MGT 360 Ch 13: Human Resources Management

Recruitment Process

(1) advertisement of a job vacancy, (2) preliminary contact with potential job candidates, and (3) initial screening to create a pool of applicants potentially meeting the organization's staffing needs

The Age Discrimination in Employment Act prohibits discrimination against persons __________. (a) 40 years and older (b) 50 years and older (c) 65 years and older (d) of any age

(a) 40 years and older

Human resource management is the process of __________, developing, and maintaining a high-quality workforce. (a) attracting (b) compensating (c) appraising (d) training

(a) attracting

The __________ purpose of performance appraisal is being addressed when a manager describes training options that might help an employee improve future performance. (a) development (c) judgment (b) evaluation (d) legal

(a) development

An employee with domestic problems due to substance abuse would be pleased to learn that his employer had a(n) __________ plan to help on such matters. (a) employee assistance (b) cafeteria benefits (c) comparable worth (d) collective bargaining

(a) employee assistance

A __________ is a criterion that can be legally justified for use in screening candidates for employment. (a) job description (b) bona fide occupational qualification (c) job specification (d) BARS

(b) bona fide occupational qualification

When a team leader is required to rate 10% of team members as "superior," 80% as "good," and 10% as "unacceptable" for their performance on a project, this is an example of the __________ approach to performance appraisal. (a) graphic (b) forced distribution (c) behaviorally anchored rating scale (d) realistic

(b) forced distribution

Socialization of newcomers occurs during the __________ step of the staffing process. (a) recruiting (c) selecting (b) orientation (d) training

(b) orientation

__________ programs are designed to ensure equal employment opportunities for persons historically underrepresented in the workforce. (a) Realistic recruiting (b) External recruiting (c) Affirmative action (d) Employee assistance

(c) Affirmative action

In human resource planning, a(n) __________ is used to determine exactly what is done in an existing job. (a) critical-incident technique (b) assessment center (c) job analysis (d) multiperson comparison

(c) job analysis

Which phrase is most consistent with a recruiter offering a job candidate a realistic job preview? (a) "There are just no downsides to this job." (b) "No organization is as good as this one." (c) "There just aren't any negatives." (d) "Let me tell you what you might not like once you start work."

(d) "Let me tell you what you might not like once you start work."

__________ is the idea that jobs that are similar in terms of their importance to the organization should be compensated at the same level. (a) Affirmative action (b) Realistic pay (c) Merit pay (d) Comparable worth

(d) Comparable worth

In labor-management relations, the process of negotiating, administering, and interpreting a labor contract is known as __________. (a) arbitration (b) mediation (c) reconciliation (d) collective bargaining

(d) collective bargaining

Whereas bonus plans pay employees for special accomplishments, gain-sharing plans reward them for __________. (a) helping to increase social responsibility (b) regular attendance (c) positive work attitudes (d) contributing to cost reductions

(d) contributing to cost reductions

If an employment test yields different results over time when taken by the same person, it lacks __________; if it bears no relation to actual job performance, it lacks __________. (a) equity, reliability (b) specificity, equity (c) realism, idealism (d) reliability, validity

(d) reliability, validity

The first step in strategic human resource management is to __________. (a) forecast human resource needs (b) forecast labor supplies (c) assess the existing workforce (d) review organizational mission, objectives, and strategies

(d) review organizational mission, objectives, and strategies

Tasks of Human Resource Management

1. Attracting a quality workforce—talent acquisition through human resource planning, employee recruitment, and employee selection. 2. Developing a quality workforce—talent development through employee onboarding and orientation, training and development, and performance management. 3. Maintaining a quality workforce—talent retention through career development, work-life balance, compensation and benefits, retention and turnover, and labor-management relations.

Compensation and Benefits

Base compensation = salary or hourly wage paid to an individual. Benefits also rank right near the top of the list in importance with pay as a way of helping to attract and retain workers. Merit Pay Systems Bonuses and Profit-Sharing Plans

Bonuses and Profit-Sharing Plans

Bonus pay Profit-sharing plans Gain-sharing plans As incentive systems, profit-sharing plans, gain-sharing plans, and bonus plans have the advantage of helping to ensure that individual employees work hard by linking their pay to the performance of the organization as a whole.

How do organizations maintain a quality workforce?

Flexibility and work-life balance Compensation and benefits Retention and turnover Labor-management relations

How do organizations attract a quality workforce?

Human resource planning Recruitment process Selection techniques

Retention and Turnover

Many organizations offer special counseling and other forms of sup- port for retiring employees, including advice on company benefits, financial management, estate planning, and use of leisure time Early retirement incentive programs offer workers financial incentives to retire early. potential benefits for employers include the opportunity to lower payroll costs by reducing positions, replacing higher-wage workers with less expensive newer hires, and creating openings that can be used to hire workers with different, more current skills and talents. Termination is the involuntary dismissal of an employee. based on performance problems or violations of organizational policies Employment-at-will means that employees can be terminated at any time for any reason Wrongful discharge is a doctrine giving workers legal protections against discriminatory firings.

How do organizations develop a quality workforce?

Onboarding and socialization Training and development Performance management

Strategic Human Resource Management

The process by which managers design the components of an HRM system to be consistent with each other, with other elements of organizational architecture, and with the organization's strategy and goals. mobilizes human capital to implement organizational strategies. foundations are set with Employee value propositions (packages of opportunities and rewards that make diverse and talented people want to belong to and work hard for the organization) that align people with organizational strategies and objectives

Training and Development

Training provides learning opportunities to acquire and improve job-related skills. In job rotation, people switch tasks to learn multiple jobs. coaching and mentoring reverse mentoring, younger employees mentor seniors to improve their technology skills. Off-the-job training is accomplished outside the work setting. It provides an opportunity to enhance job-critical skills or even to develop skills that might be needed before a promotion or transfer. An example is management development

Recency bias

Your most recent actions are important--> people place emphasis on your more recent actions/performances

Employee Stock Ownership Plan (ESOP)

a compensation system that awards employees shares of company stock in addition to their regular compensation help employees purchase stock in their employing companies, sometimes at special discounted rates. The idea is that stock ownership will motivate employees to work hard so that the company becomes and stays successful.

360-degree feedback

a performance appraisal process in which feedback is obtained from the boss, subordinates, peers and coworkers, and the employees themselves Assessments from all of these sources are used to identify employ- ees' strengths, weaknesses, and development needs.

merit pay

a system of linking pay increases to ratings on performance appraisals good merit raise is a positive signal to high performers; no merit raise or a low merit raise sends a negative signal to low performers. Because their pay is contingent on performance, both groups are expected to work harder in the future. Problems: Wall Street Journal found that only 23% of employees understood their companies' reward systems. Who assesses performance? What happens if the employee doesn't agree with the assessment? Is the system fair and equitable to everyone involved? Is there enough money available to make the merit increases meaningful?

behaviorally anchored rating scale

an example of Behavior-based performance assessment, they evaluate employees on specific actions that are viewed as important parts of the job. test uses specific descriptions of actual behaviors to rate various levels of performance. more reliable and valid than the graphic rating scale because it anchors perfoemance assessments to specific descriptions of work behavior. also are more consistent with the developmental purpose of performance appraisal because they provide specific feedback to employees as to areas in need of improvement. problem: may be influenced by recency bias soolution: critical-incident technique

Human Resource Planning

analyzes staffing needs and identifies actions to fill those needs. begins with assessing staffing needs and the current workforce, and deciding what additions, replacements, and upgrades are required for the future. The process involves job analysis (the systematic evaluation of job facets to determine what is done when, where, how, why, and by whom.) This information is then used to write or update job descriptions that describe specific job duties and responsibilities. The information in a job analysis is used to create job specifications that identify the qualifications—such as education, prior experience, and skills—needed by someone hired for a given job.

biodata methods

collect certain biographical information that has been proven to correlate with good job performance collect "hard" biographical information and also include "soft" items that inquire about more abstract characteristics such as value judgments, aspirations, motivations, attitudes, and expectations. When used in conjunction with ability tests, they can increase the reliability and validity of the selection process.

multiperson comparison

compares one person's performance with that of others in rank ordering, all employees being rated are arranged in order of per- formance achievement. The best performers go at the top of the list, while the worst per- formers go at the bottom; no ties are allowed. In a forced distribution, each employee is placed into a frequency distribution, which requires that a certain percentage of employees fall into specific performance classifications, such as the top 10%, the next 40%, the next 40%, and the bottom 10%

Employee Benefits

compensation in forms other than cash such as health plans or retirements used in order to attract and retain highly qualified employees. The ever-rising costs of benefits, particularly medical insurance and retirement, are a major concern for employers. Flexible benefits programs allow employees to choose from a range of benefit options. Family-friendly benefits help employees achieve better work-life balance. Employee assistance programs help employees cope with personal stresses and problems.

Human Resource Management

consists of the activities managers perform to plan for, attract, develop, and retain an effective workforce deal with hiring, compensation and benefits, training, employee relations, and more.

Laws Protecting Against Discrimination

cornerstone of U.S. laws designed to protect workers from job discrimination is Title VII of the Civil Rights Act of 1964, amended by the Equal Employment Opportunity Act of 1972 and the Equal Employment Opportunity Act (EEOA) of 1991 legal protections for equal employment opportunity do not restrict an employer's right to establish bona fide occupational qualifications (BFOQs). These are criteria for employment that can be clearly justified as being a reasonable necessity for the normal operation of a business and are clearly related to a person's capacity to perform a job. Those based on sex, religion, age, able-bodiedness, and national origin are possible, but organizations must take great care to support these requirements.

bona fide occupational qualifications

employment criteria justified by the capacity to perform a job.

performance management system

establishes performance standards used to evaluate employee performance ensures that performance standards and objectives are set, that performance is regularly assessed, and that steps are taken to improve employees' future performance following the provision of performance feedback by managers.

gain sharing plans

extend the profit-sharing concept by allowing groups of employees to share in any savings or "gains" realized when their efforts or ideas result in measurable cost reductions or productivity increases.

Onboarding/orientation

familiarizes new hires with the organization's mission and culture, their jobs and co-workers, and performance expectations. brings new hires into the organization with a clear understanding of the organization's mission and goals, culture, and key policies and procedures. It also introduces them to their jobs, co-workers, and performance expectations in a positive and, ideally, motivating way.

Results-Based Performance Assessment

focus on accomplishments. This type of assessment is typically quantitative and objective, making it ideal in some circumstances. But results-based measures can sometimes create more problems than they solve. In some jobs the outcomes that are the easiest to measure quantitatively aren't necessarily the most important. measures may ignore the impact of circumstances beyond the employee's control, such as inadequate technology or poor performance by another member of their team. When people are evaluated only on goal attainment, they also may adopt unethical approaches to accomplish goals. common appraisal error: leniancy Although leniency tends to be less pronounced in results-based performance appraisals, it may be further reduced by the use of multiperson comparisons

traditional recruitment

focuses on selling the job and organization to applicants. focus is on communicating the most positive features of the position, perhaps to the point where negatives are downplayed or even concealed. This may create unrealistic expectations that cause costly turnover when new hires become disillusioned and quit.

profit sharing plans

give employees a proportion of the net profits earned by the organization during a performance period.

labor contracts

is a formal agreement between a union and an employer about the terms of work for union members. specify the rights and obligations of employees and management with respect to wages, work hours, work rules, seniority, hiring, grievances, and other conditions of employment. They are developed through collective bargaining, the process through which labor and management representatives negotiate, administer, and interpret labor contracts.

selection techniques

is always a prediction exercise in which the reliability and validity of techniques used are very important

Affirmative Action

is an effort to give preference in employment to women and minority group members who have traditionally been underrepresented.

critical incident technique

keeps a log of someone's effective and ineffective job behaviors can diminish recency bias. Positive example—"Took extraordinary care of a customer who had purchased a defective product from a company store in another city"; negative example—"Acted rudely in dismissing the complaint of a customer who felt that a sale item was erroneously advertised." Such a written record can be discussed in specific terms with the employee and used for both evaluative and developmental purposes.

grant employees stock options

linked to their performance or as part of their hiring packages. give owners rights to buy shares of stock at a future date at a fixed price. Employees gain financially if the stock price rises above the option price, but the stock options lose value if the stock price drops. The logic is that option holders will work hard so that the company performs well and they can reap some of the financial benefits.

graphic rating scale

method of performance measurement that lists traits and provides a rating scale for each trait; the employer uses the scale to indicate the extent to which an employee displays each trait an example of trait based performance assessment. Trait-based approaches are designed to measure the extent to which employees possess characteristics or traits that are considered important in the job. this approach is quick and easy, it tends to be very subjective and, as a result, also tends to have poor reliability and validity.

Labor unions

organizations to which workers belong and that deal with employers on the workers' behalf.They are found in many industrial and business occupations, as well as among public-sector employees including teachers, police officers, firefighters, and government workers.

bonus pay

plans provide one-time or lump-sum payments to employees who meet specific performance targets or make some other extraordinary contribution, such as an idea for a work improvement.

Socialization

process of learning and adapting to the organizational culture. begins with onboarding and which continues during the first six months or so of employment often determines how well a new employee is going to fit in and perform. A technique used by Neil Blumenthal, co-founder of the online eyewear retailer Warby Parker, is to "provide realistic short-term goals to establish quick wins, which will get the employee into a rhythm where he or she is motivated."29 When done well, socialization sets the right foundations for high performance, job satisfaction, and work enthusiasm.

realistic job preview

provide job candidates with all pertinent information about a job and an organization, both positive and negative. intended to be open and balanced

performance coaching

provides frequent and developmental feedback for how a worker can improve job performance minimizes tendency to focus on the evaluation of performance and neglect the discussion of pathways for performance development. helps clarify performance expectations and prevent small problems from getting out of control. At the same time it increases trust and improves the quality of supervisor-subordinate relationships.

internal recruitment

seeks job applicants from inside the organization. Most organizations have a procedure for announcing vacancies through newsletters, electronic postings, and in-house social media sites. They also rely on managers and team leaders to recommend internal candidates for advancement. usually quicker and focuses on employees with well-known per- formance records. A history of internal recruitment builds workforce loyalty and motivation by showing that there are opportunities to advance within the organization. It also helps to reduce turnover rates and facilitates retention of high-quality employees.

External recruitment

seeks job applicants from outside the organization. found through company websites and social media, virtual job fairs, specialized recruiting sites social recruiting

Reliability

that a selection device repeatedly gives consistent results. For example, a personality test is reliable if the same individual receives a similar score when taking the test on two separate occasions

comparable worth

that persons performing jobs of similar importance should be paid at comparable levels. Equal Pay Act of 1963 requires that men and women in the same organization be paid equally for doing work that is equivalent in terms of skills, responsibilities, and working conditions.

validity

that scores on a selection device have a demonstrated correlation with future job performance. there is clear evidence that once on the job, individuals with high scores on an employment test, for example, outperform individuals with low scores.

person-organization fit

the extent to which an individual's values, interests, and behavior are consistent with the culture of the organization.

person-job fit

the extent to which the contributions made by the individual match the inducements offered by the organization the extent to which an individual's knowledge, skills, experiences and personal characteristics are consistent with the requirements of their work.

Human Resource Management Process

the goal of human resource management is to support organizational performance by aligning people and their talents with organizational strategies and objectives. All managers, not just human resource specialists, share the responsibility to ensure that highly capable and enthusiastic people are in the right positions and working with the support they need to be successful individual/job fit and individual/organization culture fit. always focus on establishing both a good fit between the employee and the specific job to be accomplished, and between the employee and the overall culture of the organization

unstructured interview

the interviewer does not work from a formal and pre-established list of questions that is asked of all interviewees. some interviewers rush to judgment based on first impressions of candidates and fail to dig deeper for relevant information. Or, they may dominate the conversation and spend more time talking about themselves or the organization than focusing on the applicant's readiness for the position.

Performance assessment/review/appraisal/evaluation

the process of formally evaluating performance and providing feedback to a job holder. evaluation purpose focuses on past performance and measures results against standards. Performance is documented for the record and for the purpose of allocating rewards such as financial incentives and bonuses. The manager provides an eval- uation of the job holder's accomplishments and areas of weakness. development purpose focuses on future performance. Performance goals and obstacles are identified, along with areas where training or supervisory support may be needed. The manager acts in a counsel- ing role and gives attention to job holders' developmental needs.

leniancy

the tendency to give employees a higher performance rating than they deserve.

Flexibility and work-life balance

work-life balance—how people balance the demands of their careers with their personal and family needs. is enhanced when workers have flexibility in scheduling work hours, work location, and even such things as vacations and personal time off. Flexibility allows people to more easily balance their personal lives and work responsibilities. Research shows that workers who have flexibility, at least with regard to when they begin and end their workday, are less likely to leave their jobs. Flexibility programs are becoming essential for many employers to attract and retain the talented workers they need. Not surprisingly, the "family friendliness" of an employer is now frequently used as a screening criterion by job candidates.