MGT 3200 Chapter 11
major federal employment laws
Equal pay Civil rights Age discrimination Pregancy discrimination Disability discrimination Cant fire if you need time off of work
employee turnover
The loss of employees who choose to leave the company. -Functional turnover -Dysfunctional turnover
downsizing
The planned elimination of jobs in a company. It may actually decrease productivity and lead to loss of skilled workers
performance appraisal
The process of appraising how well employees are doing their jobs.
vestibule training
procedures and equipment similar to those used in actual job are set up in a special area . The trainee is then taught how to perform the job at his or her own pace without disrupting the actual flow of work, making costly mistake, or exposing the trainee and others to dangerous conditions
piecework
pay for each item they produce, and then once you reach the specified number then you receive a pre-determined sum
group incentive plan
pay is based on group performance.
merit pay systems
pay raises and bonuses are based on the merit rating received from their boss.
decisions involved in an effective compensation design include
pay-level (plan) job evaluation pay structure -determines what kind of organization we want to be -you are willing to pay more for what you find adds more value to the company
human resources management process
planning - organizational strategic planning ->HRM environmental scanning -> human resource planning programming -HR activities evaluating - results
resumes
pose a problem because of false data help put the best foot forward
results of HR management process include
productivity quality innovation satisfaction turnover absenteeism health
diversity training
programs that focus on identifying and reducing hidden biases against people with differences and developing the skills needed to manage a diversified workforce
administrative performance appraisal
provide managers with information they need to make salary, promotion, and dismissal decisions; helps employees understand and accept the basis of those decisions -making decision about employee, fire them or give them a raise
training
providing opportunities for employees to develop the job-specific skills, experience, and knowledge they need to do their jobs or improve their current performance
situational questions
question for when you are hiring inexperienced people hypothetical situations where they explain how they would act
job-knowledge questions
questions that are extracted from the exact job the person is being hired for
behavioral questions
questions that ask about what you have actually done in the past
bona fide occupational qualification (BFOQ)
reasonably necessary to the normal operation of that particular business. -could be used when hiring a character for a movie -could be used when you are hiring a baptist pastor so you don't hire a catholic priest
labor surplus
reconciling supply and demand demand<supply Use attrition Lay off employees Transfer employees to other areas
labor deficit
reconciling supply and demand demand>supply Hire new employees Promote current employees to new positions Outsource work to contractors
HR activities include
recruitment selection outplacement training and development performance appraisal compensation
Each employee selection test must address
reliability and validity
stock options
reserved for people higher up in organizations, can purchase stock at a set price, then you can sell it on the stock market for a bunch of money
gainsharing plans
reward employees for increasing productivity or saving money in areas under their direct control
structured interviews
selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers.
talent is rare
skills knowledge & abilities are not equally available to all competitors
Values advocated by HR
strategic ethical legal financial
types of interviews
structured interviews unstructured interviews semi-structured interviews
evaluate the training programs effectiveness
surveys, tests, improved behavior etc.
effective systems
take into account the organization, the position & the individual
team training
teaches employees the skills they need to work together and helps them to interact
aptitude test
testing to see if you have the cognitive ability to do the job
pay structure
the choice of how to price different jobs within the organization
recruitment
the development of a pool of applicants for jobs in an organization—can be internal or external.
employment at will
the legal concept that an employee may be terminated for any reason -employers don't need a specific document for firing
commission
the more you sell the more you make
internal factors
the organization's compensation policy, the worth of each job, and the employee's relative worth, and the employer's ability to pay
programming
the organizations implement specific human resource activities
validation
the process of determining how well a selection test or procedures predict future job performance (want selection methods that can correctly predict people performance)
biographical data
(biodata) surveys about personal background and job background, past behavior is a good indicator of future behavior
work sample test
(performance tests) give you a task is very similar to the exact job that you will be doing at work, measure your ability to perform
group discussion
- small groups of trainees actively discuss specific topics. the instructor may perform the role of discussion leader
getting background information
--Conduct criminal record checks --Ask applicants to sign a waiver to check references, run a background check, or contact people with knowledge of work history --Ask applicants if there is anything they want the company to know --Consider hiring a private investigator
advantages of internal recruiting
--Employers know their employees --Employees know their organization --Employees may be motivated by advancement --Outside recruitment may demoralize employees
termination interview do's
--Give as much warning as possible for mass layoffs --Sit down one on one with the individual in a private office --Complete a termination session within 15 minutes --Be sure the employee hears about his or her termination from a manager, not a colleague
wonderlic test description
--It consists of 50 multiple choice questions to be answered in 12 minutes. --The score is calculated as the number of correct answers given in the allotted time. --A score of 20 is intended to indicate average intelligence (corresponding to an intelligence quotient of 100). --Wonderlic, Inc. claims a score of at least 10 points suggests a person is literate.
termination interview dont's
--Leave room for confusion when firing --Allow time for debate during a termination session --Make personal comments when firing someone --Rush a fired employee offsite unless security is an issue
disadvantages of internal recruiting
--Limited applicant pool --Inhibit a company from changing the nature or goals of the business by bringing in outside candidates
downsizing tips
--Practice is becoming more common to cut costs, occurs during mergers where functions are consolidated and new technologies & business practices replace jobs. --Done appropriately it can make firms more agile. --Can be used to "de-layer" tall organizations --Can be traumatic for an organization & its employees --Should be a last resort—must be done with careful analysis & strategic thinking Must identify and protect talented people
guidelines for conducting layoffs
--Provide clear reasons and explanations for the layoffs. --To avoid laying off employees with critical or irreplaceable skills, knowledge, and expertise, get input from human resources, the legal department, and several levels of management. --Train managers in how to tell employees that they are being laid off (i.e., stay calm; make the meeting short; explain why, but don't be personal; and provide information about immediate concerns such as benefits, finding a new job, and collecting personal goods). --Give employees the bad news early in the day, and try to avoid laying off employees before holidays. --Provide outplacement services and counseling to help laid-off employees find new jobs. --Communicate with employees who have not been laid off to explain how the company and their jobs will change.
applying job analysis, descriptions, specifications
--Used throughout the staffing process to ensure that selection devices and decisions are job-related. --Help companies meet legal requirements that HR decisions are job-related. --Provides the information required by virtually every HR activity --Assists with the essential HR programs (recruitments, training, selection, appraisal, & reward systems). --Helps employers to defend themselves against lawsuits involving employment practices --Helps increase the value added by employees b/c it clarifies what is required to perform effectively.
develop analytical and problem-solving skills
--case studies --coaching and mentoring --group discussions
impart information and knowledge; develop analytical and problem-solving skills; and practice, learn, or change job behaviors
--computer-based learning
conducting the interview
--create a relaxed, non stressful interview atmosphere --review the applicants application form, resume, and other information --allocate enough time to compete the interview without interruption --put the applicant at ease; don't jump right into heavy questioning --tell the applicant what to expect, explain the interview process --obtain job-related information from the applicant by asking those questions prepared for each KSAO --describe the job and the organization to the applicant. applicants need adequate information to make a selection decision about the organization
HR programming
--explain how companies use recruiting to find qualified job applicants --describe the selection technique and procedures that companies use when deciding which applicants should receive job offers --describe how to determine training needs and select the appropriate training methods --discuss how to use performance appraisal to give meaningful performance feedback describe basic compensation strategies
impart information and knowledge
--films and videos - share information, illustrate problems and solutions, and effectively hold trainees attention --lectures - trainees listen to instructors oral presentations --planned readings - trainees read about concepts or ideas attending training
planning the interview
--identify and define the knowledge, skills, abilities, and other (KSAO) characteristics needed for successful job performance --for each essential KSAO, develop key behavioral questions tha will elicit examples of past accomplishments, activities, and performance --for each KSAO, develop a list of things to look for in the applicants responses to key questions
after the interview
--immediately after the interview, review your notes and make sure they are complete --evaluate the applicant on each essential KSAO --determine each applicants probability of success and make a hiring decision
training objectives
--impart information and knowledge --develop analytical and problem-solving skills --practice, learn, or change job behaviors --impart information and knowledge; develop analytical and problem-solving skills; and practice, learn, or change
4 phases of a training program
--needs assessment --training program design --decisions about training methods and location --evaluate the training programs effectiveness
practice, learn, or change job behaviors
--on the job training (OJT) --role-playing --simulations and games --vestibule training
topics to discuss in a performance appraisal feedback session
--overal progress - an analysis of accomplishments and shortcoming --problems encountered in meeting job requirements --opportunities to improve performance --long-range plans and opportunities - for the job and for the individuals career --general discussion of possible plans and goals for the coming year
behavioral observation scale
--understand what the employee is supposed to be doing, and then assess them on that particular job --easier to justify responses because you are looking at specific actions --better performance means better behaviors occur more often
background checks
--used to verify accuracy of information that applicants provide about themselves; e.g. educational institutions etc. --Used to decrease liability for negligent hiring. --Could include social security verification, past employment records, criminal background, credit checks --Internet searches (e.g. Google, LinkedIn, Facebook)
guidelines for performing appraisals
-Base performance standards on job analysis -Communicate performance standards to employees -Evaluate employees on specific performance-related behaviors rather than on a single global or overall measure -Document the performance appraisal process carefully -Use more than one rater -Take legal considerations into account. (only fair if you assess someones performance based on job description, you must communicate what they are responsible for, don't ambush the person, give them time to fix the problem before you rate them)
topics for evaluating
-Dealing with satisfaction, quality and productivity issues -Discuss the four kinds of employee separations -Outplacement is the process of helping people who have been dismissed from the company to regaining employment elsewhere.
external environment
-Evaluation of workforce trends to make projections. -Demographic trends have contributed to a shortage of skilled and highly educated workers—e.g. retiring baby boomer generation -Remedial and training budgets have increased to address these issues. (i.e. the lack of skilled labor)
labor supply forecasts
-How many & what types of employees the organization actually will have. -Estimates the number & quality of its current employees and the available external supply of workers -Derived from the organization's perspective & experience with turnover, terminations, retirements, promotions & transfers.
during feedback managers should provide
-Understanding -Support -Specific and constructive information related to clear goals or behaviors -An opportunity for the employee to respond
frame-of-reference training
-a group of trainees learns how to do performance appraisals by watching a video of an employee at work and then evaluating the person's performance -a trainer shares his or her evaluations, and trainees' evaluations are compared with experts' -expert explains his or her evaluation -process repeated until the differences are minimized
disadvantages of E-learning
-not always the appropriate method - not effective for changing behavior or developing problem- solving skills -require significant investment in technology - many employees find it boring and unengaging
early retirement incentive program (ERIP)
-offer financial benefits to employees to encourage them to retire early. -reduces number of employees, lowers costs, creates new openings
advantages of E-learning
-reduce travel costs - increase productivity - decrease employee stress
subjective performance measures
-require that someone judge or assess a worker's performance -Behavioral appraisals focus on observable aspects of performance -Trait appraisal involves judgments about employee performance on the possession of a trait such as initiative, leadership & attitude.
employment separation
A broad term covering the loss of an employee for any reason. anytime an employee leaves for any reason
difficult to imitate
A group of well-chosen, motivated people is difficult to imitate; e.g. SW Air
job analysis
A purposeful, systematic process for collecting information on the important work-related aspects of a job. Is a tool for determining what is done on a given job & what should be done on that job. --Work activities --Tools and equipment used to do to the job --Context in which the job is performed --The personnel requirements for performing the job
human resource management involves
Attracting Talent Maintaining a well-trained, highly motivated and loyal workforce Managing diversity Devising effective compensation systems Managing layoffs Containing health care & pension costs
advantages of external recruiting
Brings in new blood Can inspire motivation Sources of outside applicants include job boards, company web sites, employee referrals, newspaper ads & college campus recruiting.
labor demand forecasts
Determining how many and what type of people are needed. Derived from organizational plans Can be the most difficult part of HR Planning
topics to avoid in an interview
Children Age Disabilities Physical characteristics Name Citizenship Lawsuits Arrest records Smoking AIDS/HIV
pay-structure decisions
Concerned with internal pay distribution
HR planning
Explain how different employment laws affect human resource practice How do labor supply & demand impact HR? Performing job analysis & its impact.
federal employment laws
General effect of the laws—employers may not discriminate in employment decisions based on sex, age, religion, color, national origin, race, disability.
terminating employees
In most situations, firing should not be the first option. Employees should be fired only for a good reason (wrongful discharge). Employees should always be fired in private
who should do the appraisal
Managers & supervisors Peers & team members Subordinates Internal & external customers Self -appraisal A 360 degree appraisal involves feedback from all individuals involved with the employee—creates a complete picture.
disadvantages of external recruiting
More difficult to do Adjustment & orientation time is longer Morale problems can develop among those employees within the organization who feel qualified for the job
optional benefits
Pension plans Hospital insurance (for now!) 401K plans Retirement programs
types of pay-variability decisions
Piecework commission Profit sharing Employee stock ownership plans (ESOP) Stock options
effective interviews
Problems with interviews can be overcome following these steps: --Carefully train interviewers --A systematic plan for the interview should be in place including physical space & required information --Put the applicant at ease --Facts obtained should be recorded immediately --Evaluate how effective the interviews are at obtaining quality employees.
external recruiting
Process of developing a pool of qualified job applicants from outside the company. Advertising Employee referrals Walk-ins Outside organizations employment services Special events Internet job sites
improving performance reviews
Separate developmental feedback from administrative feedback Performance appraisal feedback sessions should be based on employee self-appraisals What people do with the feedback matters; it helps if people discuss their performance feedback with others, and discuss it with people who provided it
structured interview questions
Situational questions Behavioral questions Background questions Job -knowledge questions
selection tests
Specific ability tests Cognitive ability tests Biographical data (biodata) Work sample tests (performance tests) Assessment centers in-basket exercise Leaderless group discussion
HR correlation
Studies have shown that effective HR correlates to higher stock market values of companies. Employees can be an organization's most valuable resource. HR & Strategy decisions must be linked through staffing decisions, benefits and other methods
development
Teaching managers and professional employees broad skills needed for their present & future jobs (may not be organization specific).
pay-variability decisions
The extent to which employees' pay varies with individual and company performance
compensation
The financial and nonfinancial rewards that organizations give employees in exchange for their work.
benefits required by law
Worker's compensation Social security Unemployment insurance Medical insurance
individual incentive plan
a plan to compare a worker's performance against an objective standard, with pay determined by the employees performance
wonderlic cognitive ability test
a popular group intelligence test used to assess the aptitude of prospective employees for learning and problem-solving in a range of occupations.
job specification
a summary of the qualifications needed to successfully perform a job; describes the skills, knowledge, abilities, an other characteristics needed to do it.
job description
a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job; tells about the job itself
Types of feedback
administrative developmental
tools for selection
application forms resumes interviews references background checks
validity
assess the accuracy of the selection test.
types of training in organizations
orientation team training diversity training management training
unstructured interviews
nondirective selection technique where the interviewer asks different interviewees different questions
evaluating training
can be done four different ways: reactions learning behavior results -assess these topics in order to evaluate the training and how well it worked and if it accomplished what it was supposed to do
decisions about training methods and location
can be on or off site
reward systems
can serve the strategic purposes of attracting, motivating & retraining people.
special events
career services, conferences
case studies
cases are analyzed and discussed in small groups. the cases present specific problem or decision, and trainees develop methods for solving the problem or making the decision
external factors
conditions of the labor market, area wage rates, the cost of living, the use of collective bargaining (union negotiations) and legal requirements.
reliability
consistency of test scores over item and across alternative measurements
employment references
contacting previous employers or coworkers to learn more about the candidate
voluntary separation
occurs when employees decide to quit or retire.
pay-level plan
decisions about whether to pay workers at a level above, below, or at current market wages.
human resource planning includes
demand forecasts internal labor supply external labor supply job analysis
evaluating
determine whether human resources are producing the results needed to contribute to the organization's business plan.
job evaluation
determines the worth of each job by determining market value of skills required to perform it; (different rates for jobs of similar worth within the same job family)
termination interviews
discussion between a manager & an employee about the employee's dismissal.
termination
dismissal of employees for poor performance or other reasons
coaching and mentoring
done by managers: involves informal advice, suggestions, and guidance. this method is helpful for reinforcing other kinds of training and for trainees who benefit form support and personal encouragement
how organizations terminate employees
downsizing termination employment at will termination interviews
involuntary separation
occurs when employers decide to terminate or lay off employees
profit sharing
employees received a portion over and above regular compensation when company does well
phased retirement
employees transition to retirement by working reduced hours before completely retiring
in-backet exercise
example of an email that you received from a customer while you were manager the people at the assessment center evaluate and grade your response
simulations and games
experiential exercises place trainees in realistic job-related situations and give them the opportunity to experience a job-related condition in a relatively low-cost setting. the trainee benefits from hands-on experience before actually performing the job, where mistakes may be more costly
orientation
familiarizes the new employees with their jobs, work units, and the organization in general
360 degree feedback
feedback comes from four sources: the boss, subordinates, peers and coworkers, and the employees themselves
management training
focuses on improving manager's people skills
types of group incentive plans
gainsharing plans profit-sharing plans merit pay systems
internet job sites
online sources with job posting
employee stock ownership plans
give employees shares of the company, motivates the workers since if organization are successful then you will be able to sell the shares later for more
Types of subjective performance scales
graphic rating scale behavioral observation scale
employee benefit plans
have been getting more attention and currently make up a far greater percentage of the total payroll than in past decades. -most companies biggest cost is labor cost, the benefits given to workers
strategic HR management
helps create competitive advantage because: people create value talent is rare difficult to imitate people can be organized for success
types of pay-structure decisions
hierarchical pay structures compressed pay structures
cognitive ability test
highly predictive of job performance in all areas, higher of this ability leads to higher success at job, good at learning new things
outside organization
hiring a company, hiring a head hunter
employment services
hiring temps after they work for the company for a while
behavior
how much employees actually changed their on-the-job behavior because of training
learning
how much employees improved their knowledge or skills
results
how much training improved job performance, such as increased sales or quality, or decreased costs
reactions
how satisfied trainees were with the program
semi-structured interviews
hybrid of structured and unstructured interviews
continual improvement
increases both personal & organizational effectiveness occurs because of training and development
types of incentives
individual incentive plan group incentive plan
computer based learning
interactive videos, software, CD_ROMS, personal computers, teleconferencing, and the internet may be combined to present multimedia-based training
designing an appropriate pay plan depends on
internal factors external factors
types of employment separation
involuntary separation voluntary separation
hierarchical pay structures
involve big differences from one pay level to another
360 degree appraisal
involves feedback from all individuals involved with the employee—creates a complete picture.
three stages of HR management
involves getting the right number of qualified people into the right job at the right time planning programming evaluating
results of job analysis
job description job specification
HRM environmental scanning includes
labor markets technology legislation competition economy
planning
managers must know the organization's business plans to make sure they have the right number & kind of people
application forms
may only ask for valid, job-related information
objective performance measures
measures of performance that are easily and directly counted or quantified (output, scrap, sales, etc)
graphic rating scale
most common type of measure easy to put together but susceptible to error not much information that is driving the decision to pick the number
on-the-job training (OJT)
new employees are assigned experienced employees. the trainee learns by watching the experienced employee perform the job and eventually by working alongside the experienced employee. gradually, the trainee is left on his or her own to perform the job
internal recruiting
the process of developing a pool of qualified job applicants from people who already work within the company; i.e. considering current employees for promotions & transfers --job posting --career path
human resources management
the process of finding, developing, and keeping the right people to form a qualified work force and is one of the most difficult and important of all management tasks.
selection
the process of gathering information about job applicants to decide who should be offered a job It is a set of methods used to make decisions about whom to hire. (occurs after recruitment)
needs assessment
the process of identifying and prioritizing the learning needs of employees (i.e., the jobs, people and departments that need training)
people create value
they can lower costs, provide something unique to customers etc.
role-playing
trainees assume job-related roles and practice new behaviors by acting out what they would do in job-related situations
training program design
training objectives & content are established from the needs assessment
compressed pay structures
typically have fewer pay levels and smaller differences in pay between levels. - idea is that there will be higher levels of cooperation because everyone feels equal because they're all getting paid about the same
developmental performance appraisal
use information to identify & plan training, experience or other improvement that employees require. -assess the situation to help employee improve
profit-sharing plans
usually implemented in the division organization as a whole, although some incentives may still be tailored to unit performance
people can be organized for success
when properly put together, teams can be deployed quickly.