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Chapter 11 Managing Human Resource Systems

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Management 4th Edition written by Chuck Williams

Management 4th Edition written by Chuck Williams

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  • 1. Chapter 11 Prepared by Deborah Baker Texas Christian University Managing Human Resource Systems Management 4th Edition Chuck Williams
  • 2. What Would You Do?
    • Domino’s annual turnover is 158 percent, making consistency difficult
    • Unhappy customers may not do business again—and that hurts profits
    • It costs $2,500 to replace each hourly worker, and $20,000 to replace a store manager
    Domino’s Pizza Headquarters, Detroit, Michigan. How do you find qualified applicants? What do you do to encourage managers to stay? What would you do?
  • 3. The Human Resource Management Process Adapted From Exhibit 11.1 Recruiting Selection Attracting Qualified Employees Determining Human Resource Needs Human Resource Planning Compensation Employee Separation Keeping Qualified Employees Developing Qualified Employees Training Performance Appraisal
  • 4. Determining Human Resource Needs After reading these sections, you should be able to:
    • describe the basic steps involved in human resource planning.
    • explain how different employment laws affect human resource practice.
  • 5. Human Resource Planning 1 Supply and Demand of Human Resources Human Resource Information Systems
  • 6. Forecasting Demand and Supply
    • Internal forecasts
    • External forecasts
    • Direct managerial input
    • Best guess
    • Statistical / historical ratios
    Work Force Forecasting Forecasting Methods 1.1
  • 7. Forecasting Demand and Supply 1.1 Internal Factors Work Force Forecast External Factors
  • 8. Internal Forecast Factors
    • New positions
    • New equipment and technology
    • Eliminated positions
    • Terminations
    • Retirements
    • Resignations
    • Turnover
    • Transfers
    • Deaths
    • Promotions
    • Organization’s mission
    • Productivity of current employees
    • Skills/education of current employees
    1.1 Adapted from Exhibit 11.2
  • 9. External Forecast Factors
    • Demographics of labor supply
    • Geographic population shifts
    • Manufacturing-to service-to information-based economy shift
    • Economic conditions
    • Unemployment rate
    • Labor unions
    • Availability of applicants
    • Technological advances
    • Competitors
    • Growth of businesses
    Adapted from Exhibit 11.2 1.1
  • 10. Forecast Methods 1.1 Direct Managerial Input Best Guess Statistical/ Historical Ratios Based on projections of cash flows, expenses, or financial measures Based on managers’ assessment of current head count, plus a guess on relevant internal/external factors Based on statistical methods, such as multiple regression, in combination with historical data
  • 11. Human Resource Information Systems
    • Computerized employee information systems
      • Uses
        • transaction processing
        • employee self-service
        • decision support
    1.2
  • 12. Human Resource Information Systems HRIS Adapted from Exhibit 11.3 1.2 Work History Performance Appraisal Personal Data Educational Data Company Employment History Promotion Data
  • 13. Employment Legislation 2 Federal Employment Laws Adverse Impact and Employment Discrimination Sexual Harassment Laws
  • 14. Federal Employment Laws 2.1 Adapted from Exhibit 11.4 Equal Pay Act of 1963 Civil Rights Act of 1964 Age Discrimination in Employment Act of 1967 Pregnancy Discrimination Act of 1978 prohibits unequal pay for males and females doing similar work prohibits discrimination on basis of race, color, religion, gender, origin prohibits discrimination against persons age 40 and over prohibits discrimination in employment against pregnant women
  • 15. Federal Employment Laws (cont.) 2.1 Adapted from Exhibit 11.4 Americans with Disabilities Act of 1990 Civil Rights Act of 1991 Family & Medical Leave Act of 1993 prohibits discrimination on the basis of physical or mental disabilities strengthened the Civil Rights Act of 1964 permits workers to take up to 12 weeks of unpaid leave for pregnancy, etc. Adapted from Exhibit 11.4 Uniformed Services Employment & Reemployment Rights Act prohibits discrimination against those serving in the Armed Forces
  • 16. Adverse Impact and Employment Discrimination 2.2 Four-Fifths Rule Adverse Impact Disparate Treatment Intentional discrimination that results in equally qualified people being treated differently Unintentional discrimination that works to the disadvantage of member of protected groups Comparison of selection rates of a protected to a nonprotected group, to determine if adverse impact has occurred
  • 17. Sexual Harassment 2.3 Hostile Work Environment Quid Pro Quo unwelcome and demeaning sexually related behavior creates an intimidating and offensive work environment employee outcomes depend on whether an individual submits to sexual harassment
  • 18. Common Managerial Mistakes in Sexual Harassment Laws
    • That the victim and harasser must be of the opposite sex
    • That harassment can only occur between coworkers or supervisors and subordinates
    • That only victims can file complaints
    Assuming: 2.3
  • 19. Company Responsibilities
    • Respond immediately to make sure sexual harassment laws are followed
    • Write a clear, understandable sexual harassment policy
    • Establish clear reporting procedures
    • Be in compliance with federal, state, and local sexual harassment laws
    2.3
  • 20. Finding Qualified Workers After reading these sections, you should be able to:
    • explain how companies use recruiting to find qualified job applicants.
    • describe the selection techniques and procedures that companies use when deciding which applicants should receive job offers.
  • 21. Recruiting 3 Job Analysis and Recruiting Internal Recruiting External Recruiting
  • 22. Job Analysis and Recruiting 3.1
    • work activities
    • tools and equipment used to do the job
    • context in which the job is performed
    • personnel requirements for performing the job
    Information Collected by a Job Analysis
  • 23. Job Analysis and Recruiting Adapted From Exhibit 11.6 3.1 Job Description Job Specification HR Subsystems Recruiting Selection Training Performance Appraisal Separation Job Analysis
  • 24. Job Analysis and Recruiting 3.1 Job Description written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job Job Specification a written summary of the qualifications needed to successfully perform a job
  • 25. Internal Recruiting
    • A pool of applicants who already work for the company
    • “ Promotion from within”
    • Improves employee morale and motivation
    • Reduces employer time and cost
    • Job posting is the procedure for internal advertising
    • Career path is a planned sequence of jobs
    3.2
  • 26. Methods for External Recruiting
    • Advertising
    • Employee referrals
    • Walk-ins
    • Outside organizations
    • Employment services
    • Special events
    • Internet job sites
    3.3
  • 27. Selection Selection Tests Interviews Application Forms and R é sum é s References and Background Checks 4
  • 28. Topics Employers Should Avoid Adapted from Exhibit 11.7 4.1 1. Children 2. Age 3. Disabilities 4. Physical Characteristics 5. Name 6. Citizenship 7. Lawsuits 8. Arrest records 9. Smoking 10. AIDS/HIV
  • 29. Doing the Right Thing 4.1
    • Don’t Embellish Your R é sum é
    • Embellishing your résumé is wrong.
    • The information is legally binding— and misrepresenting information is breaking the law.
    • If what you put on your résumé feels wrong, don’t do it.
    • Don’t embellish. Tell the truth on your résumé.
    DOING THE RIGHT THING
  • 30. References and Background Checks
    • References or background checks are not always provided by previous employers
    • Making background checks more effective
      • dig deeper for more information
      • get permission in writing
      • document all checks
      • consider hiring private investigators
    4.2
  • 31. Selection Tests 4.3 Work Sample Biographical Data Personality Assessment Centers Cognitive Ability Specific Ability Selection Tests
  • 32. Doing the Right Thing 4.3
    • Don’t Use Psychics, Lie Detectors, or
    • Handwriting Analysis to Make HR Decisions
    • Companies may use these methods, but they don’t work
    • There is no scientific evidence that handwriting analysis works
    • Lie detectors are not accurate
    • Polygraphs are not allowed
    • Stay away from fads and use reliable procedures
    DOING THE RIGHT THING
  • 33. Interviews
    • Unstructured Interviews
      • free-flow of questions
    • Structured Interviews
      • interviewer uses standard set of prepared questions
    • Semi-structured Interviews
      • some structure combined with interviewer judgement
    4.4
  • 34. Questions in Structured Interviews 4.4 Situational Questions Behavioral Questions Background Questions Job-Knowledge Questions
  • 35. Guidelines for Conducting Effective Structured Interviews
    • Identify and define the KSAO needed for job
    • Develop key behavioral questions for each KSAO
    • For each KSAO , develop a list of things to look for in applicant’s responses
    Planning the Interview KSAO: Knowledge, skills, abilities, and other characteristics 4.4 Adapted from Exhibit 11.10
  • 36. Guidelines for Conducting Effective Structured Interviews
    • Create a relaxed interview atmosphere
    • Review the applicant’s information
    • Allocate adequate time
    • Put the applicant at ease
    • Tell the applicant what to expect
    • Obtain job-related information (refer to KSAO)
    • Describe the job and organization
    Conducting the Interview 4.4 Adapted from Exhibit 11.10
  • 37. Guidelines for Conducting Effective Structured Interviews
    • Review your notes immediately
    • Evaluate the applicant on each KSAO
    • Determine each applicant’s probability of success and make a hiring decision
    After the Interview 4.4 Adapted from Exhibit 11.10
  • 38. What Really Works Cognitive Ability Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 76% Work Sample Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 77% Using Selection Tests to Hire Good Workers
  • 39. What Really Works Assessment Centers 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 69% Structured Interviews 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 76% Using Selection Tests to Hire Good Workers
  • 40. What Really Works Using Selection Tests to Hire Good Workers Cognitive Ability + Work Sample Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 82% Cognitive Ability + Integrity Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 83% Cognitive Ability + Structured Interviews 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success 82%
  • 41. Developing Qualified Workers After reading these sections, you should be able to:
    • describe how to determine training needs and select the appropriate training methods.
    • discuss how to use performance appraisal to give meaningful performance feedback.
  • 42. Training 5 Training Needs Training Methods Training Evaluation
  • 43. Determining Training Needs 5.1 Conducting Needs Assessments Identify Performance Deficiencies Test Employee Skills and Knowledge Survey Employers and Managers Listen to Customer Complaints
  • 44. Work Keys Needs Assessment Adapted From Exhibit 11.11 5.1 Step 1 Step 2 Step 3 Job Analysis Test Employee Skills Compare Employee Skills to Required Skills
  • 45. Work Keys Needs Assessment Exhibit 11.11 5.1
  • 46. Training Methods Adapted From Exhibit 11.12 5.2 Impart Information and Knowledge Develop Analytical and Problem-Solving Skills Practice, Learn, or Change Job Behaviors All of the above
    • films and videos
    • lecture
    • planned readings
    • case studies
    • coaching and mentoring
    • group discussions
    • on-the-job training
    • role-playing
    • simulations and games
    • vestibule training
    • Computer-based learning
  • 47. Evaluating Training Reactions Learning Behavior Results how satisfied trainees were with the program how much employees improved their knowledge or skills how much employees actually changed their on-the-job behavior how much training improved job performance 5.3
  • 48. Computer-Based Training
  • 49. Performance Appraisal 6 Measuring Job Performance Sharing Performance Feedback
  • 50. Measuring Job Performance: Common Rating Errors
    • Central tendency
      • all workers are rated as being “average”
    • Halo error
      • all workers are rated as performing at the same level in all parts of their jobs
    • Leniency error
      • all workers are rated as performing at a high level
    6.1
  • 51. Measuring Job Performance Improving Job Performance Measurements Improve Performance Appraisal Measures Train Performance Raters 6.1
  • 52. Improving Performance Appraisal Measures
    • Objective performance measures
      • quantifiable outcomes (output, scrap, waste, sales, customer complaints, or rejection rates)
    • Subjective performance measures
      • trait rating scales
      • behavioral observation scales (BOS)
    6.1
  • 53. Subjective Performance Appraisal Scales 6.1 Exhibit 11.13
  • 54. Rater Training
    • Teach raters how to avoid errors
    • Improve rating accuracy
    • Video training and role playing often used
    6.1
  • 55. Sharing Performance Feedback
    • Managers often fail to effectively give employees performance feedback
    • 360-degree feedback
      • boss, subordinates, peers, and the employee
      • best for employee development
    6.2
  • 56. Performance Feedback 6.2
    • Separate developmental feedback from administrative feedback
    • Base performance appraisal feedback sessions on self-appraisals
    • Have people discuss the feedback they received with executive coaches or the people who provided it
    Recommendations for Sharing Performance Feedback
  • 57. Performance Feedback 6.2 Adapted From Exhibit 11.14
    • Overall progress
    • Problems encountered in meeting job requirements
    • Opportunities to improve performance
    • Long-range plans and opportunities
    • General discussion of possible plans and goals for the coming year
    What to Discuss in Performance Appraisal Feedback Sessions
  • 58. Keeping Qualified Workers After reading these sections, you should be able to:
    • describe basic compensation strategies and explain how they affect human resource practice.
    • discuss the four kinds of employee separations: termination, downsizing, retirements, and turnover.
  • 59. Compensation 7 Compensation Decisions Employment Benefits
  • 60. Compensation Decisions 7.1
    • Job evaluation
    • Piecework
    • Commission
    • Profit sharing
    • Employee stock ownership plans
    • Stock options
    • Hierarchical
    • Compressed
    Pay Level Pay Variability Pay Structure
    • Cafeteria plans
    • Flexible plans
    • Payroll deductions
    Adapted from Exhibit 11.15 Employment Benefits
  • 61. Pay-Level Decisions
    • Job evaluation is used to determine the worth of jobs
      • pay the “going rate”
    • Should workers be paid at, below, or above current market wage?
      • attracts a larger, more qualified pool of applicants
      • increases the rate of job acceptance
      • decreases the time it takes to fill positions
      • increases the time that employees stay
    7.1
  • 62. Pay-Variability Decisions
    • Piecework
    • Commission
    • Profit sharing
    • Employee stock ownership plans (ESOPs)
    • Stock options
    7.1
  • 63. Pay-Structure Decisions
    • Hierarchical pay structures
      • big differences from one pay level to another
      • work best for independent work
    • Compressed pay structures
      • fewer pay levels with smaller differences in pay between pay levels
      • work best for interdependent work
    7.1
  • 64. Employment Benefits
    • Compensation other than direct wages
    • Employee benefits are legally mandated:
      • Social Security
      • worker’s compensation
      • unemployment insurance
    • Cafeteria benefit plans
      • employees can select from optional benefits
    • Payroll deductions
    7.2
  • 65. Employee Separations 8 Terminations Downsizing Turnover Retirements
  • 66. Terminating Employees
    • Often mismanaged
    • Minimize problems in firing employees
      • firing should not be the first option
      • firing should be for a good reason
        • “ employment at will”
        • wrongful discharge
      • firing should be done in private
    8.1
  • 67. Downsizing
    • Provide clear reasons for the layoffs.
    • Get information to avoid laying off employees with critical skills.
    • Training managers in how to tell employees.
    • Give employees the bad news early in the day.
    • Provide outplacement services and counseling.
    • Communicate with survivors.
    8.2 Adapted From Exhibit 11.16
  • 68. Retirement
    • Offer financial benefits to encourage employees to retire
    • Are attractive to many employees
    • Are difficult to predict which or how many employees will use the program
    • May cause the company to lose valuable employees
    Early Retirement Incentive Programs… 8.3
  • 69. Employee Turnover
    • Loss of employees who voluntarily choose to leave the company
    • Functional turnover (encouraged)
      • the loss of poor-performing employees
    • Dysfunctional turnover (discouraged)
      • the loss of high performing employees
    8.4

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