Chapter 7

Demand for employees comes from the

-Demand for the organizations product and services. Generally, managers attempt to establish the number and mix of people needed to reach that revenue by estimating total revenue. -One exception is when there is scary supply of qualified candidates. This could limit the number of products produces or services provided-which decreases the amount of incoming revenue

Thee most popular forms of multi person evaluations are

-Group order ranking -Individual ranking -Paired comparison

There are several reasons why an employee's performance might not be up to par, and each has it own action

-In the case of job mismatch, the individual can be reassigned to a better-matched job -If employee has received inadequate training, training should be provided -An employee may also display a discipline problem, and lack the desire to do the job.

Orientation

-Job orientation -Work unit orientation -Organization orientation

Factors that influence the compensation and benefit packages

-Kind of job performed -Kind of business -Unionization -Labor or Capital Intensive -Management Philosophy -Geographical location -Company profitability -Size of Company -Employee's Tenure and Performance

An orientation process introduces new hires to the organization. The major goals are to:

-Reduce the initial anxiety all new employees feel as they begin in new job -Familiarize new employees with the job, the work unit, and the organization as a whole -Facilitate the outsider-insider transition

A job specification

-States all the minimum qualifications that a person must process to perform a given job successfully -It identifies the knowledge, skills, and attitudes needed to do the job effectively. -The job description and job specifications are important documents as managers begin recruiting and selecting -They focus the managers attention on the list of necessary qualifications, assist in determining whether candidates are qualified, and help ensure that the hiring process does not discriminate

Job analysis

-a process in which workflows are analyzed and the skills and behaviors necessary to perform jobs are identified. -The job analysis helps determine the kinds of skills, knowledge, and attitudes needed to successfully perform each job -This information is then used to develop or revise job description and job specifications

If an incident occurs, the courts wants to know

1. Did the organization know about, or should the organization have known about thie alleged behavior 2. What did the managers do to stop it

Three situations in which verbal or physical conduct toward an individual is considered sexual harassment:

1. It creates an intimidating, offensive or hostile environment 2. It unreasonably interferes with an individuals work 3. It adversely affects an employee's employment opportunities

How to be a good interviewer

1. Review the job description and job specification to help in assessing the applicant 2. Prepare a structured set of questions to ask all applicatns for the job 3. Review an applicants resume before meeting him or her 4. Ask questions and listen carefully to the applicants answere 5. Write your evaluation of the applicant while the interview is still fresh in your mind

A decision is correct when

1. The applicants who was hired proved to be succesful on the job, or 2. When the applicant who was not hired would not have been able to do the job

Research shows that potential biases can creep into interviews if they're not well structured and standardized

1. The interviewer tends to hold a stereotype of what represents a good applicant 2. The interviewer tends to favor applicants who share his or hers own attitudes 3.In order in which applicants are interviewed will influence evaluations 4. The order in which information is elicited during the interview will influence evaluations

Recruiting Applicants

5 different types

Handling Layoffs

7 different ways

HRM Process and Influences

8 important HRM activities

Professional recruiting organizations

Advantages: Good knowledge of industry challenges and requirements Disadvantages: Little commitment to specific organization

Employee referrals

Advantages: Knowledge about the organization provided by current employee: can genrate strong candidates because a good referral reflects on the recommender Disadvantages: May not increase the diversity and mix of employees

College recruting

Advantages: Large centralized body of candidates Disadvantages: Limited to entry-level positions

Internet

Advantages: Reaches large numbers of people: can get immediate feedback Disadvantages: Generates many unqualified candidates

Company Web site

Advantages: Wide distributioin: can be targeted to specific groups Disadvantages: Generates many unqualified candidtaes

If a test is reliable

Any individual's score should fairly stable over time, assuming that the characteristic being measured is also stable. To be effective predictors, selection devices must possess an acceptable level of consistency.

Sexual Harassment

Any unwanted action or activity of a sexual nature that explicitly or implicitly affects an individual's employment, performance, or work envirionment

In behavioral or situation interview

Applicants are observed not only for what they say but also for how they behave Applicants are presented with situations and ask to deal with the situation. Research shows that these behavioral interviews are nearly eight times more effective for prediction succesful job performance than traditional interviews are

Board representatives

Are employees who sit on a company's board of directors and represent the interest of the firm's employees.

Ways managers can reduce the trauma associated with downsizing

Communicate openly and honestly: -inform those being let go as soon as possible -tell surviving employees the new goals and expectations -explain impact of layoffs Follow any laws regulating severance pay or benefits Provide support/counseling for surviving employees Reassign roles according to individuals talents and backgrounds Focus on boosting morale: -offer individualized reassurance -continue to communicate, especially one-on-one -remain involved and available

Determining Future Employment Needs

Demand for human resources (employees) is a result of the demand for the organization's products or services

7-4

Describe strategies for retaining competent, high performing employees

7.1

Describe the key components of the human resource management process and the important influences on that process

Learning outcomes

Describe: the key components of the human resource management process and the important influence on that process Discuss the tasks associated with identifying an selecting competent employees Explain how employees are provided with needed skills and knowledge Describe strategies for retaining competent, high-performing employees Discuss contemporary issues in managing human resources

In Australia

Discrimination laws were not enacted until the 1980s and generally apply to women( who need improves opportunities) Labor and industrial laws were overhauled in 1997 with the goal of increasing productivity and reducing union power

7-5

Discuss contemporary issues in managing human resources

7-2

Discuss tasks associated with identifying and selecting competent employees

In the past decade

Downsizing has become a relevant strategy for meeting the demands of a dynamic environment.

Classroom lectures

Employees attend lectures designed to convey specific information

Vidoeconferencing/teleconferencing

Employees listen to or participate as information is conveyed or techniques demonstrated

Job rotation

Employees work at different jobs in particular area, getting exposure to a variety of tasks

Mentoring and coaching

Employees work with an experienced worker who provides information, support, and encouragement

b) Critical incidents

Examples of critical behaviors that were especially effective or ineffective Ad: Rich examples, behaviorally based DisAd: Time consuming, lack quantifications

7-3

Explain how employees are provided with the needed skills and knowledge

Any selection device that managers uses must also demonstrate validity

Federal law pro-habits managers from using any selection device that cannot be shown to be directly related to successful job performance. This constraint applies to entrance tests too. Managers must be able to demonstrate that, once on the job, individuals with high scores on such a test outperform individuals with low scores. Consequently, the burden in on the organization to verify that any selection device it uses to differentiate applicants is related to job performace

f) 360 degree appraisal

Feedback from full circle of those who interact with employee

Identifying and Selecting Employees

HRM Process: 1. Employment planning 2. Recruitment and downsizing 3. Selection

Reduced workweeks

Having employees work fewer hours per week, share jobs, or through furlough perform their jobs on a part-time basis

Job sharing

Having employees, typically two part-timers, share one full-time position

Controlling HR Costs

Health Care Pensions

Once managers know their current staffing levels they can respond

If job opening exist, they can begin recruitment- that is the process of location, identifying, and attracting capable applicants -In contrast, if employment planning indicates a surplus, managers may want to reduce the labor supply and intimate downsizing or restricting activities

The first three activities (Adding staff through recruitment, reducing staff through downsizing, and the selection process)

In the HRM process address employment planning: adding staff through recruitment, reducing staff through downsizing, and the selection process

Downsizing

Is the planned elimination of jobs from an organization. When an organization has too many employees- which may happen when its faces with an economic crisis, declining market share, overly aggressive growth, or when its been poorly managed- one option for improving profits is to eliminate excess workers

Closing the deal

Its just as important to retain good people as it is to hire them in the first place

Job analysis results in:

Job description--> describes the job Job specification--> describes the person

To increase job satisfaction among employees and reduce turnover

Managers should consider a realistic job preview (RJP)

Since the mid 1960s

Many state laws have added to the provision of the federal laws. Therefor, today's employers must ensure that equal employment opportunities exists for job applicant and current employees. Decisions regarding who will be hired, or which employees will be chosen for a management training program, must be made without regard to race, sex, religion, age, color, national origin, or disability

Retaining Competent Employees

Methods a-g

Workforce Diversity

Nontraditional recruitment sources Non-discriminatory selection Accommodation of diverse needs Diversity consciousness workshop Mentoring programs

Attrition

Not filling openings created by voluntary resignations or normal retirements

Unionization rates have been declining in Mexico

One hiring law gives employees 28 days to evaluate new employee's work performance, after which the employee is granted job security and termination is both difficult and quite expensive.

Firing

Permanent inventory termination

Affirmative Action

Programs that ensure that decisions and practices enhance the employment, upgrading, and retention of members of protected groups

Early retirements

Providing incentives to older and more-senior employees for retiring before their normal retirement date

HRM

Right people, Right Place, Right Time

Issues with performance evaluation systems

Systemsmay be outdated due to: -downsizing *because supervisors may have more employees to manage, making it difficult to have extensive knowledge of each one's performance -Project teams *In such structures, others(not managers) may be better able to make accurate assessments

Layoffs

Temporary involuntary termination; may last only a few days or extend to years

Selection Devices: Tests

Tests... not just for school

Effective Interviewing

The interview is the most universal selection device, along with the application form. Interviews can be reliable and valid selection tools when structured, well organized, and limited to relevant questioning

The Legal Environment

The primary environmental force that affects an organization is the legal environment. HRM practices are governed by laws, which vary from country to country, and further vary within states and provinces. As a manager, it will be important for you to know what you legally can and cannot do

Validity

The proven relationship between selection device and some relevant criterion

Human Resource Management

The quality of an organization is, to a large degree, determined by the quality of the people it employs. Staffing and HRM decisions and actions are critical to ensure to ensuring that the organizations hires and keeps the right people. Getting that done is what human resources management (HRM) is all about

Accept errors

When we hired applicatns who performed poorly

Affirmative action programs

Which ensure that decisions and practices enhance the employment, upgrading, and retention of members of protected groups, such as minorities and females. Although these regulations have significantly helped to reduce employment discriminations and unfair employment practices, they have also reduced managements control over HR decisions.

Conducting Employee Assessments

Why is JOB ANALYSIS so important

The two most common forms of representative participation are

Work councils and board representatives

but g

a multiperson comparison, is a way to compare one person's performance with that of one or more individual and is a relative, not absolute, measuring device

A negative consequence of downsizing is layoff-survivor sickness

a set of attitudes, perceptions, and behaviors of employees who survive involuntary staff reductions. Systems include job insecurity, perceptions of unfairness, guilt, depression, stress from increased workload, fear of change, loss of loyalty and commitment, reduces effort, and an unwillingness to do anything beyond the required minimum

Discrimination on the basis of language is not prohibited

anywhere in Canada -except in Quebec.

Interviewers who only expose an organizations positive characteristics

are likely to have a workforce that is dissatisfied and prone to high turnover

Employee pension plans

are the other area where organizations are looking to control costs. Pension commitments have become such an enormous burden that most companies can no longer afford them. Obviously, the pension issue is one that directly affects HR decisions when organizations want to attract talented, capable employees by offering them desirable beneftis

a) through f)

are ways to evaluate employee performace against a set of established standards or absolute criteria

Most training takes place on the job

because its simple and usually costs less, but many other training methods are available.

Sexual harrasment

can occur between members of the opposite or the same sex, and between employees of the organization or between employee and non-employee

Accept errors

cost the organization in wasted training, the cost generated or profits forgone because of the employee's incompetence, severance, and the additional recruiting and selection screening

a) Written essay

descriptions of employee's strengths and weaknesses Advantage: Simple to use Disadvantage: More a measure of evaluator's writing ability than of employees actual performance

Pair comparision

each employee is compared with every other employee in the comparison group and rated as either superior or weaker. This is an arduous task when assessing large numbers of employees

On-the-job

employees learn how to do tasks simply by performing them, usually after an initial introduction to the task

CD-ROM/DVD/videotapes/auditapes/podcasts

employees listen to or watch selected media that convey information or demonstrate certain techniques

E-learning

employees participate in internate based learning, including simulations or other interactive models

Mobil learning

employees participate in learning activities delivered via mobile devices

Experiential exercises

employees participate in role-playing, simulations, or other face-to-face types of training

Workbooks/manuals

employees refer to training workbooks and manuals for information

g) Multiperson

evaluation comparison of work group

e) MBO

evaluation of accomplishment of specific goals

Individual ranking

evaluator lists employees in order from highest to lowest performance levels. The difference between the first and second employee is the same as between any two other employees

Group-order ranking

evaluator places employees into a particular classification, eg. top fifth. The number of employees in each classification must be as equal as possible

Job orientation

expands on the information the employee obtained during the recruitment and selection stages, clarifies the new employees specific duties and responsibilities as well as how his or her performance will be evaluated, and corrects any unrealistic expectations new employees might hold about the job.

Work unit orientation

familiarizes an employee with the goals of the work unit, makes clear how his or her job contributes to the units goals, and provides an introduction to his or her coworkers

Skill-based pay system reward employees

for the job skills and competencies they demonstrate, and research shows that these systems tend to be more successful in manufacturing organizations and in organizations pursuing technical innovations

The Workplace Relation Bill

gives employers greater flexibility to negotiate directly with employees on pay, hours, and benefits and also simplifies federal regulation of labor-management relations

Since 2002

health care costs have risen, hitting 3.2 trillion in 2013 and in 2014 rising 5% over the previous year. The new federal health care mandates are expected to add those costs. As a result, some organizations are institution wellness programs and initiatives aimed at reducing obesity and smoking and promoting fitness through incentives

The last steps (performance, appraisal, compensation and benefits)

in the HRM process identifying performance goals, correct performance problems if necessary, and help employees sustain a high level of performance over their entire work lives. The activities include performance appraisal, compresention and benefits.

Variable pay system

in which an individual's compensation is contingent on performance 90% of US organizations use variable pay plans

Realistic job preview

includes both positive and negative information about the job information about the job and the company. For managers, realistic job previews offer a major insight into the HRM process: Its just as important to retain good people as it is to hire them in the first place

Reject errors means

increased selection costs because more applicants have to be screened but can also open the organization to charges of employment discrimination

Organization orientation

informs the new employee about the organizaition's goals, history, philosophy, procedures, and rules. This information inclused relevant HR policies such as work hours, pay procedures, overtime requirments, and benefits, and often a tour of the organizations physical facilities. Mangers are responsible for making the intergration of a new employee into the organization as smooth and anxiety-free as possible.

A job description

is a written statement that describes what a job holder does, how its done, and why its done. It typically included job content, job environment, and condition of employment

Employee training

is learning experiences that seeks relatively permanent change in employees by improving their ability to perform on the job. Training may involve what employees know, how they work, or their attitudes towards their jobs, coworkers, managers, and the organization

Employment planning

is the process by which managers ensure that they have the right number and kinds of people in the right places at the right times: people who are capable of effectively and efficiently completing those tasks that will help the organization achieve its overall goals This process translates the organization's mission and goals into HR plan that allows the organization to achieve those goals by: 1. Assessing current and future human resource needs 2. Developing a plan to meet those needs

The goal of compensation administration

is to design a cost-effective pay structure that attempts to ensure that pay levels will be perceived as fair by all employees

The major intent of any selection activity

is to reduce the probability of making rejects errors and accept errors while increasing the probability of making correct decisions. We do this by using reliable and valid selection procedures

Work councils

link employees with management. They are group of nominated or elected employees who must be consulted when management makes decisions involving personnel.

c) Adjective rating scales

lists descriptive performance factors with numerical ratings Ad: Provide quantitative data: less time consuming than others DisAd Do not provide depth of job behavior assessed

After assessing both current capabilities and future needs

managers can estimate shortage-both in number and kind- and highlight areas in which the organization is overstaffed. They can develop a plan that matches thses estimates and projects future employee needs and availability

Transfer

moving employees either laterally or downward; usually does not reduce costs but can reduce intraorganizational supply-demand imbalances

d) BARS

rating scale+examples of actual job behaviors

German legislatoin

requires companies to practice reprenstative participation, the goal of which is to redistribute power within the organization, putting labor on more equal footing with the interests of managment and stockhodlers

Improving workforce diversety

requries managers to widen their recruiting net and turn to nontraditional recruitment sources such as women's job networks, over-50 clubs, urban job banks, and disabled people's training centers

The selection process

seeks to predict which applicants will be successful if hired

Once you (Orientation and training)

select competent people, you need to help them adapt to the organization and ensure that their job skills and knowledge are kept current. Which is accomplished by the next two activities in the HRM process: orientation and training

After diverse set of applicants exists

selection must be non-discriminatory, applicants should be made comfortable with the organization's culture, and management should express its desire to accommodate their needs

It is estimated that

sexual harassment is the single largest financial risk facing companies today and results in million of dollars lost of absenteeism, low productivity and turnover

Many organizations provide

special workshops to raise diversity consciousness among current employees, as well as programs for new employees that focus on diversity issues. Some companies also have special mentoring programs that deal with reality that lower-level female and minority managers have few role models with whom to identify

Evidence show

that tests of intellectual ability, spatial and mechanical ability, perceptual accuracy, and motor ability are moderately valid predictors for many semiskilled and unskilled operative jobs in industrial organizations However, an enduring criticism of written test is that intelligence and other tested characteristics may not necessarily be good indicators of an applicant's job performace

Most studies show

that the best applicants come from employee referrals. Because the recommenders know both the job and the person recommended, and want to protect their reputation, they tend to only refer well-qualifed applicants. However managers shouldn't always opt for the employee-referred applicant when such referrals may not increase the diversity and mix of the employees

Selection devices

the best known include written tests, performance-simulation test, and interviews

Assessment centers

the best known performance simulation test too which simulate real problems one may face on the job suited to managerial personanel

Work sampling

the best known performance-simulaton tests ( a miniature replica of the job) its suited to persons applying for routine jobs

Reliability

the degree to which a selection device measures the same thing consistently

The higher the knowledge, skills, and abilities-and the greater the authority and responsibility

the higher the pay

Reject errors

when we reject applicants who would have performed successfully

Performace-simulation test

which are made up of actual job behaviors

employee benefits

which are non-financial rewards designed to enrich employees lives.

Human Resource inventory

which generally lists the name, education, training, prior employment, language spoken, capabilities, and specialized skills of each employee in the organization