Management Principles

Principles of Management

Principle – A basic truth or law

Example Principle of Gravity explains why objects fall to the

ground when they are dropped Principle of Inertia explains why objects at rest

remain at rest.

Principles of Management

Scientists prove principles are true by performing controlled experiments

These experiments test their hypothesis An idea about the way something works

After the hypothesis has been tested many times and proven to be true, The hypothesis becomes a LAW, or PRINCIPLE

Principles of Management

A controlled experiment in the business world is harder to do due to: Control Exact observations Exact businesses

Principles of Management

Most management principles are developed through observation and deduction

Observation – watching over the work done by others

Deduction – the process of drawing a general conclusion from specific examples

Principles of Management

Principles are interpreted differently

Principles should serve as a guide, not a rigid law

If a principle does not apply to a specific situation, it is the responsibility of the manager not to use the basis of the principle

Principles of Management

Examples A pleasant work environment contributes to

productivity The work day should start at the same time for all

employees The dress code should be professional in order to

create a setting in the workplace that resembles professionalism

Work schedules are created and should be followed by all employees

How Companies Select Employees

Human Resources Department Recruits employees Manages training and compensation Plans for future personnel needs

Advertise employment opportunities Interview potential employees Select applicants Fill the position

How Companies Select Employees

Human resource department will develop an employment plan

First step is to develop a job description A written statement identifying the type of work and

necessary qualifications for a job Job description sets the standard against what the

applicants are measured

How Companies Select Employees

Step 2 is to determine the target applicant pool and advertise the position.

Advertise: Ad in newspaper (classifieds) Job Fair Internet job search websites

www.monster.com www.careerbuilder.com www.hotjobs.com

How Companies Select Employees

The standard selection process has four steps

1. Preliminary screening2. Testing3. Employment interviews4. Personal judgement

How Companies Select Employees

Preliminary ScreeningHundreds of letters and resumes may arrive in

response to a job posting

Human Resources must sort these applicants and find the ones that are qualified for the job according to the job description

Example Southwest Airlines receive 129,000 resumes and hire

3,411 people every two years. On average

How Companies Select Employees

Preliminary ScreeningWhen the pool has been narrowed, other

team members are asked to help evaluate.

At this stage, HR will check the applicants references and credentials

A scheduled interview or test will be granted

How Companies Select Employees

TestingEvery job will have applicants with similar

credentials

Tests provide a uniform evaluation of the qualifications of each applicant

How Companies Select Employees

TestingA common employee test is the Predictive

Index (PI) A ten-minute personality test used to identify potential

employees strengths and weaknesses More than 3000 companies use the PI

How Companies Select Employees

Other types of employment tests: Aptitude test – measures capacity to learn a particular

subject or skill Psychomotor test – measures strength, dexterity, and

coordination Job Knowledge test – measures knowledge related to a

particular job Proficiency test – measures performance on a sample of

the work required in the job Psychological test – attempts to define personality traits Polygraph test – (lie detector test) – records changes in

physical response as a person responds to questions to determine whether responses are truthful

Test Types

Aptitude Test www.3smartcubes.com > aptitude test

Psychomotor test Test of Basic Aviation Skills – U.S. Air Force

Job Knowledge Test www.allthetests.com >knowledge > job knowledge

Proficiency Test – AHSGE, Math Proficiency Exam

Psychological Test www.psychologytoday.com > tests

How Companies Select Employees

Employment test must meet requirements for: Validity Reliability

A test is valid if it measures factors relevant to the job

A test is reliable if the same person or group taking it again under similar circumstances get similar results

Interview Process

Interviews are the personal assessment of the Employee selection process

Personal contact allows more to be learned about the applicant than a resume and cover letter can convey

Interview Process

As the interviewer, you should: Set aside space for the interview

Private room if available If not, interview should be private from other job

applicants Put the applicant at ease

Make them feel comfortable with small talk or cup of coffee

Interviewer should be outgoing and easy to talk to Take control of the interview

Take notes to record important points Control the direction of conversation without dominating

Interview Process

As the interviewee, you should Be dressed professional Be prepared for the interview by knowing about the

job offer Be ON TIME

On time is late, BE EARLY Relax and be yourself

If you put on an act, you will have to keep up the act if you get the job

Speak honestly Do not exaggerate you or your skills or accomplishments

Interview Process

The interview process may be: Structured Unstructured

An applicant may be asked for another interview that is more in depth and longer called a: Second Interview

Interview Process

Structured InterviewThe interviewer prepares a list of questions,

which allows them to remember to ask each question to each applicant Why are you leaving your current job Where do you want to be in five years What are your best qualities Why do you feel you will be good for the job

Useful when interviewing many applicants for the same position because it provides UNIFORM info from each applicant

Interview Process

Unstructured InterviewA conversation between interviewer and

applicant in a relaxed atmosphere

The employer will ask open ended questions, allowing the applicant to talk openly

Applicant may also ask questions about the organization

Interview Process

Unstructured Interview

Not always reliable due to not all important questions being asked and answered.

Bias may be present due to direction of questions

Interview Process

You do not get a second chance at First impressions Be Professional

HALO EFFECT A single characteristic dominates the interviewers

impression of the applicant Examples

Pleasant personality Good personal skills

Personal Judgment

The final step in the Employee Selection Process Who gets the job

Who will have the most success at the offered job

What personal characteristics match the applicant to the job

Personal Judgment

If more than one applicant is qualified, the employer must make a judgment as to who would be most successful

If the previous steps were performed correctly, the judgment should not be a hard process Preliminary Screening Testing Personal Interviews

Personal Judgment

If no applicant is qualified or meets the job criteria, a higher salary might be offered to attract more applicants Company may advertise in a different newspaper May post on various job search websites

It is best to wait for a qualified applicant that to settle on a mediocre hire

Legal Considerations

Legal action may ensue if tests are used without ensuring fairness, validity, and reliability

Results must be evaluated objectively, based on job-related attributes

Legal Considerations

No consideration can be based on: Race Religion Sex Sexual Preference National Origin Marital Status

Legal Considerations

Griggs vs. Duke Power Company A case brought by a group of African-American

employees at a power generating plant Employees objected to the requirement of a high

school diploma or the passing of an intelligence test as conditions of employment in or transfer to jobs at the plant

Legal Considerations

Griggs vs. Duke Power Company The court decided that if a test negatively impacts

female or minority groups applicants, then the company must prove validity and prevalence to job requirements.

Even if the company does not mean to discriminate, it may unintentionally select an unfair test.

Legal Considerations

Albemarle Paper Company vs. Moody The North Carolina Paper Mill was seeking the

reversal of a Court of Appeals decision that eliminated its testing program and awarded back pay to a group of African American employees

The managers argued that in addition to creating diversity programs, they had statistical proof that their testing was job-related

A lower court noted that they had made efforts to deal with segregation.

Legal Considerations

Albemarle Paper Company vs. Moody The Supreme Court agreed with the Court of Appeals

that the intentions were not the main issue It held that it was not enough to show that the best

workers did well on the tests, or that a testing program improved the overall quality of the work force

Any tests had to be specifically related to performing the job in question