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BM_09--revised

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BM_09--revised

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BM_09--revised

  1. 1. Chapter 9 Managing Human Resources and Diversity
  2. 2. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Objectives  Explain the strategic role of human- resource management  Describe federal legislation and societal trends that influence human-resource management  Explain what the changing social contract between organizations & employees means for workers and human-resource managers
  3. 3. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Objectives  Describe the tools managers use to recruit & select employees, as well as how organizations develop an effective workforce through training & performance appraisal  Explain how organizations maintain a workforce through the administration of wages & salaries, benefits and terminations
  4. 4. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Objectives  Understand the pervasive demographic changes occurring in the domestic & global marketplace & how corporations are responding  Recognize the complete attitudes, opinions & issues that employees bring to the workplace, including prejudice, discrimination, stereotypes & ethnocentrisms  Recognize the factors that affect women’s opportunities, including the glass ceiling, the opt-out trend and the female advantage
  5. 5. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. New Manager’s Question 1 Managers need to have a prime focus on the bottom line—on the financial well-being of the company. 1 2 3 4 5 Mostly Yes Mostly No
  6. 6. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. New Manager’s Question 2 Hiring people to work for a company is about the economic contract between employer & employee. 1 2 3 4 5 Mostly Yes Mostly No
  7. 7. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. New Manager’s Question 2 The increasing numbers of foreign workers at U.S. companies need to spend a lot of attention learning the U.S. culture & adapting. 1 2 3 4 5 Mostly Yes Mostly No
  8. 8. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Introduction • Hiring & keeping employees is 1 of the most urgent concerns • Employees are the primary source of competitive advantage • Human Resource Management – design & application of formal systems in an organization to ensure the effective & efficient use of human talent to accomplish organizational goals.
  9. 9. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Strategic Role of HRM Is to Drive Organizational Performance  All managers are involved in human- resource management  Employees are viewed as assets  HRM is a matching process, integrating the organization's strategy & goals with the correct approach to managing human capital
  10. 10. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Strategic Role of HRM Is to Drive Organizational Performance  The right people to become more competitive on a global basis  The right people for improving quality, innovation, and customer service  The right people to retain during mergers and acquisitions  The right people to apply new information technology for e-business
  11. 11. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Strategic Human Resource Management
  12. 12. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Building Human Capital to Drive Performance • Strategic decisions are related to human decisions • More companies rely on information, creativity and knowledge Human Capital is the economic value of the combined knowledge, experience, skills and capabilities of employees
  13. 13. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Role and Value of Human-Capital Investments
  14. 14. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Globalization • Organizations must compete on a global basis • Success is determined by global HR strategies • International human-resource management addresses the added complexity of managing diverse people globally
  15. 15. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Impact of Federal Legislation on HRM • Many HR related laws exist to ensure equal opportunity, and stop discrimination • Equal Employment Opportunity (EEO) • Equal Employment Opportunity Commission (EEOC)
  16. 16. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Impact of Federal Legislation on HRM • Discrimination – the hiring or promotion of applicants based on criteria that are not job related • Affirmative action – requires employers to take positive steps to guarantee equal employment opportunities for people of protected groups
  17. 17. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Major Federal Laws Related to Human- Resource Management
  18. 18. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Changing Nature of Careers Old Social Contract (for employee’s working life) • Employees contributed: – Ability, education, loyalty & commitment • Company provided: – Wages, benefits, work, advancement & training
  19. 19. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Changing Nature of Careers New Social Contract • Based on concept of employability rather than lifetime employment • Individuals manage own careers • Organization no longer takes care of them • Employees take more responsibility & control in their jobs/no longer a cog in the machine
  20. 20. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Changing Nature of Careers The Changing Social Contract: – We can’t promise you how long we’ll be in business – We can’t promise you that we won’t be acquired – We can’t promise that there’ll be room for promotion – We can’t promise that your job will exist when you reach retirement age
  21. 21. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Comparing the Social Contract
  22. 22. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Innovations in HRM • Becoming an Employer of Choice – Organizations that are highly attractive to potential employees because of HR practices – Tangible benefits such as pay & profit sharing – Intangibles such as work/life balance, trust, healthy culture
  23. 23. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Innovations in HRM • Using Temporary and Part-Time Employees – Contingent workers becoming a larger part of workforce – Work for an organization—not on a permanent or full-time basis – Temporary placements, contracted employees, leased employees – Do everything from data entry to interim CEO – Temporary staffing doubled from 2002-2007
  24. 24. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Innovations in HRM  Promoting Work-Life Balance  Helping workers lead a balanced life  Part-time work and telecommuting  Flexible scheduling  Gen Y demands more work-life balance than previous generations  Work-life balances can create happier, productive workers
  25. 25. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Innovations in HRM • Rightsizing the Organization – Intentionally reducing the company’s workforce to the point where the number of employees is deemed to be right for the company’s current situation – Advantage – Make the company stronger & more competitive – Disadvantage – Layoffs can lead to decreased morale & performance
  26. 26. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 Broad Goals of HRM • Finding • Developing • Maintaining…an effective workforce
  27. 27. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Finding the Right People • 1st Step • Predicting the need for new employees based on the types of vacancies that exist • 2nd Step • Use recruiting procedures to communicate with potential applicants • 3rd Step • Select from the applicants those persons believe to be the best potential contributors • Finally • Welcome the new employee
  28. 28. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Finding the Right People • Matching model • Organization & individual attempt to match the needs, interests, and values they offer each other
  29. 29. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Attracting an Effective Workforce
  30. 30. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Human Resource Planning • Forecasting of human-resource needs & the projected matching of individuals with expected vacancies • What new technologies are emerging? • What is the volume of the business likely to be in the next 5 to 10 years? • What is the turnover rate? • What types of engineers will we need? • How many administrative personnel will we need to support additional engineers? • Can we use temporary, part-time, or virtual workers?
  31. 31. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruiting • Activities or practices that define the characteristics of applicants to whom selection procedures are applied • Internal recruiting – promote from within • Advantages • Less costly and higher employee commitment • External recruiting – newcomers from outside • Advantages • Provided by a variety of resources
  32. 32. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruiting • Assessing Organizational Needs: – Job Analysis – Systematic process of gathering & interpreting information about the essential duties, tasks, responsibilities and context of the job – Job Descriptions – Clear & concise summary of the specific tasks, duties & responsibilities of the job – Job Specifications – Outlines the knowledge, skills, education, physical abilities & other characteristics needed to perform the job
  33. 33. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Sara Lee’s Required Skills for Finance Executives
  34. 34. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruiting • Realistic Job Previews – gives applications all pertinent information, positive & negative, about the job and the organization • Advantages • Greater employee satisfaction • Lower turnover
  35. 35. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruiting • Legal Considerations – recruiting practices must be legal • American with Disabilities Act - need for job descriptions & specifications that reflect the job’s mental & physical specs • Affirmative Action – goals, timetables or other methods in recruiting to promote the hiring, development and retention of protected groups • Innovations in Recruiting: – Employee Referrals/Networking – Web Sites
  36. 36. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Prudential’s Corporate Recruiting Policy
  37. 37. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Recruiting • E-Cruiting • Recruiting job applicants online • Extends the organizations reach • Widens the pool of applicants • Saves time & money • Innovations in Recruiting: – Employee Referrals/Networking – Searching membership of relevant trade groups – Former prison inmates, immigrants fleeing persecution, welfare recipients & older workers
  38. 38. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Selecting • Employers assess applicants'’ characteristics to determine the “fit” between the job and the applicant characteristics • Devices used for assessment: – Application form – Interview – Employment test – Assessment center
  39. 39. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Selecting • Application form – Collects information about the applicant’s education, previous job experience & other background characteristics – Should not include irrelevant questions
  40. 40. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Selecting • Interview – Serves as a 2-way communication channel that allows both the organization & applicant to collect information – Cannot ask questions that violate EEO guidelines – Not a good predictor of job performance – Types of interviews • Series, panel, and computer-based
  41. 41. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Employment Applications and Interviews: What Can You Ask?
  42. 42. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Selecting • Employment test – Written or computer-based test designed to measure particular attributes such as intelligence, aptitude, ability or personality • Assessment center – Present simulated managerial situations to groups of applicants over two-or three-days and have proven to be valid predictors of managerial success • Online checks
  43. 43. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Managing Talent • Training and Development – planned effort by an organization to help employees learn job-related skills & behaviors – On-the-job Training – an experienced employee “adopts” a new employee & teaches job duties • Advantages – lower costs, quick & effective • Cross training – moving people to various types of jobs within the organization to work with experienced employees to learn different tasks
  44. 44. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Training & Development (cont’d) • Corporate Universities – An in-house training & education facility that offers broad-based learning opportunities • Promotion from Within – Helps companies retain valuable employees • Mentoring and Coaching – Mentoring – experienced employees guiding & supporting newcomers/less experienced employees – Coaching – directing, instructing & training a person with the goal to develop specific management skills
  45. 45. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Performance Appraisal • Steps of observing & assessing employee performance, recording the assessment & providing feedback • Give feedback & praise concerning good things • Describe areas that need improvement • HRM professionals concentrate on accurate assessment & training managers to use the PA interview effectively
  46. 46. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Performance Appraisal • Assessing Performance Accurately – system should require the rater to assess each relevant dimension • 360-degree Feedback – uses multiple raters, including self-rating to appraise employees and development • Performance-review ranking systems – evaluate direct reports relative to one another & categorizes each on a scale – Pits employees against each other
  47. 47. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Performance Evaluation Errors • Stereotyping – placing an employee into a class or category based on a few characteristics • Halo effect – giving employees the same rating on all dimensions of the job even if performance is good on some and not so good on others • Behaviorally Anchored Rating Scales (BARS) – rating technique that relates an employee’s performance to specific job-related incidents
  48. 48. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Example of a Behaviorally Anchored Rating Scale
  49. 49. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Maintaining an Effective Workforce • Compensation – All monetary payments & all goods or commodities used in lieu of money to reward employees – Wages/salaries – Benefits – health insurance, paid vacations, fitness centers, etc. – Attracts & retains talented workers
  50. 50. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Compensation • Wage and Salary Systems – Job-based pay – links compensation to the specific tasks that an employee performs – Skill-based pay – employees with higher skill levels receive higher pay than those with lower skills levels – Competency-based pay – encourages employees to develop skills & competencies, making them more valuable & employable
  51. 51. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Compensation • Compensation Equity - fairness and equity • Job evaluation – process of determining the value or worth of jobs within the organization through an examination of job content • Wage & salary surveys – show what other organizations pay in jobs that match a sample of “key” jobs
  52. 52. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Compensation • Pay for Performance (incentive pay) – ties part of the compensation to employee effort & performance • Raises productivity and cuts labor costs in competitive environment
  53. 53. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Maintaining an Effective Workforce • Benefits – Make up more than 40% of the labor costs in US – Required: Social Security, unemployment compensation and workers’ compensation – Extra: health insurance, vacations, on-site day care or fitness center – Cafeteria plan benefit package – select the benefits of the greatest value
  54. 54. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Maintaining an Effective Workforce • Termination – Valuable in maintaining an effective workforce – Employees who are poor performers are dismissed – Employees can use exit interviews as a valuable tool – Learn about dissatisfaction in the organization
  55. 55. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Changing Workplace  Demographic changes have transformed society  Good organizations take steps to attract and maintain workers that reflect the cultural diversity of the population  Diversity is no longer just the right thing to do
  56. 56. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Diversity in the United States  Aging workforce  Growth in the numbers of Hispanic and Asian workers  Minority purchasing power  Growth in foreign-born population
  57. 57. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Corporate Diversity Milestones
  58. 58. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Diversity on a Global Scale • Social and cultural differences can create difficulties • Europe has very complex and social cultural systems • National cultures are intangible, pervasive, and difficult to comprehend • It is imperative to understand local cultures
  59. 59. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Managing Diversity • Managing diversity is a management skill in which the advantages are maximized while the disadvantages are minimized • Diversity is the ways in which people are different, it includes – Past: Race, Gender, Age, Lifestyle and Disability – Present: how employees approach work, interact with each other and how they’re defined (inclusive model)
  60. 60. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Traditional Versus Inclusive Models of Diversity
  61. 61. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Dividends of Workplace Diversity  Better use of employee talent  Increased understanding of the marketplace  Enhanced breadth of understanding in leadership positions  Reduced costs associated with high turnover, absenteeism, and lawsuits
  62. 62. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Factors Shaping Personal Bias • Prejudice – different is deficient • Discrimination – acting on prejudicial attitudes • Stereotypes – rigid, exaggerated and irrational beliefs
  63. 63. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Factors Shaping Personal Bias • Stereotyping threat – Psychological experience of a person who, usually engaged in a task, is aware of a stereotype about his/her identify group that suggests he/she will not perform well on that task – People most affected – those considered as disadvantaged in the workplace due to negative stereotypes
  64. 64. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Stereotyping versus Valuing Cultural Differences
  65. 65. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ethnocentrism • Your group or subculture is inherently superior to other groups and cultures • Ethnocentrism makes diversity challenging • Business world and assumptions still somewhat homogeneous • Many organizations are shifting from a monoculture perspective to one of pluralism
  66. 66. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Factors Affecting Women’s Careers • Women have been limited by an invisible barrier – the glass ceiling – Separates women & minorities from top management positions • Glass walls – invisible barriers to important lateral movements • Homosexuality is another related issue
  67. 67. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Wage Gap
  68. 68. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Factors Affecting Women’s Careers • Mentoring can be a strategy to help women break through – Mentor – higher-ranking member who is committed to providing upward mobility & support to a protégé’s professional career • There has been a trend of women to Opt- Out of the fast-track – Corporate success isn't worth the price in terms of reduces family & personal time
  69. 69. (c)2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. The Female Advantage • Women have natural qualities appropriate for competitive environment – Paying attention, abiding by rules, verbally competent and interpersonal skills • Women are outpacing men in earning bachelor’s & master’s degrees • Women’s participation in both the labor force & civic affairs has steadily increased since the mid-1950s

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