Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 1 Chapter 11 Managing Human...

Chapter 11Copyright ©2009 by Cengage Learning Inc. All rights reserved

1

Chapter 11Managing

Human Resource Systems


3

The Human Resource Management Process

Recruiting

Selection

Attracting QualifiedEmployees

Determining HumanResource Needs Human Resource

Planning

Compensation

Employee Separation

Keeping QualifiedEmployees

Developing QualifiedEmployees

Training

Performance Appraisal

Adapted From Exhibit 11.1


5

Human Resource Planning

Supply and Demandof

Human Resources

Supply and Demandof

Human Resources

Human ResourceInformation

Systems

Human ResourceInformation

Systems

11


6

Forecasting Demand and Supply

•Internal forecasts

•External forecasts

•Internal forecasts

•External forecasts

•Direct managerial input

•Best guess

•Statistical / historicalratios

•Direct managerial input

•Best guess

•Statistical / historicalratios

Work ForceForecasting

ForecastingMethods

1.11.1

Projections about factors within the organization that affect the supply and demand for human

resources

Projections about factors outside the organization that affect the supply and demand for human

resources


8

Internal Forecast Factors

New positions New equipment

and technology Eliminated

positions Terminations Retirements Resignations Turnover

Transfers Deaths Promotions Organization’s

mission Productivity of

current employees Skills/education of

current employees

1.11.1

Adapted from Exhibit 11.2


9

External Forecast Factors

Demographics of labor supply

Geographic population shifts

Manufacturing-to service-to information-based economy shift

Economic conditions

Unemployment rate Labor unions Availability of

applicants Technological

advances Competitors Growth of businesses


1.11.1


10

Forecast Methods

1.11.1

DirectManagerial

Input

DirectManagerial

Input

BestGuess

BestGuess

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 onrelevant internal/external factors

Based on managers’ assessment of current head count, plus a guess onrelevant internal/external factors

Based on statistical methods, such asmultiple regression, in combinationwith historical data

Based on statistical methods, such asmultiple regression, in combinationwith historical data


11

Human Resource Information Systems

Computerized employee information systems Uses

• transaction processing• employee self-service• decision support

1.21.2


12

Human Resource Information Systems

HRISHRISWork HistoryWork History

PerformanceAppraisal

PerformanceAppraisal

Personal DataPersonal Data

EducationalData

EducationalData

CompanyEmployment

History

CompanyEmployment

History

Promotion DataPromotion Data


1.21.2


13

Employment Legislation

FederalEmployment

Laws

Adverse Impactand

EmploymentDiscrimination

SexualHarassment

Laws

22


14

Federal Employment Laws

Equal Pay Act of 1963Equal Pay Act of 1963

Civil Rights Act of 1964Civil Rights Act of 1964

Age Discrimination inEmployment Act of 1967

Age Discrimination inEmployment Act of 1967

Pregnancy DiscriminationAct of 1978

Pregnancy DiscriminationAct 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 ofrace, color, religion, gender, origin

prohibits discrimination on basis ofrace, color, religion, gender, origin

prohibits discrimination against persons age 40 and over

prohibits discrimination against persons age 40 and over

prohibits discrimination in employmentagainst pregnant women

prohibits discrimination in employmentagainst pregnant women

2.12.1



15

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 LeaveAct of 1993

Family & Medical LeaveAct of 1993

prohibits discrimination on the basis ofphysical or mental disabilities

prohibits discrimination on the basis ofphysical or mental disabilities

strengthened the Civil Rights Act of 1964strengthened the Civil Rights Act of 1964

permits workers to take up to 12 weeksof unpaid leave for pregnancy, etc.

permits workers to take up to 12 weeksof unpaid leave for pregnancy, etc.

Adapted from Exhibit 11.4Uniformed 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



16

Adverse Impact and Employment Discrimination

Four-FifthsFour-FifthsRuleRule

Four-FifthsFour-FifthsRuleRule

AdverseAdverseImpactImpact

AdverseAdverseImpactImpact

DisparateDisparateTreatmentTreatment

DisparateDisparateTreatmentTreatment

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

The EEOC has investigatory, enforcement and informational responsibilities over these areas of discrimination


17

Sexual Harassment

HostileWork

Environment

HostileWork

Environment

QuidPro Quo

QuidPro Quo

unwelcome and demeaning sexuallyrelated behavior creates an intimidating and offensive work environment

unwelcome and demeaning sexuallyrelated behavior creates an intimidating and offensive work environment

employee outcomes depend on whether an individual submits tosexual harassment

employee outcomes depend on whether an individual submits tosexual harassment

2.32.3


18

Common Managerial Mistakes in Sexual Harassment Laws

That the victim and harasser must be of the opposite sex

That harassment can only occur between coworkers or supervisors and subordinates

That only victims can file complaints

Assuming:

2.32.3


19

Company Responsibilities

Respond immediately to make sure sexual harassment laws are followed

Write a clear, understandable sexual harassment policy

Establish clear reporting procedures

Be in compliance with federal, state, and local sexual harassment laws

2.32.3


21

Recruiting

Job Analysisand

Recruiting

Job Analysisand

Recruiting

InternalRecruiting

InternalRecruiting

ExternalRecruiting

ExternalRecruiting

33


22

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


23



3.13.1

Job DescriptionJob DescriptionJob DescriptionJob Description Job Job SpecificationSpecification

Job Job SpecificationSpecification

HR SubsystemsHR SubsystemsHR SubsystemsHR Subsystems

RecruitingRecruitingRecruitingRecruiting SelectionSelectionSelectionSelection TrainingTrainingTrainingTraining PerformancePerformanceAppraisalAppraisal

PerformancePerformanceAppraisalAppraisal SeparationSeparationSeparationSeparation

Job AnalysisJob AnalysisJob AnalysisJob Analysis


24


JobDescription

JobDescription

written description of the basic tasks, duties, and responsibilities requiredof an employee holding a particular job

written description of the basic tasks, duties, and responsibilities requiredof an employee holding a particular job

JobSpecification

JobSpecification

a written summary of the qualificationsneeded to successfully perform a job

a written summary of the qualificationsneeded to successfully perform a job

3.13.1


25

Internal Recruiting

A pool of applicants who already work for the company

“Promotion from within” Improves employee morale and

motivation Reduces employer time and cost Job posting is the procedure for

internal advertising Career path is a planned sequence

of jobs

3.23.2


26

Methods for External Recruiting

AdvertisingEmployee referralsWalk-insOutside organizationsEmployment servicesSpecial events Internet job sites

3.33.3


27

Selection

SelectionTests

SelectionTests InterviewsInterviews

Application Formsand Résumés

Application Formsand Résumés

References andBackground Checks

References andBackground Checks

44


28

Topics Employers Should Avoid

1. Children1. Children

2. Age2. Age

3. Disabilities3. Disabilities

4. Physical Characteristics 4. Physical Characteristics

5. Name5. Name

6. Citizenship6. Citizenship

7. Lawsuits7. Lawsuits

8. Arrest records 8. Arrest records

9. Smoking9. Smoking

10. AIDS/HIV10. AIDS/HIV


4.14.1


29

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 feelswrong, 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 feelswrong, don’t do it.

Don’t embellish. Tell the truth on your résumé.

4.14.1


30

References and Background Checks

References or background checks are not always provided by previous employers

Making background checks more effective dig deeper for more information get permission in writing document all checks consider hiring private investigators

4.24.2


31

Selection Tests

WorkWorkSampleSample

BiographicalBiographicalDataData

PersonalityPersonality

AssessmentAssessmentCentersCenters

CognitiveCognitiveAbilityAbility

SpecificSpecificAbilityAbility

SelectionSelectionTestsTests

4.34.3


32

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


33

Interviews

Unstructured Interviews free-flow of questions

Structured Interviews interviewer uses standard set of prepared

questions

Semi-structured Interviews some structure combined with

interviewer judgement4.44.4


34

Questions in Structured Interviews

Situational QuestionsSituational Questions

Behavioral QuestionsBehavioral Questions

Background QuestionsBackground Questions

Job-Knowledge QuestionsJob-Knowledge Questions

4.44.4


35

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 characteristics 4.44.4



36


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

4.44.4Adapted from Exhibit 11.10


37


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

4.44.4Adapted from Exhibit 11.10

Chapter 11Copyright ©2009 by Cengage Learning Inc. All rights reserved 41

Biz Flix: Bowfinger

Take Two Video

Click

1. Does Bobbie Bowfinger have a set of valid selection criteria for filling the role of a Kit Ramsey lookalike? Does Bowfinger apply the criteria uniformly to each applicant?

2. Is there a good person-job fit of Jiff Ramsey in the screen role of Kit Ramsey?

3. Do you predict that Jiff Ramsey will be successful as a Kit Ramsey substitute?


43

Training

Training Needs

Training Needs

TrainingMethods

TrainingMethods

TrainingEvaluation

TrainingEvaluation

55


44

Determining Training Needs

ConductingNeeds

Assessments

ConductingNeeds

Assessments

IdentifyPerformanceDeficiencies

IdentifyPerformanceDeficiencies

Test EmployeeSkills and

Knowledge

Test EmployeeSkills and

Knowledge

SurveyEmployers

and Managers

SurveyEmployers

and Managers

Listen toCustomer

Complaints

Listen toCustomer

Complaints

5.15.1


45

Needs Assessment

Step 1Step 1

Step 2Step 2

Step 3Step 3

Job AnalysisJob Analysis

Test Employee SkillsTest Employee Skills

Compare Employee Skillsto Required Skills

Compare Employee Skillsto Required Skills


5.15.1

Do I actually need to do training?


47

Training Methods


Impart Informationand Knowledge

Impart Informationand Knowledge

Develop Analyticaland Problem-SolvingSkills

Develop Analyticaland Problem-SolvingSkills

Practice, Learn, orChange Job Behaviors

Practice, Learn, orChange Job Behaviors

All of the above

All 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


48

Evaluating Training

ReactionsReactions

LearningLearning

BehaviorBehavior

ResultsResults

how satisfied trainees were with the program

how satisfied trainees were with the program

how much employees improvedtheir knowledge or skills

how much employees improvedtheir knowledge or skills

how much employees actually changedtheir on-the-job behavior

how much employees actually changedtheir on-the-job behavior

how much training improvedjob performance

how much training improvedjob performance

5.35.3


49

Computer-Based Training


50

Performance Appraisal

MeasuringJob

Performance

MeasuringJob

Performance

SharingPerformance

Feedback

SharingPerformance

Feedback

66


51

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


52

Measuring Job Performance

Improving Job Performance Measurements Improving Job Performance Measurements

Improve Performance Appraisal Measures

Improve Performance Appraisal Measures

TrainPerformance Raters

TrainPerformance Raters

6.16.1


53

Improving Performance Appraisal Measures

Objective performance measures quantifiable outcomes (output, scrap, waste,

sales, customer complaints, or rejection rates)

Subjective performance measures Someone’s judgment regarding the worker’s

performance.

6.16.1


54

Subjective Performance Appraisal Scales

6.16.1Exhibit 11.13


55

Rater Training

Teach raters how to avoid errorsImprove rating accuracyVideo training and role playing often used

6.16.1


56

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


58

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 andgoals 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 andgoals for the coming year

What to Discuss in Performance Appraisal Feedback Sessions

6.26.2Adapted From Exhibit 11.14


60

Compensation

CompensationDecisions

CompensationDecisions

EmploymentBenefits

EmploymentBenefits

77


61

Compensation Decisions

• Job evaluation

• Piecework

• Commission

• Profit sharing

• Employee stock ownership plans

• Stock options

• Hierarchical

• Compressed

PayPayLevelLevel

PayPayVariabilityVariability

PayPayStructureStructure

• Cafeteria plans

• Flexible plans

• Payroll deductions


EmploymentEmploymentBenefitsBenefits

7.17.1


62

Pay-Level DecisionsJob 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


63

Pay-Variability Decisions

PieceworkCommissionProfit sharingEmployee stock ownership plans (ESOPs)Stock options

7.17.1


64

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


65

Employment Benefits

Compensation other than direct wagesEmployee benefits are legally mandated:

Social Security worker’s compensation unemployment insurance

Cafeteria benefit plans employees can select from optional benefits

Payroll deductions7.27.2


66

Employee Separations

TerminationsTerminations DownsizingDownsizing

TurnoverTurnoverRetirementsRetirements

88


67

Terminating Employees

Often mismanagedMinimize 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


68

Downsizing1. 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.

8.28.2Adapted From Exhibit 11.16


69

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


70

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

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 1 Chapter 11 Managing Human...

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Transcript of Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 1 Chapter 11 Managing Human...