasingly aware of
making good selection decisions, since it involves a
number of costs:

The cost of the selection process itself, including the use
of various selection instruments

The future costs of inducting and training new staff
The cost of labour turnover if the selected staff are not
retained


Selection: principles

Underlying the process of selection and the choice of
techniques are two key principles:

1. Individual differences: Attracting a wide choice of
applicants will be of little use unless there is a way of
measuring how people differ, i.e. intelligence, attitudes,
social skills, psychological and physical characteristics,
experience etc.

2. Prediction: A recognition of the way in which people
differ must be extended to a prediction of performance
in the workplace.

Reliability and Validity Issues

Reliability refers to the extent to which a selection technique
achieves consistency in what it is measuring over
repeated use.

Validity refers to the extent to which a selection technique
actually measures what it sets out to measure.


Selection Interviews
Information elicited – interviews have a specific focus, i.e. facts,
subjective information, underlying attitudes.

Structure – ranging from the completely structured to the
unstructured. A compromise between the two enables the
interviewer to maintain control yet allowing the interviewee
free expression.

Order and involvement – the need to obtain different kinds of
information may mean the involvement of more than one
interviewer. Applicants may be interviewed serially or in a
panel.

Selection table 7.1


Psychometric Testing
Personality research has lent support to the use of sophisticated
selection techniques such as psychometric tests that have a
good record of reliability and validity.

• Ability tests: these focus on mental abilities
(verbal/numerical) and physical skills testing. Right/wrong
answers allow applicants to be placed in ranked order.

• Inventories: self-report questionnaires indicating traits,
intelligence, values, interests, attitudes and preferences. No
right/wrong answers but a range of choices between
possible answers.

E-assessment
On-line testing, or e-assessment, is also used for selection and
other HR purposes.

Benefits:
Online testing enables organizations to test at any time and
anywhere in the world.
It enables the quick processing of applicants.

Drawback:
Loss of control over the administration of the tests – anyone can
be called on to help

Assessment Centres
Assessment centres are designed to yield information that can
be used to make decisions concerning suitability for a job.

They provide a fuller picture by combining a range of
techniques.

General methods used include group discussions, role plays and
simulations, interviews and tests.

Candidates attending an assessment centre will be observed by
assessors who should be trained to judge candidates‘
performance against criteria contained within the competency
framework.

Realistic Job Previews
Applicants have expectations about how the organization will
treat them. Recruitment and selection represent an opportunity
to clarify these.

Realistic job previews (RJPs) provide a means of achieving this.

RJPs can take the form of case studies, shadowing, job sampling
and videos – this enables the expectations of applicants to
become more realistic.

RJPs: lower initial expectations, cause some applicants to de-select
themselves, increase levels of organization commitment, job
satisfaction, performance and job survival.

Best practices

63

National Nuclear Security Administration (NNSA)
Problem:
 A review of the hiring practices found that job announcements
were filled with jargon, lots of facts and information, and
extensive list of job duties which made it difficult to identify
major features and selling points of the job.
 Recruitment was passive… NNSA waited for applicants to
apply.

64

Makeover:
 A new look to convey the importance and excitement of their positions, as well
as why they were a great place to work
 Added photos to depict the unique work environment at NNSA.
 Implemented an internet-based targeted recruitment strategy to identify
potential candidates from job boards and other locations
 They sent recruiters to fifteen universities in the South and West to recruit
interns with an emphasis on diversity
 The results produced 28 qualified candidates, up from three unqualified
candidates in the previous recruitment process
+ 30 highly qualified interns

Best practices

65

U.S. Department of Education
Problem:
 The hiring process took too long and did not always deliver qualified
candidates.
 Upon mapping out the hiring process, it was discovered that there were
discrete steps with over 45 handoffs between different managers,
administrative officers and HR specialists.
 Managers were disengaged from the hiring process. Job descriptions were
problematic. When managers could not find good candidates they had a
tendency to sit on the list, until ultimately it was re-posted.

66

Makeover:
 The hiring process was streamlined by eliminating redundancies and
unnecessary steps resulting in a reduction of more than half of the
steps…down to 53.
 The automated process for assessing applicants has been overhauled
and questions are more closely aligned with skills needed to be
successful on the job.
 The process of change has not been easy and has taken a
commitment of time and effort on the part of leaders, HR, managers
and others involved in the hiring process.

Best practices

67

Centers for Medicare & Medicaid Services
Problem:
 Federal law changed requiring the agency to add 500 new
positions. The length of time to complete the hiring process was long
and the quality of candidates was lacking.
 The automated staffing system in place was believed to be
inadequate to meet the demands of the hiring needs. The agency
wanted top talent and a faster process.

68

Makeover:
 The agency started with an ―end-to-end‖ mapping of the hiring process and
identified both short and long term fixes. They used focus groups to document
the process, identify roles and responsibilities, and assess obstacles.
 Through the process the agency eventually reduced the number of steps in
the hiring process by more than twenty percent.
 Other key things they did included better marketing positions using visually
appealing, plain-English announcements, proactively targeting qualified
candidates via internet, resume databases and built tools to effectively
screen applicants to ensure they were a good fit for the position.
 They eventually assigned responsibility for the process to one person at the
executive level.

Figure 12.3 Steps in the selection process: the
case of a rejected job applicant.
71

Management - Chapter 12

How do organizations attract a quality workforce?
72

 Step 1—application forms
 Declares individual to be a job candidate.
 Documents applicant‘s personal history and
qualifications.
 Personal résumés may be included.
 Applicants lacking appropriate credentials are rejected
at this step.


73

 Step 2—interviews
 Exchange of information between job candidate and
key members of the organization.
 Opportunity for job candidate and organizational
members to learn more about each other.


74

 Step 3 — employment tests
 Used to further screen applicants by gathering
additional job-relevant information.
 Common types of employment tests:
 Intelligence
 Aptitude
 Personality
 Interests


75

 Criteria for selection devices:
 Reliability

 The selection device is consistent in measurement.
 Validity

 There is a demonstrable relationship between a person‘s
score or rating on a selection device and his/her eventual
job performance.


76

 Behaviorally-oriented employment tests:
 Assessment center
 Evaluates a person‘s performance in simulated work
situations.
 Work sampling
 Evaluates a person‘s performance on actual job tasks.


77

 Step 4 — reference and background checks
 Inquiries to previous employers, academic advisors,
coworkers and/or acquaintances regarding applicant‘s:
 Qualifications.
 Experience.
 Past work records.
 Can better inform potential employer.
 Can enhance candidate‘s credibility.


78

 Step 5 — physical examinations
 Ensure applicant‘s physical capability to fulfill job
requirements.
 Basis for enrolling applicant in life, health, and
disability insurance programs.
 Drug testing is done at this step.


79

 Step 6 — final decision to hire or reject
 Best selection decisions will involve extensive
consultation among multiple parties.
 Selection decision should focus on all aspects of the
candidate‘s capacity to perform the designated job.


TRAINING AND DEVELOPMENT

Training and Development
 Training and Development
 Ensures that organizational members develop the skills
and abilities that will enable them to perform their jobs
effectively in the present and the future
 Changes in technology and the environment require that
organizational members learn new techniques and
ways of working

Study Question 4: How do organizations develop a
quality workforce?
82

 Socialization
 Process of influencing the expectations, behavior, and
attitudes of a new employee in a way considered
desirable by the organization.
 Orientation
 Set of activities designed to familiarize new employees
with their jobs, coworkers, and key aspects of the
organization.


quality workforce?

 Training  On-the-job training
 A set of activities that  Job rotation
provides the  Coaching
opportunity to acquire  Mentoring
and improve job-
 Modeling
related skills.
 Off-the-job training
 Management
development

Management - Chapter 12 83

12-84

 Training
 Teaching organizational members how to perform
current jobs and helping them to acquire the
knowledge and skills they need to be effective
performers.

12-85

 Development
 Buildingthe knowledge and skills of organizational
members to enable them to take on new responsibilities
and challenges.

12-86

 Needs Assessment
 Anassessment of which employees need training or
development
and what type of skills
or knowledge they need
to acquire.

12-87

Figure 12.4

Types of Training
12-88

 Classroom Instruction
 Employees acquire skills in a classroom setting.
 Includes use of videos, role-playing, and simulations.
 On-the-Job Training
 Employee learning occurs in the work setting as new
worker does the job.
 Trainingis given by co-workers and can be done
continuously to update the skills of current employees.

Types of Development
12-89

 Varied Work Experiences
 Top managers have need to and must build expertise
in many areas.
 Employees identified as possible top managers are
assigned different tasks and a variety of positions in an
organization.
 Formal Education
 Tuitionreimbursement is common for managers taking
classes for MBA or job-related degrees.
 Long-distancelearning can also be used to reduce travel
and other expenses for managerial training.

HUMAN RESOURCE PRACTICES

Orientation And Training
 Orientation
 the process of formally introducing new employees to their jobs and
socializing them with performance expectations.

 Training
 keeping workers‘ skills up to date and job relevant; important training
approaches include coaching and mentoring.
 Coaching
 An experienced person offers performance advice to a less experienced person
 Mentoring
 Assigns early career employees as protégés to more senior ones

EMPLOYEE RELATIONS

Employee Relations
 Labor relations
 Stepsthat managers take to develop and maintain
good working relationships with the labor unions that
may represent their employees‘ interests

Study Question 5: How do organizations maintain a
quality workforce?
93

 Career development
 Career — a sequence of jobs that constitute what a person
does for a living.
 Career path — a sequence of jobs held over time during a
career.
 Career planning —matching career goals and individual
capabilities with opportunities for their fulfillment.
 Career plateau — a position from which someone is unlikely
to move to a higher level of responsibility.
 Progressive employers seek ways to engage plateaued employees.


quality workforce?
94

 Work-life balance
 How people balance career demands with personal and
family needs.
 Progressive employers support a healthy work-life balance.
 Contemporary work-life balance issues:
 Single parent concerns
 Dual-career couples concerns
 Family-friendliness as screening criterion used by candidates


quality workforce?
95

 Retention and turnover
 Replacement is the management of promotions,
transfers, terminations, layoffs, and retirements.
 Replacement decisions relate to:
 Shifting people between positions within the organization.
 Retirement.

 Termination.


quality workforce?
96

 Labor-management relations
 Labor unions deal with employers on the workers‘ behalf.
 Labor contracts specify the rights and obligations of
employees and management regarding wages, work hours,
work rules, seniority, hiring, grievances, and other conditions
of employment
 Collective bargaining is the process of negotiating,
administering, and interpreting a labour contract.


Figure 12.5 The traditional adversarial view of
labor-management relations.
97


quality workforce?

 Unions can create  Management can
difficulties for create difficulties for
management by… unions by…
 Striking  Using lockouts

 Boycotting  Hiring strike-breakers

 Picketing  Seeking injunctions

Management - Chapter 12 98

The Legal Environment of HRM
12-99

 Equal Employment Opportunity (EEO)
 The equal right of all citizens to the opportunity to
obtain employment regardless of their gender, age,
race, country of origin, religion, or disabilities.
 Equal Employment Opportunity Commission (EEOC)
enforces employment laws.

The Legal Environment of HRM
12-100

 Contemporary challenges for managers
 How to eliminate sexual harassment
 How to make accommodations for employees with
disabilities
 How to deal with employees who have substance abuse
problems
 How to manage HIV-positive employees and employees
with AIDs

Question?
12-101

What are the activities managers engage in to ensure
they have effective working relationships with
unions?
A. Collective bargaining
B. Labor relations
C. Employee negotiations
D. Labor deal

Labor Relations
12-102

 Labor Relations
 The activities managers engage in to ensure they have
effective working relationships with the labor unions
that represent their employees interests.

Labor Relations
12-103

 Laws regulating areas of employment.
 Fair Labor Standards Act (1938) prohibits child labor,
sets a minimum wage and maximum working hours.
 Equal Pay Act (1963) men and women doing equal
work will get equal pay.
 Work Place Safety (1970) OSHA mandates procedures
for safe working conditions.

Unions
12-104

 Unions
 Represent worker‘s interests to management in
organizations.
 The power that a manager has over an individual worker
causes workers to join together in unions to try to prevent
this.

Unions
12-105

 Collective bargaining
 Negotiation between labor and management to
resolve conflicts and disputes about issues such as
working hours, wages, benefits, working conditions,
and job security.

Movie Example: The Firm

 Were any or the
partners‘ questions
inappropriate? How
should Mitch have
responded to these
questions?

12-106

COMPENSATION AND BENEFITS

Compensation and Benrfits
 Pay and Benefits
 Rewarding high performing organizational members
with raises, bonuses and recognition.
 Increased pay provides additional incentive.
 Benefits, such as health insurance, reward membership in
firm.

quality workforce?
109

 Compensation and benefits
 Base compensation
 Salary or hourly wages
 Fringe benefits
 Additionalnon-wage or non-salary forms of
compensation
 Flexible benefits
 Employees can select a set of benefits within a certain
dollar amount


quality workforce?
110

 Compensation and benefits (cont.)
 Family-friendly benefits
 Help in balancing work and nonwork responsibilities
 Employee assistance programs
 Help employees deal with troublesome personal
problems.


Pay and Benefits
12-111

 Pay
 Includes employees‘ base salaries, pay raises, and
bonuses
 Determined by characteristics of the organization and
the job and levels of performance
 Benefits are based on membership in an organization

Pay and Benefits
12-112

 Pay level
 The relative position of an organization‘s incentives in
comparison with those of other firms in the same
industry employing similar kinds of workers
 Managers can decide to offer low, average or high
relative wages.
 High wages attract and retain high performers but raise
costs; low wages can cause turnover and lack of
motivation but provide lower costs.

Pay and Benefits

 Pay Structure CEO
 The arrangement of jobs
into categories based on VP VP VP
their relative importance
to the organization and
Director Director
its goals, level of skills,
and other characteristics. Dept
Manager

12-113

Pay and Benefits
12-114

 Benefits
 Legally required: social security, workers‘
compensation
 Voluntary: health insurance, retirement, day care
 Cafeteria-style benefits plans allow employees to
choose the best mix of benefits for them; can be hard
to manage.

ORGANIZATIONAL DEVELOPMENT

Organizational Development
 Performance Appraisal and Feedback
 Provides managers with the information they need to
make good human resources decisions about how to
train, motivate, and reward organizational members
 Feedback from performance appraisal serves a
developmental purpose for members of an
organization


Performance Appraisals
 Performance Appraisal
 The process of formally evaluating performance and
feedback to an employee

Two Purposes of Performance Appraisal
1. Evaluation—document and let people know how well they are
doing; judgmental role.
2. Development—identify how training and support can improve
performance; counseling role.


 Critical Incident Technique
 Keeps a log of a person‘s effective and ineffective job
behavior
 360 Degree feedback
 Includes superiors, subordinates, peers and even customers in
the appraisal process
 Multi-person Comparison
 Rates employees against each other
 Graphic Rating Scale
 Uses a checklist of characteristics or traits to evaluate
performance


 Behaviorally Anchored Rating Scale
Uses specific descriptions of actual behaviors to rate various levels of actual performance

quality workforce?
120

 Performance management systems ensure that—
 Performance standards and objectives are set.
 Performance results are assessed regularly.
 Actions are taken to improve future performance
potential.


quality workforce?
121

 Performance appraisal
 Formallyassessing someone‘s work accomplishments
and providing feedback.
 Purposes of performance appraisal:
 Evaluation— lets people know where they stand relative to
objectives and standards.
 Development— assists in training and continued personal
development of people.


Figure 12.4 Sample behaviorally anchored rating scale for
122 performance appraisal.


quality workforce?
123

 Graphic rating scales
 Uses checklists of traits or characteristics to evaluate
performance.

 Relatively quick and easy to use.

 Questionable reliability and validity.


quality workforce?
124

 Behaviorally anchored rating scales (BARS)
 Describes actual behaviors that exemplify various levels
of performance achievement in a job.
 More reliable and valid than graphic rating scales.
 Helpful in training people to master important job skills.


quality workforce?
125

 Critical-incident techniques

 Keeping a running log or inventory of effective and

ineffective behaviors.

 Documents success or failure patterns.


quality workforce?
126

 Multiperson comparisons
 Formally compare one person‘s performance with that
of one or more others.
 Types of multiperson comparisons:
 Rank ordering
 Paired comparisons
 Forced distributions


quality workforce?
127

 Alternatives to supervisory appraisal:
 Peer appraisal
 Occurs when people who work regularly and directly with a
jobholder are involved in the appraisal.
 Upward appraisal
 Occurs when subordinates reporting to the jobholder are involved in
the appraisal.
 360° feedback
 Occurs when superiors, subordinates, peers, and even internal and
external customers are involved in the appraisal of a jobholder‘s
performance.


Performance Appraisal and Feedback
12-128

 Performance Appraisal
 Theevaluation of employees‘ job performance and
contributions to their organization.
 Performance Feedback
 Theprocess through which managers share
performance appraisal information, give subordinates
an opportunity to reflect on their own performance,
and develop with subordinates, plans for the future.

Types of Performance Appraisal
12-129

 Trait Appraisals
 Assessing subordinates on personal characteristics that
are relevant to job performance.
 Disadvantages of trait appraisals
 Employees with a particular trait may choose not to use
that particular trait on the job.
 Traits and performance are not always obviously linked
 It is difficult to give feedback on traits.

12-130

 Behavior Appraisals
 Assesses how workers perform their jobs—the actual
actions and behaviors that exhibit on the job.
 Focuses on what a worker does right and wrong and
provides good feedback for employees to change
their behaviors.
 Results appraisals
 Managers appraise performance by the results or the
actual outcomes of work behaviors

12-131

 Objective appraisals
 Assesses performance based on facts (e.g., sales
figures).
 Subjective appraisals
 Assessments based on a manager‘s perceptions of
traits, behavior, or results.
 Graphic rating scales
 Behaviorally anchored rating scales (BARS)
 Behavior observation scales (BOS)
 Forced ranking systems

Question?
12-132

Which is the most effective type of performance
appraisal?
A. Trait appraisal
B. Behavior appraisal
C. Results appraisal
D. Objective appraisal

Subject Measures of Performance:
Graphic Rating Scale
12-133

Figure 12.5

Behaviorally Anchored Rating Scale
12-134

Figure 12.5

Behavioral Observation Scale
12-
135

Figure 12.5

Who Appraises Performance?
12-
136

Figure 12.6

Who Appraises Performance?
12-
137
 Self
 Self appraisals can supplement manager view.
 Peer appraisal
 Coworkers provide appraisal; common in team
settings.
 360 Degree
A performance appraisal by peers, subordinates,
superiors, and clients who are in a position to evaluate
a manager‘s performance

Effective Performance Feedback
12-
138

 Formal appraisals
 An appraisal conducted at a set time during the year
and based on performance dimensions that were
specified in advance
 Informal appraisals
 An unscheduled appraisal of ongoing progress and
areas for improvement

Effective Feedback Tips
12-
139

 Be specific and focus on behaviors or outcomes that
are correctable and within a worker‘s ability to
improve.
 Approach performance appraisal as an exercise in
problem solving and solution finding, not criticizing.
 Express confidence in a subordinate ability to
improve.
 Provide performance feedback both formally and
informally.

Effective Feedback Tips
12-
140

 Praise instances of high performance and areas of
a job in which a worker excels.
 Avoid personal criticisms and treat subordinates
with respect.
 Agree to a timetable for performance
improvements.


Retention And Career Development

 Career Development
 Manages how a person grows and progresses in their
career
 Career Planning
 The process of managing career goals and individual
capabilities with opportunities for their fulfillment

Human Resource Planning
12-142

 Human Resource Planning (HRP)
 Activities
that managers engage in to forecast their
current and future needs for human resources.

12-143

 Demand forecasts
 Estimates the qualifications and numbers of employees
the firm will need given its goals strategies.
 Supply forecasts
 Estimates the availability and qualifications of current
employees now and in the future, as well as the supply
of qualified workers in the external labor market.

12-144

 Outsourcing
 Using outside suppliers and manufacturers to produce
goods and services
 Using contract workers rather than hiring them.
 More flexible for the firm.
 Provides human capital at a lower cost.

12-145

 Problems with Outsourcing
 Loss of control over output; outsource contractors are
not committed to the firm.
 Unions are against outsourcing that has potential to
eliminate member‘s jobs.

I/O chapter 5

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