introduction to management 11

Chapter 11
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved
MANAGEMENTMANAGEMENT
Chapter 11
MBH1113MBH1113
Managing Human Resource Systems

Chapter 11
Copyright ©2007 by South-Western, a division of Thomson Learning. All rights reserved 2
The Human Resource
Management Process
Recruiting
Selection
Attracting Qualified
Employees
Determining Human
Resource Needs Human Resource
Planning
Compensation
Employee Separation
Keeping Qualified
Employees
Developing Qualified
Employees
Training
Performance Appraisal
Adapted From Exhibit 11.1

Chapter 11
Human Resource Planning
Supply and Demand
of
Human Resources
Supply and Demand
of
Human Resources
Human Resource
Information
Systems
Human Resource
Information
Systems
11

Chapter 11
Forecasting Demand and Supply
•Internal forecasts
•External forecasts
•Internal forecasts
•External forecasts
•Direct managerial input
•Best guess
•Statistical / historical
ratios
•Direct managerial input
•Best guess
•Statistical / historical
ratios
Work Force
Forecasting
Forecasting
Methods
1.11.1

Chapter 11
Forecasting Demand and Supply
Internal
Factors
Internal
Factors
WorkWork
ForceForce
ForecastForecast
WorkWork
ForceForce
ForecastForecast
External
Factors
External
Factors
1.11.1

Chapter 11
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
1.11.1
Adapted from Exhibit 11.2

Chapter 11
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
1.11.1

Chapter 11
Forecast Methods
1.11.1
Direct
Managerial
Input
Direct
Managerial
Input
Best
Guess
Best
Guess
Statistical/
Historical Ratios
Statistical/
Historical Ratios
Based on projections of cash flows,
expenses, or financial measures
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 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
Based on statistical methods, such as
multiple regression, in combination
with historical data

Chapter 11
Human Resource Information Systems
 Computerized employee information systems
 Uses
• transaction processing
• employee self-service
• decision support
1.21.2

Chapter 11
Human Resource Information Systems
HRISHRISWork HistoryWork History
Performance
Appraisal
Performance
Appraisal
Personal DataPersonal Data
Educational
Data
Educational
Data
Company
Employment
History
Company
Employment
History
Promotion DataPromotion Data
1.21.2

Chapter 11
Employment Legislation
Federal
Employment
Laws
Adverse Impact
and
Employment
Discrimination
Sexual
Harassment
Laws
22

Chapter 11
Federal Employment Laws
Equal Pay Act of 1963Equal Pay Act of 1963
Civil Rights Act of 1964Civil Rights Act of 1964
Age Discrimination in
Employment Act of 1967
Age Discrimination in
Employment Act of 1967
Pregnancy Discrimination
Act of 1978
Pregnancy Discrimination
Act of 1978
prohibits unequal pay for males and
females doing similar work
prohibits unequal pay for males and
females doing similar work
prohibits discrimination on basis of
race, color, religion, gender, origin
prohibits discrimination on basis of
race, color, religion, gender, origin
prohibits discrimination against
persons age 40 and over
prohibits discrimination against
persons age 40 and over
prohibits discrimination in employment
against pregnant women
prohibits discrimination in employment
against pregnant women
2.12.1

Chapter 11
Federal Employment Laws (cont.)
2.12.1
Americans with
Disabilities Act of 1990
Americans with
Disabilities Act of 1990
Civil Rights Act of 1991Civil Rights Act of 1991
Family & Medical Leave
Act of 1993
Family & Medical Leave
Act of 1993
prohibits discrimination on the basis of
physical or mental disabilities
prohibits discrimination on the basis of
physical or mental disabilities
strengthened the Civil Rights Act of 1964strengthened the Civil Rights Act of 1964
permits workers to take up to 12 weeks
of unpaid leave for pregnancy, etc.
permits workers to take up to 12 weeks
of unpaid leave for pregnancy, etc.
Uniformed Services
Employment &
Reemployment Rights Act
Uniformed Services
Employment &
Reemployment Rights Act
prohibits discrimination against those
serving in the Armed Forces
prohibits discrimination against those
serving in the Armed Forces

Chapter 11
Adverse Impact and
Employment Discrimination
Four-FifthsFour-Fifths
RuleRule
Four-FifthsFour-Fifths
RuleRule
AdverseAdverse
ImpactImpact
AdverseAdverse
ImpactImpact
DisparateDisparate
TreatmentTreatment
DisparateDisparate
TreatmentTreatment
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
occurred2.22.2

Chapter 11
Sexual Harassment
Hostile
Work
Environment
Hostile
Work
Environment
Quid
Pro Quo
Quid
Pro Quo
unwelcome and demeaning sexually
related behavior creates an
intimidating and offensive work
environment
unwelcome and demeaning sexually
related behavior creates an
intimidating and offensive work
environment
employee outcomes depend on
whether an individual submits to
sexual harassment
employee outcomes depend on
whether an individual submits to
sexual harassment
2.32.3

Chapter 11
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:
2.32.3

Chapter 11
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
2.32.3

Chapter 11
Recruiting
Job Analysis
and
Recruiting
Job Analysis
and
Recruiting
Internal
Recruiting
Internal
Recruiting
External
Recruiting
External
Recruiting
33

Chapter 11
Job Analysis and Recruiting
 work activities
 tools and equipment used to do the job
 context in which the job is performed
 personnel requirements for performing the job
 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
3.13.1

Chapter 11
3.13.1
Job DescriptionJob DescriptionJob DescriptionJob Description JobJob
SpecificationSpecification
JobJob
SpecificationSpecification
HR SubsystemsHR SubsystemsHR SubsystemsHR Subsystems
RecruitingRecruitingRecruitingRecruiting SelectionSelectionSelectionSelection TrainingTrainingTrainingTraining PerformancePerformance
AppraisalAppraisal
PerformancePerformance
AppraisalAppraisal SeparationSeparationSeparationSeparation
Job AnalysisJob AnalysisJob AnalysisJob Analysis

Chapter 11
Job
Description
Job
Description
written description of the basic tasks,
duties, and responsibilities required
of an employee holding a particular job
written description of the basic tasks,
duties, and responsibilities required
of an employee holding a particular job
Job
Specification
Job
Specification
a written summary of the qualifications
needed to successfully perform a job
a written summary of the qualifications
needed to successfully perform a job
3.13.1

Chapter 11
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
3.23.2

Chapter 11
Methods for External Recruiting
 Advertising
 Employee referrals
 Walk-ins
 Outside organizations
 Employment services
 Special events
 Internet job sites
3.33.3

Chapter 11
Selection
Selection
Tests
Selection
Tests InterviewsInterviews
Application Forms
and Résumés
Application Forms
and Résumés
References and
Background Checks
References and
Background Checks
44

Chapter 11
Topics Employers Should Avoid
1. Children1. Children
2. Age2. Age
3. Disabilities3. Disabilities
4. Physical Characteristics4. Physical Characteristics
5. Name5. Name
6. Citizenship6. Citizenship
7. Lawsuits7. Lawsuits
8. Arrest records8. Arrest records
9. Smoking9. Smoking
10. AIDS/HIV10. AIDS/HIV
4.14.1

Chapter 11
Doing the Right Thing
Don’t Embellish Your Résumé
 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.
Don’t Embellish Your Résumé
 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.
4.14.1

Chapter 11
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
4.24.2

Chapter 11
Selection Tests
WorkWork
SampleSample
BiographicalBiographical
DataData
PersonalityPersonality
AssessmentAssessment
CentersCenters
CognitiveCognitive
AbilityAbility
SpecificSpecific
AbilityAbility
SelectionSelection
TestsTests
4.34.3

Chapter 11
Doing the Right Thing
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
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
4.34.3

Chapter 11
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
4.44.4

Chapter 11
Questions in Structured Interviews
Situational QuestionsSituational Questions
Behavioral QuestionsBehavioral Questions
Background QuestionsBackground Questions
Job-Knowledge QuestionsJob-Knowledge Questions
4.44.4

Chapter 11
Guidelines for Conducting
Effective Structured Interviews
Planning the InterviewPlanning the Interview
 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
KSAO: Knowledge, skills, abilities,
and other characteristics4.44.4

Chapter 11
Conducting the InterviewConducting the Interview
 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
4.44.4

Chapter 11
After the InterviewAfter the Interview
 Review your notes immediately
 Evaluate the applicant on each KSAO
 Determine each applicant’s probability of
success and make a hiring decision
4.44.4

Chapter 11
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%
Using Selection Tests to Hire Good Workers

Chapter 11
What Really Works
Cognitive Ability + Work Sample Tests
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Cognitive Ability + Integrity Tests
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Cognitive Ability + Structured Interviews
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Using Selection Tests to Hire Good Workers

Chapter 11
Training
Training
Needs
Training
Needs
Training
Methods
Training
Methods
Training
Evaluation
Training
Evaluation
55

Chapter 11
Determining Training Needs
Conducting
Needs
Assessments
Conducting
Needs
Assessments
Identify
Performance
Deficiencies
Identify
Performance
Deficiencies
Test Employee
Skills and
Knowledge
Test Employee
Skills and
Knowledge
Survey
Employers
and Managers
Survey
Employers
and Managers
Listen to
Customer
Complaints
Listen to
Customer
Complaints
5.15.1

Chapter 11
Work Keys Needs Assessment
Step 1Step 1
Step 2Step 2
Step 3Step 3
Job AnalysisJob Analysis
Test Employee SkillsTest Employee Skills
Compare Employee Skills
to Required Skills
Compare Employee Skills
to Required Skills
5.15.1

Chapter 11
Work Keys Needs Assessment
Exhibit 11.11
5.15.1

Chapter 11
Training Methods
Impart Information
and Knowledge
Impart Information
and Knowledge
Develop Analytical
and Problem-Solving
Skills
Develop Analytical
and Problem-Solving
Skills
Practice, Learn, or
Change Job
Behaviors
Practice, Learn, or
Change Job
Behaviors
All of the aboveAll of the above
• films and videos
• lecture
• planned readings
• films and videos
• lecture
• planned readings
• case studies
• coaching and mentoring
• group discussions
• case studies
• coaching and mentoring
• group discussions
• on-the-job training
• role-playing
• simulations and games
• vestibule training
• on-the-job training
• role-playing
• simulations and games
• vestibule training
• Computer-based learning• Computer-based learning
5.25.2

Chapter 11
Evaluating Training
ReactionsReactions
LearningLearning
BehaviorBehavior
ResultsResults
how satisfied trainees were
with the program
how satisfied trainees were
with the program
how much employees improved
their knowledge or skills
how much employees improved
their knowledge or skills
how much employees actually changed
their on-the-job behavior
how much employees actually changed
their on-the-job behavior
how much training improved
job performance
how much training improved
job performance
5.35.3

Chapter 11
Computer-Based Training

Chapter 11
Performance Appraisal
Measuring
Job
Performance
Measuring
Job
Performance
Sharing
Performance
Feedback
Sharing
Performance
Feedback
66

Chapter 11
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
6.16.1

Chapter 11
Measuring Job Performance
Improving Job Performance MeasurementsImproving Job Performance Measurements
Improve Performance
Appraisal Measures
Improve Performance
Appraisal Measures
Train
Performance Raters
Train
Performance Raters
6.16.1

Chapter 11
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)
6.16.1

Chapter 11
Subjective Performance
Appraisal Scales
6.16.1
Exhibit 11.13

Chapter 11
Rater Training
 Teach raters how to avoid errors
 Improve rating accuracy
 Video training and role playing often used
6.16.1

Chapter 11
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
6.26.2

Chapter 11
Performance Feedback
1. Separate developmental feedback
from administrative feedback
2. Base performance appraisal feedback sessions
on self-appraisals
3. Have people discuss the feedback they
received with executive coaches or the people
who provided it
1. Separate developmental feedback
from administrative feedback
2. Base performance appraisal feedback sessions
on self-appraisals
3. Have people discuss the feedback they
received with executive coaches or the people
who provided it
Recommendations for Sharing Performance Feedback
6.26.2

Chapter 11
Performance Feedback
1. Overall progress
2. Problems encountered in meeting job
requirements
3. Opportunities to improve performance
4. Long-range plans and opportunities
5. General discussion of possible plans and
goals for the coming year
1. Overall progress
2. Problems encountered in meeting job
requirements
3. Opportunities to improve performance
4. Long-range plans and opportunities
5. General discussion of possible plans and
goals for the coming year
What to Discuss in Performance Appraisal
Feedback Sessions
6.26.2

Chapter 11
Compensation Decisions
• Job
evaluation
• Piecework
• Commission
• Profit
sharing
• Employee
stock
ownership
plans
• Stock
options
• Hierarchical
• Compressed
PayPay
LevelLevel
PayPay
VariabilityVariability
PayPay
StructureStructure
• Cafeteria
plans
• Flexible
plans
• Payroll
deductions
EmploymentEmployment
BenefitsBenefits
7.17.1

Chapter 11
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
7.17.1

Chapter 11
Pay-Variability Decisions
Piecework
Commission
Profit sharing
Employee stock ownership plans
(ESOPs)
Stock options
7.17.1

Chapter 11
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
7.17.1

Chapter 11
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
7.27.2

Chapter 11
Employee Separations
TerminationsTerminations DownsizingDownsizing
TurnoverTurnoverRetirementsRetirements
88

Chapter 11
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
8.18.1

Chapter 11
Downsizing
1. Provide clear reasons for the layoffs.
2. Get information to avoid laying off employees with
critical skills.
3. Training managers in how to tell employees.
4. Give employees the bad news early in the day.
5. Provide outplacement services and counseling.
6. Communicate with survivors.
8.28.2

Chapter 11
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…
8.38.3

Chapter 11
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
8.48.4

introduction to management 11

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