Potential Employees Retired Employees Recruiting Hiring Education And training Termination Benefit administration ACTIVITIES OF HRM DATA MANAGEMENT EMPLOYEES THE FIRM
Work force planning Recruiting subsystem Work force management Compensation subsystem Benefit subsystem Environmental Reporting HRM database Accounting Information system Human Resources Research subsystem Human Resources Intelligence system Users Input subsystems Output subsystems SUBSYSTEMS OF HRM ENVIRONMENTAL SOURCES INTERNAL SOURCES
Human Resource Management Human Resource Management (HRM) concerns with getting, training, motivating and keeping competent employees Overview: definition and significance
Common Factors to all management practices Environmental Factors Affecting HRM Laws and government regulations Labor Unions Overview: environmental factors
The Legal Environment of HRM Affirmative Action Employment Training Retention Overview: environmental factors
Human Resource Management Process Planning Recruitment and Downsizing Selection Orientation Training and Development Performance Appraisals Safety and Health Compensation and Benefits HRM process Competent High-Performing Workers
Human Resource Planning Making a Future Assessment Making a Current Assessment Designing a Future Program HRM process: planning
HRM process: recruitment and downsizing Traditional Recruiting Sources Internal Searches Employee Referrals Employee Leasing Temp Services Employment Agencies Advertisements School Placement
Firing Layoffs and Attrition Transfers Reduced Workweeks Job Sharing Early Retirements Downsizing Options HRM process: recruitment and downsizing
Fundamentals of Management: 6- Gao Junshan, UST Beijing The proven relationship between a selection device and some relevant criterion The degree to which a selection device measurers the same thing consistently Property of Selection Devices HRM process: selection Validity Reliability
The Effectiveness of Interviews <ul><li>Prior knowledge about an applicant </li></ul><ul><li>Attitude of the interviewer </li></ul><ul><li>The order of the interview </li></ul><ul><li>Negative information </li></ul><ul><li>The first five minutes </li></ul><ul><li>The content of the interview </li></ul><ul><li>The validity of the interview </li></ul><ul><li>Structured versus unstructured interviews </li></ul>HRM process: selection
Employee Orientation <ul><li>Smooth Insider-Outsider Transition </li></ul><ul><li>Familiar with the job and its environment </li></ul><ul><li>Reduce initial anxiety </li></ul>Fundamentals of Management: 6- Gao Junshan, UST Beijing HRM process: orientation
Employee Training What deficiencies, if any, do jobholders have in terms of skills, knowledge, or abilities required to exhibit the essential and necessary job behaviors? What behaviors are necessary for each jobholder to complete his or her job duties? What tasks must be Completed to achieve Organizational goals? What are the Organization‘s Strategic goals? Is there a need for training? HRM process: training and development
HRM process: training and development Training Methods Job Rotation Simulation Exercises Classroom Lectures Understudy Assignments Vestibule Training Films and Videos
Performance Management <ul><li>Performance management system is a process of </li></ul><ul><ul><li>Establishing standards and </li></ul></ul><ul><ul><li>Evaluating performance </li></ul></ul><ul><li>The purpose of performance management is to </li></ul><ul><ul><li>Arrive at objective human resource decisions and </li></ul></ul><ul><ul><li>Provide documentation to support any personnel actions </li></ul></ul><ul><li>Evaluation of the employees performance can be done by </li></ul><ul><ul><li>Comparing against some set of performance standards </li></ul></ul><ul><ul><li>Comparing employees with one another </li></ul></ul><ul><ul><li>Measuring the work on the bases of preset objectives </li></ul></ul>Fundamentals of Management: 6- Gao Junshan, UST Beijing HRM process: performance management
Fundamentals of Management: 6- Gao Junshan, UST Beijing Performance Appraisal Methods HRM process: performance management Critical Incidents Graphic Rating Scales Multiperson Comparison Written Essay BARS 360 o MBO
Employee Counseling Discipline Actions Performance Problems on the Job HRM process: performance management
Determining Benefits Determining Pay Levels Administration of Employee Compensation HRM process: compensation and benefits
Factors Influencing Pay Level <ul><li>Knowledge, skills, abilities </li></ul><ul><li>Authority and responsibility </li></ul><ul><li>Nature of the business </li></ul><ul><li>The environment </li></ul><ul><li>Geographic location </li></ul><ul><li>Performance levels </li></ul><ul><li>Seniority of the employee </li></ul><ul><li>Compensation philosophy </li></ul>HRM process: compensation and benefits
Employee Benefits Social security Unemployment compensation Life and disability insurance Paid time off Retirement programs Health insurance HRM process: compensation and benefits
Workforce Diversity Sexual Harassment Current issues: Workforce diversity, sexual harassment Current HRM Issues
Family-Friendly Benefits Unions and Management Current HRM Issues Current issues: Family-friendly benefits, union and management
Workplace Violence Survivors of Layoffs Current HRM Issues Current issues: Workforce violence, survivors of layoffs
Outsourcing Contingent Workforce Current HRM Issues Current issues: Outsourcing and use of contingent workforce (See chap 2 p66)
HUMAN RESOURCES MANAGEMENT <ul><li>Set of Organizational activities directed at attracting, developing, and maintaining an effective workforce </li></ul><ul><li>The process of acquiring, training, terminating, developing, and properly using the human resources in an organization </li></ul>
The HRM Process <ul><li>Human Resource Planning: Forecasting Demand Supply and Job Analysis </li></ul><ul><li>Staffing the Organization: Recruitment, Selecting, and Orientation </li></ul><ul><li>Developing the Workforce: Training and Performance Appraisal </li></ul><ul><li>Compensation and Benefit: Wages and Salaries, Incentive and Benefit Program </li></ul>
Human Resource Planning <ul><li>Job Analysis – determining the tasks, the skills, abilities and responsibilities needed to perform the job </li></ul><ul><li>Job Description – a statement about a job’s duties </li></ul><ul><li>Job Specification – A statement of the human qualification needed to perform a job </li></ul>
Human Resource Planning <ul><li>Forecasting the demand - estimating the personnel needs of organization </li></ul><ul><li>Forecasting the supply of labour: </li></ul><ul><li>Internal Supply </li></ul><ul><li>External Supply </li></ul><ul><li>Matching Demand with Supply </li></ul>
Recruiting <ul><li>Recruitment – Steps taken to staff an organization with the best qualified people </li></ul><ul><li>Sources: </li></ul><ul><li>Internal recruiting </li></ul><ul><li>External recruiting from worker unions, university, employment agencies </li></ul>
Selection and Orientation <ul><li>Selection – evaluating and choosing the candidates. Selection Process: application form, Tests, and Interview </li></ul><ul><li>Orientation – A procedure for providing new employees with basic background information about the firm </li></ul>
Training and Development <ul><li>Training – supplying the skills, knowledge, and attitudes needed by employees to improve their abilities to perform their job </li></ul><ul><ul><li>On-the Job Training </li></ul></ul><ul><ul><li>Off-the Job Training </li></ul></ul><ul><li>Development – preparing someone for the new and greater challenges and more demanding job </li></ul>
Performance Appraisal <ul><li>Performance Appraisal – appraising the employee’s performance in relation to job standards and then providing feedback to the employee </li></ul><ul><li>Methods: </li></ul><ul><li>Subjective Performance appraisal – performance criteria and rating scale are not defined </li></ul><ul><li>Objective Performance Appraisal – performance criteria and the method of measurement are specifically defined </li></ul>
The Flow <ul><li>Definition </li></ul><ul><li>Approaches and their Implications </li></ul><ul><li>Functions </li></ul><ul><li>Emerging Roles </li></ul><ul><li>Challenges </li></ul><ul><li>Strategic HR Management </li></ul><ul><li>In a Nutshell </li></ul>05/28/10 Free template from www.brainybetty.com
Definition <ul><li>Human resource management is the function performed in an organization that facilitates the most effective use of people(employees) to achieve organizational and individual goals </li></ul>05/28/10 Free template from www.brainybetty.com
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Human Resources Approach <ul><li>Organization goal & needs of employee are capable of existing in harmony </li></ul><ul><li>Employees are asset for organization </li></ul><ul><li>Organization should create contributive work environment to reap maximum benefit </li></ul>05/28/10 Free template from www.brainybetty.com
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Human Resource Planning <ul><li>Present and future manpower requirements </li></ul><ul><li>Net human resource requirements </li></ul><ul><li>Mould, change and develop employees to meet future organizational requirements </li></ul><ul><li>Attract and acquire human resources from the market </li></ul>
Emerging Role of Human Resource Management <ul><li>It is the competence and attitude of the human resource that can make or break a business. </li></ul>05/28/10 Free template from www.brainybetty.com
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The heart of the human resource management system is a six step process: job analysis, personnel planning, interviewing, testing, selecting, and training and development. It begins with planning the company’s personnel requirements and then recruiting applicants to fill them. This process is also referred to as the manager’s staffing function , the function that involves actually filling open organizational positions.
Job analysis is the procedure used to determine the duties of the jobs and the kinds of people (in terms of skills and experience) who should be hired for them. These data are then used to develop a job description —a document that identifies a particular job, provides a brief job summary, and lists specific duties and responsibilities of the job. Job specifications are the qualifications (traits, skills, and experiences) required to accomplish a job. To determine the duties and functions of a job, a job analysis questionnaire is often used. Completing this questionnaire requires employees to provide detailed information on what they do: such as stating their main duties in their own words, describing the conditions under which they work, and listing any permits or licenses required to perform the duties assigned to their positions. Supervisors or HR specialists may then review the information, question the employees, and decide exactly what each job-description should entail. Job analysis is critical to personnel planning : the process of determining the personnel needs of the organization, as well as the methods that will be used to fill those needs. Most large companies use computers to expedite personnel planning; however, personnel planning does not require a computer-based system, especially in smaller firms. Employers can use personnel replacement charts to keep track of inside candidates for their most important positions. An alternative is the position replacement card which shows possible replacements as well as present performance, promotion potential, and training required by each possible candidate.
Filling open positions with current employees has pros and cons. On the plus side, employees see that competence is rewarded, so morale and performance may be enhanced. Inside candidates are known quantities in terms of skills and performance, and may already be committed to the company and its goals. On the down side, current employees who apply for jobs and do not get them may become demoralized. Inbreeding is another drawback. Advertising is a major way to attract applicants. The medium chosen depends on the type of job and how wide a net the company believes it has to use. The business of an employment agency is to match applicants with positions. There are three types of employment agencies : governmental, not-for-profit, and privately owned. Many employers hire contingent workers from temporary help agencies to supplement their permanent employee base. About 20% of all new jobs created in the United States involve the contingent workforce. Executive recruiters are agencies retained by employers to look for top management talent, usually in the $70,000 and up category. Particularly for hourly workers, walk-ins (people who apply directly at the office) are a major source of applicants. Some organizations encourage walk-ins through employee referrals by announcing openings or requesting referrals in newsletters or posting them on a bulletin boards or intranets. Employers send representatives to college campuses to pre-screen applicants and create an applicant pool. College recruiting is an important source of management trainees, entry-level employees, and professional and technical workers. Recruiting a diverse workforce is not just socially responsible. It is a necessity, given the rapid growth of workforce diversity . This means taking special steps to recruit older workers, minorities, and women.
Employee selection is important. As a manager, your job performance always hinges on the performance of your subordinates. The best time to screen out undesirables is before they have their foot in the door, not after. Screening applicants is also expensive, so it is best to do it right the first time. After a pool of candidates has been developed, the next step in the selection process requires the use of application forms . These forms request verifiable historical data from applicants, such as education, work history, and hobbies. Testing is common in the workplace. An American Management Association (AMA) survey of 1,085 companies revealed that 45% of them tested applicants for basic skills. Another AMA survey revealed that 38.6% of the companies performed psychological testing on job applicants. Both before and after any testing occurs, several interviews are usually in order. The interview is probably the single most widely used selection device. The next two slides offer guidelines for interviewers and interviewees.
A manager can boost the effectiveness of selection interviews by following sound procedures like these: Plan the interview . Begin by reviewing the candidate’s application form and résumé, and note his or her strengths or weaknesses. Review the specifications of the job, and start the interview with a clear picture of the traits of an ideal candidate. Either use a structured form or write out questions in advance. Keep a record of the interview and review it before making a decision. Establish rapport . Start the interview by putting the person at ease. Empathize with the applicant. Ask questions . Try to follow the structured form or the questions you wrote in advance. Don’t just ask for general statements. Get specific information, too. Close the interview . Leave time to answer any questions the candidate may have, and, if appropriate, to promote your firm. Try to close on a positive note. If the candidate looks promising, tell him or her what the next step will be. Rejections should me made diplomatically. Review the interview . After the candidate leaves, review your notes while the interview is still fresh in your mind. Reviewing will help you to minimize common interviewing errors, such as snap judgments and negative emphasis.
Background investigations and reference checks . About 95% of corporations in the United States check into an applicant’s background and references. There are two reasons for conducting reference and/or background checks: to verify factual information and to discover damaging information. Preemployment information services . Computer databases have made it easier to check background information about candidates. Employers are increasingly turning to these information services to help them make selection decisions. Honesty testing . Paper-and-pencil honesty testing has become a mini industry. These tests ask questions aimed at assessing a person’s tendency to be honest. Health exams . A physical examination and drug screening are two of the final steps in the selection process. By identifying health problems, physical exams can reduce absenteeism, detect communicable diseases, and minimize accidents. Because substance abuse is a serious problem in the workplace, more employers are including drug screening as part of the selection process.
Employee orientation means providing new employees with basic information about the employer. In many companies, new workers receive employee handbooks. Orientation familiarizes them with co-workers, working conditions, or payroll and benefits, for example, and reduces the “first-day jitters” that are usually associated with starting a new job. Orientation is usually followed by a training program to ensure that new workers have the basic knowledge needed to do their jobs. Traditional methods include on-the-job training, lectures, audio-visual tools, and computers.
Appraisals help managers give feedback to workers and reward excellence or correct performance deficiencies. Managers can use standard appraisal forms or flexible techniques that focus on job-related outcomes and behaviors. Employee compensation refers to all work-related pay or rewards. A fixed salary or hourly wage is the centerpiece of most workers’ pay. A financial incentive is contingent upon performance—such as commissions paid on products or services that are sold or piecework incentives paid for each item a worker produces. Employee benefits are any supplements to wages or pay. Under federal and state law, workers are entitled to unemployment insurance and worker’s compensation. Companies may provide hospitalization, sick-leave, vacations, and/or severance pay. A promotion rewards an employee’s efforts by moving that person to a job with increased authority and responsibility. Downsizings and consolidations, however, have reduced the ranks of middle management, the jobs to which worthy employees were usually promoted. A grievance is a complaint that an employee lodges against an employer, usually regarding wages, hours, or supervisory behavior. Supervisors sometimes have to discipline workers , usually because some rule or procedure was violated. Termination is the involuntary separation of a worker’s employment with a firm. It is the most dramatic disciplinary step an employer can take toward an employee.
Equal employment laws are enforced by the Equal Employment Opportunity Commission. Title VII of the 1964 Civil Rights Act bars discrimination based on race, color, religion, sex, or nation origin. Other laws are the Equal Pay Act of 1963, the Pregnancy Discrimination Act of 1978, and the Americans with Disabilities Act of 1990. Affirmative Action requires employers to take specific actions to recruit, hire, promote, and compensate members of protected groups in order to eliminate the present effects of past discrimination. Managers should keep two facts in mind concerning sexual harassment . First, in addition to being unfair and detestable, it is illegal. Second, it is a widely occurring problem. Therefore, companies should issue and enforce a strong anti-sexual harassment policy and take complaints seriously. The Occupational Safety and Health Act sets safety and health standards that apply to most U.S. workers. So companies should issue and enforce strong safety programs. Unions take part in labor-management relations . The Wagner Act outlaws unfair labor practices against union members and the Taft-Hartley Act prohibits unfair labor practices by unions against employers. Other employment laws are the Fair Labor Standards Act which sets a minimum wage, child-labor, and overtime pay rules; and the Employee Polygraph Protection Act of 1988 which outlaws almost all uses of a “lie-detector” for employment purposes.
Whether or not an organization provide HRM support activities, every managers is involved with human decisions in his/her units. Large organization usually groups a number of activities under the label of Human Resource Management Not all managers have HRM staff support,especially in small businesses. Some organization even outsourcing their HRM activities. Success of most organizations depends on finding and keeping the right personals as well as helping them sustain a high level of performance. Human resource management (HRM) is the management function that is concerned with getting, training, motivating, and keeping competent employees. While some large organizations have Human Resources Departments, not only small-business managers but also many managers who work for large companies must make human resource decisions: recruiting candidates, reviewing application forms, interviewing applicants, inducting new employees, appraising employee performance, and providing training.
Factors that affect all management practices External: Globalization, WTO, Diversity of labor forces, … Internal: Reengineering, Restructuring, Downsizing, … Laws and government regulations Law of labor, Social security system, Occupational and professional qualification, Equal employment and protection of employees Examples on page 187: “Prohibit …”, “Requires …”, “Permits …”, “Gives …”, “Reaffirms …” Labor Unions Collective bargaining agreement may include such things as wages, work hours, criteria for promotion and lay-offs, training eligibility, and disciplinary practices
Since the middle of the 1960s, the federal government has greatly expanded its influence over HRM by enacting a wealth of regulations and laws. As a result, employers must ensure that equal employment opportunities exist for job applicants and current employees. Affirmative action: the programs adapted by many organizations to ensure that decisions and practices enhance the employment, promotion, and retention of members of protected groups To balance the “shoulds and should-nots” of these laws . As a result, managers are not completely free to choose whom they hire, promote, or fire.
To hire competent, high-performing employees who can sustain their performance over the long-term, an organization should follow an eight-step human resource management process (see the above slide). By our early definition the Human resource management (HRM) is the management function that is concerned with getting, training, motivating, and keeping competent employees, or getting and keeping right number of right people in right place at right time: The first three steps serves to getting the right number of right people in right place at right time The other steps concerns with keeping the right number of right people in right place at right time. These new employees must be adapted to the organization (orientation) and their job skills must be kept current (training and development). The last steps in the HRM process are performance appraisals, compensation and benefits, and safety and health. These elements are used to identify employment goals, correct performance problems, and promote sustained high-level performance. .
Human Resource Planning (employment panning in a narrow sense) translate the organization’s mission and objectives into a personnel plan that allows the organization to achieve its goals. The employment planning is based on two things: Assessing current human resources Management should begin by generating a human resource inventory to assess what talents and skills are currently available in the organization. The next step is a job analysis to define the jobs within the organization and on-the-job behaviors that will promote success. Information gathered during job analysis allows management to compose the following: a written job description that states what a jobholder must do, plus how and why it is done; a job specification that states the minimum knowledge, skills, and abilities that a worker must possess to perform the job successfully. These documents can assist managers to recruit and select appropriate new hires. Assessing future human resource needs Depending on the organization’s objectives and strategies, demand for human resources is contingent upon demand for the organization’s products or services and on the levels of productivity. After estimating total revenue, management can estimate the number and kinds of human resources needed to obtain those revenues. In some case the situation may be reversed, …… After it has assessed current capabilities and future needs, management can estimate future human resources shortages and over-staffing . Then, it can develop a program to match these estimates with forecasts of future labor supply.
Recruitment is the process of locating, identifying, and attracting capable applicants. On the other hand, if employment planning indicates a surplus, management will initiate downsizing or layoff activities. Candidates can be found by using several sources, many companies now are finding new employees on the World Wide Web. The source that is used should reflect the local labor market, the type or level of position, and the size of the organization. Are certain recruiting sources better than others? See comparison on page 190. Employee referrals can produce the best applicants for two reasons. First , current employees screen applicants before referring them. Second , current employees believe that their reputations with the firm will be reflected in the candidates that they recommend; so, they reflect only those who they believe will not make them look bad. Employee referrals, however , may not generate the diversity of applicants required by EEOC laws.
In the past decade, most large U.S. businesses, as well as many government agencies and small businesses, have been forced to shrink the size of their workforce or restructure their skill composition. Downsizing has become a relevant means of meeting the demands of a dynamic environment. The figure above presents the following major downsizing options: Firing is permanent involuntary termination. Layoffs are temporary involuntary termination. Attrition is not filling openings creating by voluntary resignations or retirement. Transfers involve moving employees either laterally or downward. Reduced workweeks require employees to work fewer hours per week, share jobs, or work part time. Early retirements provide incentives to more senior employees for retiring before their normal retirement date. Job sharing means that employees share one full-time position.
When a selection device measures the same thing consistently, it exhibits reliabilit y . To be effective predictors, selection devices must possess and acceptable level of consistency. If a selection device contains a proven relationship between the selection device and some relevant criterion it demonstrates validity . The burden is on management to verify that any selection device it uses to differentiate applicants is related to job performance.
Typical written tests include tests of intelligence, personality, aptitude, ability, interest, and integrity. The popularity of written tests has run in cycles: They were widely used for twenty years after WWII. Beginning in the late 1960s, however, they fell into disfavor. They were frequently characterized as being discriminatory. Furthermore, many organizations could not validate that their written tests were job related. Since the 1980s, written tests have made a comeback for two reasons: the belief that properly designed written tests could reduce the likelihood of making poor hiring decisions and the fact that the cost of developing and validating written tests had fallen. Studies show the evidence of written tests of intellectual ability, spatial and mechanical ability, perceptual accuracy, and motor ability are moderately valid predictors for semiskilled and unskilled operative jobs. Intelligence tests are reasonably good predictors for supervisory positions. Based on job analysis data, performance-simulation tests meet the requirement of job relatedness better than do written tests. Work sampling and assessment centers are the two best known types. Because content is essentially identical to job content, performance simulation tests should minimize allegations of employment discrimination. Moreover, because of the nature of their content and the methods used to determine content, well-constructed performance-simulation tests are valid predictors. Interview is an almost universal selection device, few people ever get a job without undergone one or more interviews. It can be reliable and valid selection tools but too often is not. Only when interviews are structured and well organized and when interviews are held to relevant questions interviews are effective predictors. The interview can exert a disproportionate influence on the selection decision. Therefore, the person with the best interview skills often gets the job, even though he or she may not be the most qualified. But, interviews are valuable for assessing an applicant’s intelligence, level of motivation, and interpersonal skills. Unstructured interviews are conducive to interviewer biases: favoring applicants who share their values, giving undue weight to negative information, and allowing the order in which applicants are interviewed to influence evaluations.
Structured interviews provide standardized sets of questions, uniform methods of recording information, and standardized ratings of the qualifications of applicants . If interviews are not well structured and standardized, they can be biased. Factors affect effectiveness of interviews Prior knowledge about the applicant will bias the interviewer. Interviewers hold stereotypes about what represents “good” applicants. Interviewers favor applicants who share their own attitudes. The order in which applicants are interviewed affects evaluations. Negative information is given unduly high weight. Interviewers determine an applicant’s suitability in the first five minutes of the interview. Interviewers forget much of an interview’s content within minutes after it has been ended. Interviews are most valid in determining an applicant’s intelligence, motivation, and interpersonal skills. Structured, well organized interviews are more effective than those that are loosely organized.
Every job applicant acquires, during the hiring process, a set of expectations about the company and the job for which he or she is interviewing. When the information an applicant receives is excessively inflated, several negative consequences can occur. First , mismatched applicants are less likely to withdraw from the application process. Second , because inflated information builds unrealistic expectations, new employees are less likely to become quickly dissatisfied and prematurely resign. Third , new hires are prone to disillusionment and reduced commitment to the organization when they face the unexpected harsh realities of the job. A realistic job preview (RJP) can increase job satisfaction among employees and reduce turnover. The RJP should include both positive and negative information about the job and the company. Doing so can ensure that the applicants are well-matched to the jobs for which they are being considered and that their expectations about life on the job are realistic. As a result, those who are hired should be more committed to the organization and less likely to become problem employees.
Besides having the requisite knowledge, skills, and abilities to perform on the job, new hires must be acclimated to the organization’s culture (orientation) and trained to do the job (training). Three levels of orientation Job orientation Work unit orientation Organizational orientation The major objectives of employee orientation are to reduce the anxiety level that all new employees feel; to familiarize them with the job, the work unit, and the organization; and to facilitate the outsider-insider transition. Successful orientation maximizes new hire on-the-job success and minimizes turnover.
Employee training seeks a relative permanent change in employees such that their ability to perform on job improves, thus it s a learning process that involves changing skills, knowledge, attitudes or behavior. 3 quarters of airline accidents, such as collisions,crashes or other mishaps, resulted from errors by pilots or air traffic controllers or inadequate maintenance, only one forth of them are due to weather or structural failures. US business firms spend over 30 billion a year on formal courses and training programs, Motorola claims they receive $30 increase of productivity for every dollar spend on training and 139 percent increase in sales productivity. It is a precise the same type analysis managers use to determining the training needs as the did when developing an organization structure, only now the focus is the people Managers can be alerted to training needs by numerous signals,for instance, Productivity related signals like decreases in output and quality or increases in accidents; and, Future elements in jobs such as technological breakthroughs and other changes in the workplace.
Most training takes place on the job. Such training is convenient and cost effective. But, on-the-job training can disrupt the workplace, and some skills are too complex to learn on the job. In such cases, training should take place outside of the work setting. Popular on-the-job methods include job rotation and understudy assignments. Job rotation uses lateral transfers to allow employees to work at different jobs. New employees frequently learn their jobs from a seasoned veteran. In the trades, this is called an apprenticeship , in white-collar jobs, an understudy assignment . Both methods can help workers learn technical skills. Popular off-the-job methods include . Classroom lectures are well suited for conveying specific information. Films and videos can demonstrate skills not easily illustrated by other methods. Simulation exercises , such as case analyses, experiential exercises, role playing, and group interaction are excellent for teaching interpersonal and problem-solving skills. Vestibule training allows employees to learn their jobs on the same equipment they will be using at work. Training process start from identifying training needs and then planning and designing the training program, and followed implementations, but that is not be the end of the whole process without the evaluation. Generating a new training program is easy. But if the training effort is not evaluated, any employee-training efforts can be rationalized. Training programs are typically evaluated by participants or managers . While their reactions are easy to obtain, they are often not valid, because their comments may be influenced by factors that have little to do with the effectiveness of the training—difficulty, entertainment value, or the personality characteristics of the instructor. Training must also be evaluated in terms of how much the participants learned, how well they are using their new skills on the job, and whether the training program achieved its desired results.
Written essays that describe an employee’s performance and suggestions for improvement require no complex forms or extensive training. But a good or bad appraisal may depend as much on the writing skill of a manager as on the actual performance of an employee. With the critical incidents method, the appraiser writes down what an employee did that was especially productive or counterproductive. The key is to cite specific behaviors. With graphic rating scales , performance factors are listed such as quantity and quality of work, depth of knowledge, or initiative. The appraiser then rates each factor on an incremental scale. This method can not provide the depth of information of essays or critical incidents, but it is less time consuming to develop and administer, and yields results that can be quantified. Behaviorally Anchored Rting Scales BARS combine the critical incidents and graphics rating scale approaches. The appraiser rates employees on items along a continuum. The points along the scale are examples of actual on-the-job behavior rather than general descriptions or traits. Multiperson comparisons are relative measuring devices. Group order ranking requires the rater to place employees into a particular classification, such as the top one-fifth. Individual ranking orders employees from best to worst. Paired comparisons rank each employee with all other employees and rates each as either the weaker or superior member of the pair. With MBO , employees are evaluated by how well they accomplish a specific set of objectives that have been determined to be critical in the successful completion of their jobs. Because MBO emphasizes ends rather than means, this method allows managers the to choose the best path for achieving their goals. A 360-degree appraisal seeks feedback for the person being rated from a variety of sources: such as peers, supervisors, and customers. Research shows that 360-degree appraisals offer more accurate feedback, empower employees, reduce subjective factors in evaluation, and develop leadership in an organization.
If for some reason an employee is not not meet his or her performance goals a managers should try to find why If an employee is mismatched for the job or does not have adequate training, the worker can either be moved to another job or trained to perform the current job. If the employee has a discipline problem , the manager can rely on employee counseling and disciplinary action. Employee counseling is a process intended to help an employee overcome performance-related problems, it attempts to discover and remedy the reasons for his or her poor performance. Employee counseling can benefit both the company and the employee. Disciplinary action means the management to enforce the discipline rules and regulations of the organization which should be used only after the worker either cannot or will not accept help.
How does management decide who will get paid $12.65 an hour and who will receive $325,000 per year? The answer lies in Compensation administration is the process of determining a cost-effective pay structure that attracts and retains competent employees, provides incentives for hard work, and ensures that pay levels will be perceived as fair. Employee benefits programs seek to provide something that each employee can value other than financial rewards.
The primary determination of pay is the kind of job an employee performs: that is, the higher the skills, knowledge, and abilities—and the greater the authority and responsibility—the higher the pay. Other factors which influence employee compensation are the nature of the business, the environment surrounding the job, geographic location, and employee performance levels and seniority. Irrespective of the foregoing factors, there is one other most critical factor : management’s compensation philosophy.
As nonfinancial rewards intended to enrich employee’s lives, today’s employee benefits programs seek to provide something that each employee can value. Great varieties of employees breneifis programs exits in various organizations, some of them are legally required. The scope of these benefits varies from social security and worker’s compensation to paid vacation time, retirement plans, and life, health, or disability insurance.
Managers must use nontraditional recruiting sources to improve work force diversity—for instance, contacting women’s job networks, over-fifty clubs, urban job banks, disabled people’s training centers, ethnic newspapers, and gay-rights organizations. Then, management must make sure that the selection process does not discriminate. Once workers are hired, management must demonstrate that the organization is sensitive to their needs. Recognizing that orientation for women and minorities can be complex, many companies conduct consciousness-raising workshops and diversity programs for both current and new workers; add diversity goals to employee evaluations and promotions; and offer special mentoring programs for women and minorities. Almost all Fortune 500 companies in the United States have had sexual harassment complaints lodged against them by employees, and about one-third of them have been sued. According to estimates, sexual harassment costs the typical Fortune 500 company $6.7 million a year in absenteeism, low productivity, and turnover. Sexual harassment can be defined as sexually suggestive remarks, unwanted touching and sexual advances, requests for sexual favors, or other verbal or physical contact of a sexual nature. The courts have ruled that if a manager or agent for an organization commits sexual harassment, then the organization itself is liable. To avoid liability and do the right thing, managers must follow the organization’s established policy against sexual harassment.
The following family-friendly benefits recognize that workers have responsibilities outside of the workplace: flextime or part-time work, parental leave, and adoption benefits. Working parents and those caring for elderly relatives need quality child care and elder care near their place of work. Management must also acknowledge the needs of dual-career couples. Historically, the relationship between a labor union and management was based on conflict. But times have changed somewhat. Management has realized that successful efforts to increase productivity, improve quality, and lower costs require employee involvement and commitment. Similarly, some labor unions have recognized that they can help their members more by cooperating with management rather than fighting it. Unfortunately, current U.S. labor laws, passed during an era of mistrust and antagonism between labor and management, may be a barrier to both parties becoming cooperative partners.
There is a growing concern for safety on the job because no organization is immune from workplace violence. Consider the following statistics. Twenty employees are murdered each week at work. Homicide is the number-two cause of work-related death in the United States. For women, it’s the number-one cause of work-related death. In the United States, more than one million employees are attacked each year, and more that six million are threatened with bodily harm. Because the circumstances of each incident are different, a specific plan of action for companies is difficult to detail. However, several suggestions can be made. First , the organization must develop a plan to deal with the issue. Furthermore , organizations must train managers to identify troubled employees before the problem results in violence. Organizations should also implement stronger security measures. Downsizing is a critical human resource management issue. Many organizations have helped lay-off victims through job-help services, psychological counseling, support groups, severance pay, extended health insurance benefits, and detailed communication. However, little has been done to help those who are left behind. While lay-off victims get to start over with a clean slate, survivors do not. As a result, layoff-survivor sickness has become a workplace problem. The symptoms include insecurity, guilt, depression, stress, fear, loss of loyalty, and reduced effort. To maintain morale and productivity, management must assure individuals who are still on-the-job that they are valuable to the organization.
In the past, a simple rule held true: hire employees during good times and fire employees in bad times. Modern organizations, however, are responding to the global business environment in other ways, such as redesigning jobs or downsizing —extensive layoffs intended to cut costs and boost efficiency. As a result, many firms are now outsourcing —using outside firms to provide necessary products and services. Rather than disappearing, big companies are changing how they operate, for instance, blending large size with agility by dividing into smaller, more flexible units. At issue for these corporations is staffing their ranks properly, or rightsizing , according to their strategic goals.