Human Resource Management
Most Common Reason For Outsourcing
-Cost savings -Increased ability to recruit and manage talent Improved HR service quality -Protection of the company from potential lawsuits by standardizing processes such as selection and recruitment
intangible assets
assets that do not have physical substance, include human capital, customer capital, social capital, and intellectual capital. Intangible assets are equally or even more valuable than financial and physical assets, but they are difficult to duplicate or imitate.
Internal Analysis
attempts to identify the organization's strengths and weaknesses. It focuses on the quantity and quality of resources available to the organization—financial, capital, technological, and human resources. Organizations have to accurately assess each resource to decide whether it is a strength or a weakness.
Big Data
refers to information merged from HR databases, corporate financial statements, employee surveys, and other data sources to make evidence-HR decisions and show that HR practices influence the organization's bottom line, including profits and costs.
Competing through Sustainability
refers to the company's ability to meet its needs without sacrificing the ability of future generations to meet their needs. social responsibility to meet the needs of stakeholders
Employment Engagement
refers to the degree to which employees are fully involved in their work and the strength of their commitment to their job and the company. Passionate about his or her work Committed to the company and its mission Works hard to contribute Measured with attitude or opinion surveys
Talent Management
refers to the systematic planned strategic effort by a company to use bundles of HRM practices—including acquiring and assessing employees, learning and development, performance management, and compensation—to attract, retain, develop, and motivate highly skilled employees and managers.
Concentration Strategies
strategy focusing on increasing market share, reducing costs, or creating and maintaining a market niche for products and services Require that the company maintain the current skills that exist in the organization Need for skill-based training and fair compensation
Competitive Challenges Influencing Human Resource Management
sustainability, globalization, technology
One Way Linkage in HRM and Strategic Management
the firm's strategic business planning function develops the strategic plan then informs the HRM function of the plan. Although one-way linkage does recognize the importance of HR in implementing the strategic plan, it precludes the company from considering HR issues while formulating the strategic plan . This level of integration often leads to strategic plans that the company cannot successfully implement
Human Resource Management
the policies, practices, and systems that influence employees' behavior, attitudes, and performance
skill based pay
based on the skills employees acquire and are capable of using Increases workforce flexibility Facilitates the decentralization of decision making to those who are most knowledgeable Contributes to a climate of learning and adaptability and give employees a broader view of organization functions
Skill-based outcomes
behavior skills - measured by observation, work sample, ratings - (ex: listening skills, coaching skills,)
Key Jobs
benchmark jobs that have relatively stable content and are common to many organizations so that market-pay survey data can be obtained.
Statistical Disparities
between the composition of some group within the company compared to some other relevant group
Adapting to Change
change refers to the adoption of a new idea or behavior by a company. Technological advances, changes in the workforce or government regulations, globalization, and new competitors are among the many factors that require companies to change. Inevitable Employees expected to take more responsibility for their own careers Challenge is how to build a committed, productive workforce
Motivational Approach to Job Design
characteristics that affect psychological meaning and motivational potential, and it views attitudinal variables (such as satisfaction) as the most important outcomes of job design. to job design has roots in organizational psychology and management literature and, in many ways, emerged as a reaction to mechanistic approaches to job design. It focuses on the job Job Characteristics Model: skill variety - a variety of skills to carry of task task identity - completing a while piece of work for beginning to end autonomy - way work will be carried out feedback - receive the work itself clear information about performance task significance - impact of the lives of other people
private agencies
charge a fee, which is paid either by the job seeker or by the employer. Charge the employer for referrals Don't have to be unemployed to use them Executive search firms (headhunters)
Keys to effectively utilizing labor markets
clear idea of current configuration of human resources know where the organization is going in the future, how the present configuration of human resources relates to the configuration that will be needed address discrepancies
Evidence-based HR
collecting and using data to show that human resource practices have a positive influence on the company's bottom line or key stakeholders
Outcome (fairness cat.)
communicated expectation regarding performance evaluations and standards
Cost Strategies
companies define the skills they require and invest in training employees in these skill areas
results
company payoff - measured by observations (ex. absenteeism ,accidents )
Reliability
consistency of a performance measurement; the degree to which a performance measure is free from random error
External Analysis
consists of examining the organization's operating environment to identify the strategic opportunities and threats. Examples of opportunities are customer markets that are not being served, technological advances that can aid the company, and labor pools that have not been tapped. Threats include potential labor shortages, new competitors entering the market, pending legislation that might adversely affect the company, and competitors' technological innovations.
Executive Branch
consists of the President of the United States and regulatory agencies the president oversees
Judicial Branch
consists of the federal court system, which is made up of three levels. The first level consists of the U.S. District Courts and quasi-judicial administrative agencies.
Team Training
coordinates the performance of individuals who work together to achieve a common goal
Labor Cost Components
cost per employee (wages, salaries, bonuses - direct payments) (insurance, social sec - indirect) Staffing level( number of employees)
Inclusion
creating environment in which employees share a sense of belonging/mutual respect
alternation ranking
deciding who Is the best employee and crossing that name off the list then looks at the worst and crosses that name off
Generalizability
degree to which the validity of a selection method established in one context extends to other contexts different situations different samples of people
extrinsic motivation
depends on rewards (such as pay and benefits) controlled by an external source
intrinsic motivation
depends on rewards that flow naturally from work itself
Behavioral Approach
designed to specifically define performance dimensions by developing behavioral anchors associated with different levels of performance
Incentive Effect
effect of pay plans to current employees
Non Exempt Employees
employees covered by the FLSA requirements for overtime pay - mostly hourly jobs
appraisal politics
evaluators purposefully distorting a rating to achieve personal or company goals
cause and effect diagrams
events or causes that result in undesirable outcomes are identified
Disparate Treatment
exists when individuals in similar situations are treated differently based upon race, color, religion, sex, national origin, age, or disability status. Whenever individuals are treated differently because of their race, sex, or the like, and there is an actual intent to treat them differently; the plaintiff must prove that there was a discriminatory motive—that is, that the employer intended to discriminate.
Offshoring
exporting jobs from developed to less developed countries
Performance feedback
feedback info
Behavior Modeling
feedback on how closely their skills match those demonstrated by model
Employee Wellness Programs
focus on trying to prevent health related problems
Perceptual- motor approach
focuses on human mental capabilities and limitations. The goal is to design jobs in a way that ensures they do not exceed people's mental capabilities and limitations.
Attribute Approach
focuses on the extent to which individuals have certain attributes believed desirable for the company's success
procedural justice
focuses specifically on the method used to determine the outcome percieved
Goals and Timetables
for achieving balance in the workforce concerning these characteristics (particularly where underutilization exists).
Procedural-development (fairness cat.)
give managers and employees opportunity to participate in development system. Ensures consistent standards when evaluating diff employees
interpersonal use (fairness cat.)
give timely complete feedback. Allow employees to challenge evaluation, provide feedback in an atmosphere of respect and courtesy
job rotation
gives employees a series of job assignments in various functional areas of the company or movement among jobs in a single functional area or department helps employees gain overall appreciation
Communities of practice
groups of employees who work together, learn from each other, and develop a common understanding of how to get work accomplished
Market Survey Data
has the greatest emphasis on external comparisons
Pareto Chart
highlights the most important cause of a problem. In a Pareto chart, causes are listed in decreasing order of importance, where importance is usually defined as the frequency with which that cause resulted in a problem.
Expatriate pay
housing, benefits) continue to be linked to the home country
competency model
identifies and provides descriptions of competencies that are common for an entire occupation, organization, job family, or a specific job. can help identify best employees to fill open positions can be used as foundation for development plan
Process-flow analysis
identifies each action and decision necessary to complete work, such as waiting on a customer or assembling a television set. Useful for identifying redundancy in processes that increase manufacturing or service time.
Opportunity to perform
influenced by both work environment and trainee motivation influence by the degree trainees take personal responsibility to seek out assignments that allow them to use new capabilities
control chart
involve collecting data at multiple points in time. By collecting data at different times, employees can identify what factors contribute to an outcome and when they tend to occur.
webcasting
involves classroom instructions that are provided online through live broadcasts
assessment
involves collecting information and providing feedback to employees about their behavior, communication style, or skills.
cross cultural preparation
involves educating employees (and their families) who are given an assignment in a foreign country.
Support Network
is a group of two or more trainees who agree to meet and discuss their progress in using learned capabilities on the job.
unconscious bias
is a judgment outside of our consciousness that affects decisions based on background, culture, and personal experience.
job specification
is a list of the knowledge, skills, abilities, and other characteristics (KSAOs) that an individual must have to perform the job.
job description
is a list of the tasks, duties, and responsibilities (TDRs) that a job entails
Comparable worth
is a public policy that advocates remedies for any undervaluation of women's jobs (also called pay equity).- no legal mandate
apprencticeship
is a work-study training method with both on-the-job training and classroom training.
action planning
is a written strategy that employees use to determine how they will achieve their short- and long-term career goals. Action plans may involve any one or a combination of development approaches such as enrolling in courses and seminars, getting additional assessment, obtaining new job experiences, or finding a mentor or coach and long-term development objectives
expatriate
is an employee sent by a company to manage operations in a different country
Compa-ratio
is an index of the correspondence between actual pay and intended pay.
Background Checks
is low-cost and useful Educational information not always valid Resume fraud is on the rise
Administrative Linkage in HRM Function and Strategic Management
is the lowest level of interaction. HRM function's attention is focused on day-to-day activities.
Strategic Choice
is the organization's strategy and describes the way the organization will attempt to fulfill its mission and achieve long-term goals.
Downsizing
is the planned elimination of large numbers of personnel, designed to enhance organizational effectiveness. Trend has slowed since 2008 Tends to fall short of meeting companies' financial and organizational objectives, and has negative effects on employee morale and productivity The HRM function must "surgically" reduce the workforce by cutting only the workers who are less valuable in their performance Early retirement programs usually result in rehiring Survivor morale issues
outputs
is the product of a work unit and is often an identifiable thing, such as a completed purchase order, an employment test, or a hamburger. However, an output can also be a service, such as the services provided by an airline or a housecleaning service
identifying and communicating job hazards
job hazard analysis technique - breaks jobs down into basic elements that are then rated for their potential for harm. Technic of operations review (TOR) - focuses on past accidents and their causes.
Nonkey Jobs
jobs that are unique to organizations and that cannot be directly valued or compared through the use of market surveys
Massive Open Online Course (MOOC)
large number of learners who have access - composd of interactive course work ( video lect, discussion, wikis, quizzes)
On the Job Training
learning through peer observations and trying to imitate
Self - Selection
looked at the job and concluded that there is enough fit between themselves and the job opening
misdirected effort
low ability, high motivation
Risk Aversion
makes outcome - oriented contracts less likely
Aspects of Employment Engagement
managers treat employees as well as human resource practices such as recruiting, selection, training and development, performance management, work design, and compensation.
Pay Policy Line
mathematical expression that describes the relationship between a job's pay and its job evaluation points
individual pay programs
may affect the nature and composition of an organization's workforce Linking pay to performance may attract retain more high performers
Validity
measure related to the performance on the job
Performance Appraisal
measuring performance
Merit Bonus
merit pay paid in the form of a bonus, instead of a salary increase
forced distribution
method also uses a ranking format, but employees are ranked in groups Employees ranked in predetermined categories Helps managers tailor development activities to employees based on their performance
paired comparison
method requires managers to compare every employee with every other employee in the work group, giving an employee a score of 1 every time he or she is considered the higher performer.
Functional Structure jobs
need to be narrow and highly specialized. Managers of divisional structures often need to be more experienced or high in cognitive ability relative to managers of functional structures
Leading indicators
objective measures that accurately predict future labor demand Useful when there is a long, stable history that can be used to reliably detect relationships among variables
Vertical Alignment
occurs when HR practices and processes are aimed at addressing the strategic needs of the business. done primarily through people
Disparate Impact
occurs when a facially neutral employment practice disproportionately excludes a protected group from employment opportunities.
Legislative Branch
of the federal government consists of the House of Representatives and the Senate. These bodies enact laws that govern many HR activities.
Whistle Blowing
often dissatisfied individuals who cannot bring about internal change and, out of a sense of commitment or frustration, take their concerns to external constituencies. ex: news outlets and media
Prosocial motivation
often used to explicitly capture the degree to which people are motivated to help other people
Ability to pay
outcome oriented contribute to higher compensation cost because of the risk premium
profit sharing
payments are based on a measure of organization performance (profits), and the payments do not become part of the base salary
recruiters realism
perhaps the most well-researched aspect of recruiting deals with level of this that recruiter incorporates into his message; realistic job preview
reasonable accomodation
places a special obligation on an employer to affirmatively do something to accommodate an individual's disability or religion. Reasonable accommodation is making facilities readily accessible to and usable by individuals with disabilities
acts of intentional discrimination
plaintiff tries to show that that the statistical disparity is a function of the larger culture
Special Case of Affirmative Action Planning
plan for subgroups within the labor force Affirmative action plans forecast and monitor the proportion of various protected group members, such as women and minorities
Formal Training
planned effort by a company to facilitate employee's learning of job related competencies, knowledge, skills and behaviors
Training
planned effort by a company to facilitate employee's learning of job related competencies, knowledge, skills and behaviors
Employment at will Policies
policies stating that either an employer or an employee can terminate the employment relationship at any time, regardless of cause
Due-Process Policies
policies that formally lay out the steps an employee may take to appeal the employer's decision to terminate that employee
Cross-training
practice each others skills so team members are prepared to take each others place
Organizational analysis
process for determining the business appropriateness of training examples below: Support of managers and peers - critical. Key factors for success include positive attitudes and supportive Company strategy - gain competitive advantage ,1. allocates enough to training 2. receive training on relevant topics, right amount of training Training resources - determined budget, time and resource
Task Analysis
process for identifying the tasks, knowledge, skills, and behaviors that need to be emphasized in training
goal setting
process of developing short/ long development objectives
career patterns
provide opportunities for employees to Determine their interests, skills strengths and weaknesses Seek development experiences
Inputs in work flow analysis
raw materials, equipment and human skills needed to perform task
Delayering
reducing the number of job levels to achieve more flexibility in job assignments and in assigning merit increases.
stretch assignments
refer to assignments in which there is a mismatch between employees skills and past experiences on the job
Avatars
refer to computer depictions of humans that are being used as imaginary coaches, co-workers, and customers in simulations
Reasoning Ability
refers to a person's capacity to invent solutions to many diverse problems
Verbal Comprehension
refers to a person's capacity to understand and use written and spoken language
Participation
refers to actually testifying in an investigation, hearing, or court proceeding regarding an illegal employment act.
job enlargement
refers to adding challenges or new responsibilities to employees' current jobs (special project, switching roles, research)
readiness for training
refers to employee characteristics that provide employees with the desire, energy, and focus necessary to learn from training
Opposition
refers to expressing to someone through proper channels that you believe that an illegal employment act has taken place or is taking place
Diversity Training
refers to learning efforts that are designed to change employee attitudes about diversity and or/develop skills needed to work with a diverse workforce.
Lean production
refers to processes developed in Japan, but then adopted worldwide, emphasizing manufacturing goods with a minimum amount of time, materials, money—and most important—people.
teleconferencing
refers to synchronous exchange of audio, video, and/or text between two or more individuals or groups at two or more locations
Reliability
refers to the consistency of a performance measure.
E-learning
refers to the delivery of training on the web
Equal Employment Opportunity Commission (EEOC)
refers to the government's attempt to ensure that all individuals have an equal chance for employment, regardless of race, color, religion, sex, or national origin (see Table 3.1 in the text for a summary of EEO laws). Enforced through constitutional amendments, legislation, executive orders, and court decisions
Self Management skills
refers to the process of enhancing company performance by designing and implementing tools, processes, systems, structures, and cultures to improve the creation, sharing, and use of knowledge. -Set goals for using skills or behaviors on the job -Identify conditions under which they might fail to use them -Identify the positive and negative consequences of using them -Monitor their use of them
Onboarding
refers to the process of helping new hires adjust to social and performance aspects of their job by : Establish relationships to increase satisfaction Clarify goals and expectations to improve performance provide feedback, coaching, and follow-up activities to reduce turnover
Succession Planning
refers to the process of identifying and tracking high-potential employees who are capable of moving into different positions in the company resulting from planned or unplanned job openings due to turnover, promotion, or business growth.
organization structure
refers to the stable and formal network of vertical and horizontal interconnections among jobs that constitute the organization. Need to understand how jobs at different levels relate
equipment
refers to the technology and machinery necessary to transform the raw materials into the product
self-assessment
refers to the use of information by employees to determine their career interests, values, aptitudes, and behavioral tendencies.
Acceptability
refers to whether the people who use a performance measure accept it.
self-efficacy
reflects the employee belief that they can learn content of training programs
Drug Use Test
reliable and valid
Continous Learning
requires employees to understand the entire work process and expects them to acquire and apply new skills and share what they have learned with other employees.
cross cultural preparation repatriation phase
return back to the parent company after foreign assignment Self-managed - maintain contact with parent company so they are still in the loop Provide company newsletters and local newspapers to help stay update while gone Adjust to lower standard of living - from luxuries of foreign countries - salaries may need to be adjusted
Competencies
sets of skills, knowledge, abilities, and personal characteristics that enable employees to successfully perform their jobs.
Strategic Purpose of Performance Management
should link employee activities with the organization's goals Define the results, behaviors, and employee characteristics that are necessary for carrying out those strategies, and then Develop measurement and feedback systems
Transitional Maxtrix
show the proportion (or number) of employees in different job categories at different times
scattergrams
show the relationship between two variables, events, or different pieces of data and help employees determine whether the relationship between two variables or events is positive, negative, or zero.
human skills
skills and efforts necessary to perform the tasks
Knowledge Management Systems
systems to improve creation, sharing and use of knowledge
Physical Ability Test
tests of physical abilities may be relevant not only to predicting performance but to predicting occupational injuries and disabilities as well for many jobs that require physical or psychomotor abilities.
work processes
the activities that members of a work unit engage in to produce a given output. - How is the output generated (operating procedures)? - Team-based job design
Office of Federal Contract Compliance Programs
the agency responsible for enforcing the executive orders that cover companies doing business with the federal government
Range Spread
the distance between the minimum and maximum amounts in a pay grade larger at higher levels
Departmentalization
the dividing of organizational functions into separate units
sorting effect
the effect a pay plan has on the composition of the current workforce (the types of employees attracted and retained
specifity
the extent to which a performance measure tells employees what is expected of them and how they can meet these expectations Relevant to both strategic and developmental purposes Must measure what an employee must do to achieve company's goals Must point out employee's performance problems
Outcome fairness
the judgement that people make with respect to the outcomes received relative to the outcomes received by other people with whom they identify
role-play in evaluating employees
the participate takes the role of manager or other employees
downsizing
the planned elimination of large numbers of personnel designed to enhance organizational effectiveness.
Work Flow Design
the process of analyzing the tasks necessary for the production of a product or service, prior to allocating and assigning these tasks to a particular job category or person important in understanding how to bundle tasks into discrete jobs
Managing Diversity
the process of creating an environment that allows all employees to contribute to organizational goals and experience personal growth.
Workforce Utilization Review
the proportion of workers in these subgroups can be compared with the proportion that each subgroup represents in the relevant labor market
Instructor led classroom
trainer lecture a group
Hands on methods
training methods that actively involve the trainee in learning (simulations, case studies, and the on the job)
Simulation
training represents a real-life situation, with trainees' decisions resulting in outcomes that mirror what would happen if the trainee were on the job
Instructional Design Process STEP 4
transfer of training refers to on-the-job use of knowledge, skills, and behaviors learned in training and is influenced by the climate for transfer, manager support, peer support, opportunity to use learned capabilities, technology support, and self-management. Manager support - degree of which managers emphazise the importance of attending training programs and stress the application of training content
Liftout
trying to recruit and whole team of people
Wrongful Discharge Suit
typically attempts to establish that the discharge either (1) violated an implied contract or covenant (i.e., the employer acted unfairly) or (2) violated public policy (i.e., the employee was terminated because he or she refused to do something illegal, unethical, or unsafe).
OSHA Inspections
unannounced conducted by specially trained agents The compliance officer reviews the employer's records of deaths, injuries, and illnesses. The officer, typically accompanied by a representative of the employer (and perhaps by a representative of the employees), conducts a "walkaround" tour of the employer's premises. Employee interviews may take place during the tour. In a closing conference, the compliance officer discusses the findings with the employer, noting any violations.
Employment Stock Ownership Plan (ESOP)
under which employers give employees stock in the company, are the most common form of employee ownership.
Sources of Job Dissatisfaction
unsafe working conditions personal dispositions task and roles
Balanced Scorecard
use of mix pay programs
Audiovisual training
use of overhead, slides, an videos
negative affectivity
used to describe a dispositional dimension that reflects pervasive individual differences in satisfaction with any and all aspects of life.
pay plans
used to energize, direct, sustain and control the behaviors of current employees
Strategic Implementation Performance Managment
used to ensure employee activities and outcomes are congruent with the organizations objectives
Balanced Scorecard
used to measure performance
standard deviation rule
uses actual probability distributions to determine adverse impact.
Outsourcing Services
uses an outside organization for a broad set of services. Jobs that are proprietary or require tight security should not be outsourced.
Recruiter Traits
warmth and imformativness
Measuring and Monitoring Job Satisfaction
worker self reports job descriptive index - assess satisfaction with pay pay satisfaction questionnaire - more specific deminsions ( pay levels, structures, raises) pulse surveys - short surveys that out every day or week
Title VII of the Civil Rights Act of 1964 protects
you. states that employers cannot retaliate against employees for either "opposing" a perceived illegal employment practice or "participating in a proceeding" related to an alleged illegal employment practice
Reverse Mentoring
younger employees mentor more senior employees
Strategic Implantation requires that
"An organization has a variety of structural forms and organizational processes to choose from when implementing a given strategy"
cross culture preparation On site phases
- continue training to the host country and customs
3 parts of performance management
1. defining performance 2. measuring performance 3. performance feedback
7 classes for test in Physical Ability Test
1. muscular tension 2. muscular power 3. muscular endurance 4. cardiovascular endurance 5. flexibility 6. balance 7. coordination
Plaintiffs attempt to show three things in class action pattern and practice lawsuits
1. statistic disparities 2. acts of intentional discrimination 3. unconscious bias
Forcasting
Ascertain the supply of and demand for various types of human resources Predict areas within the organization where there will be future labor shortages or surpluses Can use statistical or judgmental methods
Diversity in Recruitment and Hiring
Ask search firms to identify wider arrays of candidates. Enhance the interviewing, selection, and hiring skills of managers. Expand college recruitment at historically minority colleges.
Instructional Design Process STEP 3
Creating a Learning Environment Need to know why they should learn. Meaningful training content. Opportunities for practice. Feedback. Observe, experience, and interact with training content, other learners, and instructor. Good program coordination and administration. Commit training content to memory.
Intangible Assets in Customer Capital
Customer relationships Brands Customer loyalty Distribution channels
Who participates in pay decisions
Employee participation in pay decisions tends to be rare. Line managers should be involved
Transfers, Promotions and Downward Moves
Employees are more willing to accept promotions than lateral or downward moves. May involve relocation within the United States or to another country; can provoke anxiety.
Managers role in effective performance feedback process
Feedback Should Be Given Frequently, Not Once a Year Create the Right Context for the Discussion. Ask the Employee to Rate His or Her Performance before the Session. Have Ongoing, Collaborative Performance Conversations. Recognize Effective Performance through Praise. Focus on Solving Problems. Focus Feedback on Behavior or Results, Not on the Person. Minimize Criticism. Agree to Specific Goals and Set a Date to Review Progress
The Point Factor System
First, a priori weights can be assigned.- factors are weighted using expert judgements about the importance of each comp factor. Second, weights can be derived empirically based on how important each factor seems in determining pay in the labor market.
Demonstrating Social Responsibility
Helps boost a company's image with customers, gain access to new markets, and help attract and retain talented employees. Companies try to meet shareholder and general public demands that they be more socially, ethically and environmentally responsible. Helping to protect the planet can also save money. Sustainability is an important part of many companies' business strategy.
Executive Pay
Influence the organization's performance Set the culture of the organization Long-term compensation is usually stock plans The ratio of top-executive pay to that of an average worker is 280. Trust gap
Wrongful discharge actions
Initiating punitive actions short of termination, in an effort to get the employee to quit on his or her own Paying off the employee in excess severance pay in return for waiving the right to sue for wrongful dismissal
Strategic Role of HRM
Lead efforts focused on talent management and performance management Take the lead in helping companies attract, develop, and retain talent in order to create global workforces Use and analyze data to make a business case for ideas and problem solutions
Informal Learning
Learning that is learner initiated, involves action and doing, is motivated by an intent to develop, and does not occur in a formal learning setting
Employee participation in decision making
Linked to higher pay satisfaction and job satisfaction Delegation of decision making can be costly
Employees as a resource
Need to evaluate in terms of cost and the returns they generate - how they attract, retain, and motivate a high-quality workforce. Having higher labor cost than your competition isn't a bad thing if the employees produce products more efficiently and better quality
Self
Not often used as the sole source of performance information, but can still be valuable Tendency toward inflated assessments
Problems with Comparative approach
Often not linked to strategic goals Validity and reliability depend on the raters themselves Individuals are completely unaware of what they must do differently to improve their ranking Employees and managers are less likely to accept evaluations
unconscious bias
Plaintiff usually tries to make the case that the promotion and/or pay procedures leave too much discretion to managers, providing the avenue through which their unconscious biases can play a part.
Employee's View on Pay
Policies regarding wages, salaries & other earnings affect their overall income and standard of living. Both level of pay & fairness compared with others'pay are important.
Labor Force and Employment Characteristics
Population is the most important factor in determining the size and composition of the labor force Growth is slowing Labor force is aging Diversity is increasing Service sector is growing Education is important to meet job requirements Shortage of qualified candidates
Two Recognized Job Analysis Methods
Position Analysis Questionnaire (PAQ) The Occupational Information Network (O*NET
Downsizing Factors
Reduce labor cost Technological changes reduce need for labor Organizations change business location for economic reasons Has negative effects on long-term organizational effectiveness Leads to a loss of talent, disrupts the social networks needed to promote creativity and flexibility Lets go of irreplaceable assets Motivation levels drop off
Technology in HRM
Reducing HRM role in administrative tasks, maintaining records, and providing self-service to employees Shift to self-service gives employees access to many HR issues HR managers have more time to work on employee issues
Learning Management System (LMS)
Refers to a technology platform that can be used to automate the administration, development, delivery of all of a company's training programs.
Sources of Job Analysis Information
Subject-matter experts Job incumbent Supervisors Social networks
Six Sigma Process
System of measuring, analyzing, improving, and controlling processes once they meet quality standards.
Intangible Assets in Human Capital
Tacit knowledge Education Work-related know-how Work-related competence
Action Learning
Teams or work groups get an actual problem, work on solving it and commit to an action plan, and are accountable for carrying out the plan.
bench strength
The business strategy of having a pool of talented employees who are ready when needed to step into a new position within the organization.
Temporary Works and Independent Contractors
The most widespread means of eliminating a labor shortage
Three Types of Assets
Three types of assets Financial assets (cash and securities) Physical assets (property, plant, equipment) Intangible assets intangible assets
Competing through Globalization
U.S. businesses must : Develop global markets Use their practices to improve global competitiveness Better prepare employees for global assignments
Nine Competencies Developed by SHRM 2. Business Accum
Understand business functions and metrics within the organization and industry
electronic recruiting
Use the organization's web page to solicit applications LinkedIn, Craigslist, Monster.com Social networking
Coaching
a peer or manager who works with an employee to motivate the employee, help him or her develop skills, and provide reinforcement and feedback
Agent
a person (manager) who is expected to act on behalf of a principle (owner)
Principle
a person (owner) who seeks to direct another person behavior
lead-the-market strategy
a policy of paying higher than current market wages faster than competition
13th Amendment
abolished slavery
Termination should come
at the end of a systematic discipline program
Protean Career
based on self-direction with the goal of psychological success in one's work.
Benchmarking
comparing an organization's practices against those of the competition
comparative approach
comparing individual performance to others
Four Steps in Onboarding
compliance - understand company policies clarification - understand job performance expectations culture - understand company history connection - understand and develop working and interpersonal relationship
Total Quality Management
comprehensive approach dedicated to continuous quality improvement, training, and customer satisfaction
Quantitive Ability
concerns the speed and accuracy with which one can solve arithmetic problems of all kinds
raw materials
consist of the materials that will be converted into the work unit's product
Instructional Design Process Steps 1ST STEP
determine if training is necessary. pressure points to determine if training is necessary Performance problems New technology Internal or external customer requests for training Job redesign New legislation Changes in customer preferences
action steps
develop a list attaining their goals to reduce underutilization.
Adventure Learning
develops teamwork and leadership skills using structures outdoor activities
contribution margins
difference in what you charge for your products and the variable cost of production
repurposing
directly translating instructor-led training online
Psychological Withdrawal from job
disengage low level of job envolvement low level of organization commitment
unjust dismissal
dismissal for reasons other than those the employer claims
Types of Discrimination
disparate treatment and disparate impact
histograms
display distributions of quantitative variables in columns where the x-axis displays the units of measurement for a variable and the y-axis displays the frequency.
Divisional Structures
divisional departmentalization with low levels of centralization. units almost act as separate organizations. More flexible and innovative Not efficient
return on investments
economic value of training - measure by identification and comparison of cost benefits programs (ex. dollars)
noncompete clauses
employment contracts, cant leave one company to work in the same industry
Functional structure
employs a functional departmentalization with relatively high levels of centralization. Very efficient with little redundancy
Defining Performance
ensure employee activities are congruent with goals
1938 Fair Labor Standards Act
establishes a minimum wage Requires paying overtime after 40 hours in a week The sharing economy - contractors
Instructional Design Process STEP 6
evaluating training programs
Integrative Linkage in HRM and Strategic Management
have their HRM functions built right into the strategy formulation and implementation processes
Solid Performers
high ability and high motivation
underutilizers
high ability, low motivation
simple ranking
highest performer to the poorest performer
Compentency based pay
if you want employees to learn more skills and become more flexible in the jobs they perform, you should pay them to do it
Strategic Management Process
include mission, goals, external and internal analysis and strategic choice
individual incentives
individual performance Payments not rolled into base pay. (earned& re-earned) Performance is usually measured as physical output (number items produced) rather than by subjective ratings.
strategic congruence
is the extent to which a performance management system elicits job performance that is congruent with the organization's strategy, goals, and culture. Emphasizes the need for the performance management system to guide employees in contributing to the organization's success Must be flexible to adapt to change Critical success factors (CSFs)
Validity (Performance Measure)
is the extent to which a performance measure assesses all the relevant—and only the relevant—aspects of performance. Must not be deficient or contaminated It is deficient if it does not measure all aspects of performance It is contaminated if it evaluates irrelevant aspects of performance or aspects that are not job related Concerned with maximizing the overlap between actual job performance and the measure of job performance
Tacit Knowledge
knowledge that is based on personal experience that is difficult to codify
Affective Outcomes
motivation, reaction to program, attitudes measured by interviews, surveys focus groups (ex. listening skills, coaching skills)
360-Degree Appraisal
multiple raters (boss, peers, subordinates, customers) evaluating managers
formal education
programs include off-site and on-site programs designed specifically for the company's employees, short courses offered by consultants or universities, executive MBA programs, and university programs in which participants live at the university while taking classes.
Civil Right Act of 1991
prohibits discrimination
calibration meetings
provide a way to discuss employee's performance with the goal of ensuring that similar standards are applied to their evaluations
enhancing recruiter impact
provide timely feedback done by teams
reality check
refers to the information employees receive about how the company evaluates their skills and knowledge and where they fit into the company's plans (potential promotion opportunities, lateral moves).
interactional justice
refers to the nature of how the outcomes were implemented (how a person is discharged)
Outsourcing
refers to the practice of having another company (a vendor, third party, or consultant) provide services.
job analysis
refers to the process of getting detailed information about jobs. Work redesign Human resource planning Selection Training and development Performance appraisal Career planning Job evaluation
SWOT Anaylisis
strengths, weaknesses, opportunities, threats combined result of internal and external anaylisis
Definition of sexual harassment
submission to such conduct is made either explicitly or implicitly a term of condition of an individuals employment submission to or rejection of such conduct by and individual is used as the basis for employment decisions affecting such individual such conduct has the purpose of effect of unreasonably interfering with an individuals work performance and creating intimidating hostile or offensive working environments.
Voluntary Turnover
support former employees transition into alternative employment preventing valued employees from leaving
test-retest reliability
the stability of measurements across time
Incentive Intensity
the strength of the relationship between performance and pay (i.e., how strongly we differentiate in performance and pay). Strengthens motivation but also unintended consequences (undermining ex: teachers cheating for better scores for increased pay)
non-traditional employment
the use of independent contractors, freelancers, on-call workers, temporary workers, and contract company workers. Companies that rely primarily on nontraditional employment to meet service and product demands are competing in the gig economy
tradition
tradition or custom outcome oriented contracts will make such contracts more or less likely
games and case studies
trainees study and discuss to analyze and make decisions.
Reference Checks
weak predictors of future job success
Mixed-Standard Scales
were developed to get around some of the problems with graphic rating scales.
Function of values
what a person desires to attain
hostile work environment
when someone's behavior in the workplace creates an environment that makes it difficult for someone of a particular sex to work. a form of sexual harassment filings by men have increased
Most Common Outsourced Activities
- Benefits administration (e.g., flexible spending accounts, health plan eligibility status) - Relocation - Payroll
Situational Interviews
- Confronts applicants on specific issues, questions, or problems likely to arise on the job -experienced based questions future oriented questions
Promoting Safety Internationally
- Ensure safety - Cultural differences - Enforcement and political climates vary
Employee Support in Diversity
- form resource groups with common intreset -celebrate cultural traditions holidays - make work. life balance initiatives available to all employees.
gainsharing
- offer a means of sharing productivity gains with employees. Measures group or plant performance Payouts are not deferred - distributed more frequently More motivating to employees
Productivity Measurement and Evaluation System (ProMES)
- to motivate employees to improve team or company-level productivity.
Six Determinate of Procedural Justice
1. Consistency. The procedures are applied consistently across time and other persons. 2.Bias suppression. The procedures are applied by a person who has no vested interest in the outcome and no prior prejudices regarding the individual. 3. Information accuracy. The procedure is based on information that is perceived to be true. 4. Correctability. The procedure has built-in safeguards that allow one to appeal mistakes or bad decisions. 5.Representativeness. The procedure is informed by the concerns of all groups or stakeholders (co-workers, customers, owners) affected by the decision, including the individual being dismissed. 6.Ethicality. The procedure is consistent with prevailing moral standards as they pertain to issues like invasion of privacy or deception.
Four Determinants of Interactional Justice
1. Explanation - justify decision 2. Social Sensitivity - treat with dignity 3. Consideration - listen to concerns 4. Empathy - identify with feelings
Process of Developing Succession Plan
1. Identify what positions are included in the plan. 2. Identify the employees who are included in the plan. 3.Develop standards to evaluate positions (e.g., competencies, desired experiences, desired knowledge, developmental value). 4. Determine how employee potential will be measured (e.g., current performance and potential performance). 5.Develop the succession planning review. 6. Link the succession planning system with other human resource systems, including training and development, compensation, performance management, and staffing systems. 7. Determine what feedback is provided to employees. 8. Measure the effectiveness of the succession plan.
5 Core Values of Total Quality Management
1. Methods and processes are designed to meet internal and external customers' needs. 2.Every employee receives training in quality. 3. Promote cooperation with vendors, suppliers and customers. 4. Managers measure progress with feedback based on data. 5. Quality is designed into a product or service so that errors are prevented rather than being detected and corrected.
Process of Performance Management
1. Understand and identify important performance outcomes or results --Align goals and behaviors to organization's strategies and goals 2. Understand the process (or how) to achieve the goals established in the first step --Identifying measurable goals, behaviors, and activities that will help employees achieve the performance results --Make these part of the employees' job descriptions 3. Provide employees with training, necessary resources and tools, and frequent feedback --Focus on accomplishments as well as issues and challenges influencing performance 4. manager and employee discuss and compare the target performance goals and supporting behaviors with actual results --annual or biannual performance review 5.Identify what the employee can do to capitalize on performance strengths and address weaknesses 6.Provide consequences for achieving (or failing to achieve) performance outcomes
Alternative Dispute Steps
1. open door policy - two people try to resolve issue if not solves move to step 2 2. peer review - panel of composed representatives that hear the case and try settle if not agreed upon step 3 3. mediation - neutral 3rd party suggest a settlement if not solved step 4 4. arbitration - professional arbitrator makes decision
validity generalization
1. proivdes evidence from previous criterion-related validity studies 2. provides evidence from job analysis to document that the job it is try to fill is similar in all major respects to the job validated elsewhere 3. if company can show that it uses test that is the same as or similar to that used in the validated setting then on can generalize the validity from the first context to the new.
Ricci v. DeStefano
20 New Haven firefighters (19 white, 1 Hispanic) sued for discrimination regarding promotions. Test results thrown out because no blacks passed. Frank Ricci (dyslexic) studied 8-13 hours a day, friend recording books for him. Courts said tests were "content-validated" and can't rely on statistical disparity alone to justify ignoring test results.
utilization analysis
A comparison of the race, sex, and ethnic composition of an employer's workforce with that of the available labor supply.
Concurrent Validation
A criterion-related validity study in which a test is administered to all the people currently in a job and then incumbents' scores are correlated with existing measures of their performance on the job.
Sabbaticals
A leave of absence from an organization for personal reflection renew or develop skills (write a book, finish school) 4-10 weeks
Job Satisfaction
A pleasurable feeling that results from the perception that one's job fulfills or allows for the fulfillment of one's important job values.
Affirmative Action
A policy designed to redress past discrimination against women and minority groups through measures to improve their economic and educational opportunities imposing quota programs
Person Analysis
A process for determining whether employees need training, who needs training, and whether employees are ready for training
Reinforcement Theory
A response followed by a reward is more likely to recur in the future High employee performance followed by a monetary reward will make future high performance more likely
In -basket
A simulation of the administrative tasks of a manager's job.
Content Validation
A test-validation strategy performed by demonstrating that the items, questions, or problems posed by a test are a representative sample of the kinds of situations or problems that occur on the job. best used in small-sample settings
Pregnancy Discrimination Act
Act that prohibits discrimination on the basis of pregnancy, childbirth, or related conditions.
Evaluation of Quality Approach
Adopts a systems-oriented focus Advocates evaluation of personal traits (such as cooperation), which are difficult to relate to job performance unless the company has been structured into work teams
legality
All selection methods should adhere to existing laws and legal precedents.
Employee Satisfaction Surveys
Allow company to monitor trend over time Provide a means of empirically assessing the impact of changes in policy or personnel Allow company to compare itself with others in the same industry along these dimensions Allow company to check for differences between units and benchmark "best practices" that might be generalized across units Tool for uncovering systematic concerns that are driving retention problems
Job evaluation
An administrative procedure for measuring the relative internal worth of the organization's jobs.
Religion and Accomodation
An employee must demonstrate that he or she has a legitimate religious belief and provided the employer with notice of the need to accommodate the religious practice, and that adverse consequences occurred due to the employer's failure to accommodate.
public employment agency
An organization that helps people find jobs without charging them for the service. state employment office - primarily serves the blue collar market
Internal recruitment Advantages
Applicants are well known to the firm and relatively knowledgeable about the job Cheaper and faster to fill vacancies internally Inside hires often outperform outsiders
Nine Competencies Developed by SHRM 1 . HR Technical Expertise and Practice
Apply the principles of HRM to contribute to the success of the business
Job Programmability
As jobs become less routine, outcome- oriented contracts become more likely because monitoring becomes more difficult.
The Occupational Safety and Health Act (OSHA)
Authorizes federal government to establish and enforce occupational safety and health standards for all places of employment engaging in interstate commerce. Employee rights under OSHA -General Duty Clause
Early Retirement Programs and Buyout Plans
Baby Boomers delaying retirement Employers concerned about losing the experience, implicit knowledge of older workers Older workers cost more Older workers block the advancement of younger workers Voluntary attrition through early retirement incentive programs
Successfully manage a diverse work force
Behaviors that isolate or intimidate minority group member improve. Employees gain an appreciation of cultural differences among themselves
Behavioral Anchored Rating Scale (BARS)
Can increase interrater reliability Can bias information recall
Evaluation of Behavior Approach
Can link the company's strategy to the specific behavior necessary for implementing that strategy Provides specific guidance and feedback for employees about the performance expected of them Acceptability and reliability are high Weaknesses: Behaviors and measures must be continually monitored and revised Assumes that there is "one best way" to do the job and that the behaviors that constitute this best way can be identified
Best Practices for Pay Strategy
Choosing a pay level that balances the ability to compete in the product market and in the labor market Paying for performance to obtain positive incentive and sorting effects Paying attention to both distributive (e.g., equity theory) and procedural justice issues Complying with regulatory requirements
Blended Learning
Combines online learning, face-to-face instruction, and other methods for distributing learning content and instruction
Performance Support Systems
Computer applications that can provide (as requested) skills training, information access, and expert advice.
Directional Strategies
Concentration Internal Growth Mergers and Acquisitions Downsizings
Fair Treatment
Conduct extensive diversity training. Implement an alternative dispute resolution process. Include women and minorities on all human resources committees throughout the company.
Lilly Ledbetter Fair Pay Act
Congress passed the act specifying that an "illegal act" occurs when (1) a discriminatory compensation decision is adopted; (2) an employee becomes subject to the decision; or (3) an employee is affected by it application, including each time compensation is paid.
Competing through Technology
Consider applications of social networking, artificial intelligence, and robotics Use HRIS, Mobile devices, cloud computing, and HR dashboards Consider high-performance work systems and virtual teams
Intangible Assets in Social Capital
Corporate culture Management philosophy Management practices Informal networking systems Coaching/mentoring relationships
14th amendment
Declares that all persons born in the U.S. are citizens and are guaranteed equal protection of the laws
Disparate Treatment Case
Defendant's Rebuttal: Must show that the employment practice is a "business necessity." - bona fide Plaintiff's Rebuttal: Argue that other employment practices could sufficiently meet the employer's goal without adverse impact
Determining Labor Demand
Demand forecasts are developed around specific job categories or skill areas relevant to the organization's current and future state May use statistical models
Enhancing Firm Competitiveness
Develop a human capital pool that gives the company the unique ability to adapt to an ever-changing environment.
Nine Competencies Developed by SHRM 7. Organizational Leadership and Navigation
Direct initiatives and processes within the organization and gain buy-in from stakeholders
Nine Competencies Developed by SHRM 6. Communications
Effectively exchange and create a free flow of information with and among various stakeholders at all levels of the organization to produce meaningful outcomes
Quality Approach
Emphasize managers and employees working together to solve performance problems.
Expectancy Theory
Emphasizes expected rewards Focuses on the effects of incentives The main influence of compensation is on instrumentality: the perceived link between behaviors and pay. Motivations is a function of valence, instrumentality and expectancy
advantages of profit sharing
Employees think more like owners, taking a broad view of what needs to be done to make the organization more effective Labor costs are automatically reduced during difficult economic times, and wealth is shared during good times
Efficiency Wage Theory
Employees who are paid more than they would be paid elsewhere will wish to retain their good jobs. Under what circumstances do the benefits of higher pay outweigh the higher costs? According to efficiency wage theory, one circumstance is when organizations have technologies or structures that depend on highly skilled employees. Or difficulty observing and monitoring employees performance. Above market pay rate may help ensure max effort
Instructional Design Process STEP 2
Ensure employees readiness for training
Graphic Rating Scales
Evaluate a list of traits on a five-point scale Can be discrete scale or continuous scale
Attribute Approach Measure of performance
Evaluating the attribute approach - Easy to develop and generalizable Problems: Usually little congruence between the techniques and the company's strategy Usually have vague performance standards that are open to different interpretations by different raters
Biological Approach (ergonomics)
Examines the interface between individuals' physiological characteristics and the physical work environment Applied to redesigning equipment for jobs that are physically demanding Provides a climate that values safety and health
Competing Through Globalization Entering International Markets
Exporting products overseas Building manufacturing facilities or service centers in other countries Entering into alliances with foreign companies Engaging in e-commerce
Big Five Dimension of Personality Inventories
Extroversion - Sociable, gregarious, assertive, talkative, expressive Adjustment - emotionally stable, non depressed, secure, content agreeablemess - courteous, trusting, good natured, tolerant, cooperative , forgiving conscientiousness - dependable , organized, perserving, thorough achievement orientied openness to experience - curious, imaginative, artistically sensitive, broad minded, playful
Goal Setting and Strategic Planning
Focus attention on the problem and provide a benchmark for determining the relative success of any programs aimed at redressing a pending labor shortage or surplus Analyze labor supply and demand and include a figure for what should happen with the job category or skill area and a timetable
Title VII of the Civil Rights Act of 1964
Forbids discrimination on the basis of sex, race, color, religion, or national origin in all areas of the employment relationship
Talent Identification and Development in diversity
Form a partnership with internship programs that target minority students for management careers. Establish a mentoring process. Refine the company's global succession planning system to improve identification of talent. Improve the selection and development of managers and leaders to help ensure that they are capable of maximizing team performance. Ensure that all employees, especially women and minorities, have access to management development and leadership programs.
indpendent contractors
Freelancers, not part of an agency Agree to do specific tasks for specific time periods as part of a written contract between the worker and the employer
Advantages of Temp workers
Frees the firm from administrative tasks and financial burdens associated with being the "employer of record" Agencies may test employees so the company doesn't have too Agencies may train employees so the company doesn't have too The temporary person brings an objective perspective to the organization's problems and procedures
Altering Pay and Hours
Garner more hours from current employees Cut salaries Reduce contributions to 401(k) plans Reduce number of hours of all workers
Emphasis of Empowerment and Continuous Learning
Give employees responsibility and authority Hold them accountable Employees share in the rewards and losses
Reconstruction Civil Rights Acts of 1866 and 1871
Grants all citizens the right to make, perform, modify, and terminate contracts and enjoy all benefits, terms, and conditions of the contractual relationship
Pay grades
Grouping jobs into pay classes Each job within a grade has the same rate range Permits greater flexibility in moving employees from job to job
H2 -A Visas + H1-B Visas
H2-A - agricultural visas H2-B - higher skilled jobs - current limit set by the gov is 85,000 a year designed to protect american jobs
Direct Reports as source of information
Have best opportunity to evaluate how manager treats employees
peers as a source of performance information
Have expert knowledge of job requirements Often have the most opportunity to observe the employee Often in the best position to praise and recognize each other's performance on a daily basis in day-to-day activities Peers are not expected to provide feedback
Strategy Implantation Pay Structure, Incentives and Benefits
High pay and/or benefits relative to competitors can help company attract and retain high-quality employees, but might have a negative impact on overall labor costs. Tying pay to performance can elicit specific activities and levels of performance from employees.
Mechanistic Approach to Job Design
Identify the simplest way to structure work that maximizes efficiency
Reinforcing Safe Practices
Implementing a safety incentive program to reward workers for their support of and commitment to safety goals. Start by focusing on monthly or quarterly goals. Encourage suggestions for improving safety.
Developmental Purpose of Performance Managment
Improve the performance of employees Includes deficiencies and the causes of deficiencies Helps good performers get training and opportunities GPS system
HR practices that enhance labor productivity
Improving the design of work and the use of technology Upskilling employees through training Managing performance and compensation to incentivize and motivate workers to work smarter and harder Raising pay and focus on learning
Relationships with External Stakeholders in diverisity
Increase marketing to diverse communities. Provide customer service in different languages. Broaden the company's base of suppliers and vendors to include businesses owned by minorities and women. Provide scholarships and educational and neighborhood grants to diverse communities and their members.
Outcomes of Americans with Disabilities Act
Increased litigation - avg 26,000 complaints filed each year Many cases being filed are not based on the rights that Congress intended to protect - filed on firings instead of hiring Does not appear to have had its anticipated impact on the employment of Americans with disabilities - only 17.7 percent of people with disabilities are employed
Determing Labor Supply
Internal labor supply analyzes how many people are currently in various job categories within the company
Experiential Programs
Involve gaining conceptual knowledge and theory; taking part in a behavioral simulation or activity; analyzing the activity; and connecting the theory and activity with on-the-job or real-life situations.
Motivation to learn
Is trainees' desire to learn the content of training programs
Criticisms of Merit Pay Programs
It is unfair to rate individual performance because "apparent differences between people arise almost entirely from the system that they work in, not from the people themselves." The individual focus of merit pay discourages teamwork. If the performance measure is not perceived as being fair and accurate, the entire merit pay program can break down. Merit pay does not really exist.
Temporary Assignment
Job tryouts such as employees taking on a position to help them determine if they are interested in working in a new role.
Dynamic Elements of Job Analysis
Jobs change and evolve over time The job analysis process must also detect changes in the nature of jobs
Explicit Knowledge
Knowledge that is well documented and easily transferable to other persons (ex. Checklist, processes, definition, flowchart)
Societal trends and events affect employers through
Labor markets and Consumer Markets
Manager Accountability on Diversity
Link managers' compensation to their success in meeting diversity goals and creating openness and inclusion in the workplace. Use employee attitude or engagement surveys to track employees' attitudes on inclusion, fairness, opportunities for development, work/life balance, and perceptions of the company culture. Implement 360-degree feedback for all managers and supervisors.
deadwood
Low ability and motivation
Program implementation and evaluation
Make sure that some individual is held accountable for achieving the stated goals and has the necessary authority and resources to accomplish them Regular progress reports Evaluate the results
Top Management Support in Diversity
Make the business case for diversity. Include diversity as part of the business strategy and corporate goals. Participate in diversity programs, and encourage all managers to attend. Ensure that the composition of the executive management team mirrors the diversity of the workforce.
Nine Competencies Developed by SHRM 5. Global and Cultural Effectiviness
Manage HR both within and across boundaries
Nine Competencies Developed by SHRM 9. Relationship Management
Manage interactions with and between others with the specific goal of providing service and organizational success
Communication about pay
Managers must explain pay structure to employees. and are the most crucial
Divisional Structural Mangers
Managers of divisional structures often need to be more experienced or high in cognitive ability relative to managers of functional structures
results approach
Managers set goals that are used as standards to evaluate individuals' performance
External Recruitment Advantages
May not be any internal recruits Exposure to new ideas or ways of doing business Good way to strengthen one's own company and weaken one's competitors at the same time
Behavioral Observation Scale (BOS)
May require more information than most managers can process or remember variation of bars
criterion-related validity
Method of establishing validity of a personnel selection method by showing a substantial correlation between test scores and job-performance scores
Evaluation of Results Approach
Minimizes subjectivity Links an individual's results with the organization's strategies and goals Challenges: Can be both contaminated and deficient Individuals may focus only on aspects of their performance that are measured, neglecting those that are not Feedback may not help employees learn how they need to change their behavior to increase their performance
Strategic Formulation
Mission Goals External Analysis Internal Analysis Strategic Choice
LGBT Issues
Most businesses are more inclusive. The state of employment law has not caught up. The Equality Act of 2017 - Unlikely to pass The courts have not made a definitive decision
disadvantages of profit sharing
Most employees are unlikely to see a strong connection between what they do and what they earn under profit sharing. Most plans are deferred.
Managers as a source of performance information
Most frequently used source of performance information Motivated to make accurate ratings Feedback from supervisors is strongly related to performance and to employee perceptions of the accuracy of the appraisal
The Importance of Job Analysis to Line Managers
Must have detailed information about all the jobs in their work group to understand the work-flow process Need to understand the job requirements to make intelligent hiring decisions Are responsible for ensuring that each individual is performing satisfactorily Must ensure that the work is being done safely
Scientific Management Approach to Job Design
One of the best and most well known Workers are trained in the "one best way" to do a job, then selected on their ability to do the job Monetary incentives
Product Market Competition
Organizations must be able to sell their goods and services at a quantity and price that will bring a sufficient return on their investment. Product market competition places an upper bound (highest cost) on labor costs and compensation.
Intangible Assets in Intellectual Capital
Patents Copyrights Trade secrets Intellectual property
Drivers of Rention
Pay and job security Benefits ( younger employees prefer benefits over cash) Work environment Opportunities for development
Employers View on Pay
Pay is critical in attaining strategic goals. Pay impacts employee attitudes & behaviors. Employee compensation is significant organizational cost.
personality traits and values in regards to pay
Pay linked to individual performance - attracts individualistic and risk- oriented employees Pay linked team rewards - attract team oriented employees
Fairness
People compare their own ratio of perceived outcomes (pay, benefits, working conditions) to perceived inputs (effort, ability, experience) to the ratio of a comparison other.
Equity Theory
People evaluate the fairness of their situations by comparing them with those of other people.
Administrative Purpose of Performance Managment
Performance management information used for salary decisions, promotions, retention-termination, layoffs, and recognition of individual performance
rate ranges
Permit a company to recognize differences in employee performance, seniority, training, and so forth in setting individual pay For some jobs, there may be a single rate of pay for all employees within the job.
College and Universities as Recruitment Sources
Placement services Internship programs High school recruiting
Themes of Employment Engagement
Pride in employer Satisfaction with employer Satisfaction with the job Opportunity to perform challenging work Recognition and positive feedback Personal support from manager Effort above and beyond the minimum Understand link between one's job and company's mission Prospects for future growth with the company Intention to stay with the company
distance learning
Process of delivering educational or instructional programs to locations away from a classroom or site.
outcome uncertainty
Profit is an example of an outcome. Agents are less willing to have their pay linked to profits to the extent that there is a risk of low profits. They would therefore prefer a behavior-oriented contract.
Americans with Disabilities Act
Prohibits discrimination against people with disabilities
Age Discrimination in Employment Act of 1967
Prohibits discrimination against workers over the age of 40 and restricts mandatory retirement
Nine Competencies Developed by SHRM 8. Consultation
Provide guidance to stakeholders such as employees and leaders seeking expert advice on a variety of circumstances and situations
Work Flow Analysis
Provides a means for managers to understand all tasks required to produce a high-quality product and the skills necessary to perform those tasks analysis work outputs
Effect of OSHA
Raised level of awareness Does not directly regulate employee behavior
Strategic Implantation Employee Recruitment and Selection
Recruitment - the process of seeking applicants for potential employment selection - refers to the process by which it attempts to identify
Upward Feedback
Refers to appraisal that involves collecting subordinates' evaluations of managers' behaviors or skills
sexual harassment
Refers to unwelcome sexual advances Charges have been decreasing since 2010
Labor Market Competition
Reflects the number of workers available relative to the number of jobs available. If an organization is not competitive in the labor market, it will fail to attract and retain employees of sufficient numbers and quality. Places a lower bound (lowest cost) on pay levels
Under OSHA employees have the right to:
Request an inspection. Have a representative present at an inspection. Have dangerous substances identified. Be promptly informed about exposure to hazards and be given access to accurate records regarding exposure. Have employer violations posted at work site.
three components of results based systems
Require setting effective goals (SMART) Different types of measurements can be used for goals or objectives Goals usually set with managers' and subordinates' participation
Executive Order 11246
Requires affirmative action in hiring women and minorities It covers Federal contractors and subcontractors with contracts greater than $10,000
Rehabilitation Act of 1973
Requires affirmative action in the employment of individuals with disabilities
Vietnam Era Veterans Readjustment Assistance Act of 1974
Requires federal contractors and subcontractors to take affirmative action toward employing Vietnam veterans
Executive Order 11478
Requires federal government to base all its employment decisions on merit and fitness. Also covers organizations doing at least $10,000 worth of business with federal government.
Equal Pay Act of 1963
Requires that men and women performing equal jobs receive equal pay
fourth-fifths rule
Rule of thumb that finds evidence of discrimination if an organization's hiring rate for a minority group is less than four-fifths the hiring rate for the majority group.
Instructional Design Process STEP 5
Selecting a training method
Sarbanes-Oxley Act of 2002
Sets strict rules for corporate behavior and sets heavy fines and prison terms for noncompliance Imposes criminal penalties for corporate governing and accounting lapses including retaliation against whistle-blowers reporting violations of Security and Exchange Commission rules.
Social Performance Managment
Social media and microblogs similar to Facebook, LinkedIn, and Yammer that allow employees to quickly exchange information, talk to each other, provide coaching, and resolve feedback and recognition in the form of electronic badges
Linkage Between HRM and the Strategic Management Process
Strategic choice... Where to compete? How to compete? With what will we compete?
OSHA Citations and Penalties
The compliance officer can issue a citation to the employer that specifies the exact practice or situation that violates the act. The employer must post the citation. Fines may be assessed against the employer. Criminal penalties may also be assessed.
interrater reliability
The consistency among the individuals who evaluate the employee's performance
Customers as a source of performance information
The customer is often the only person present to observe the employee's performance and thus is the best source of performance information. Service companies use customer evaluations. When an employee's job requires direct service to the customer or linking the customer to other services within the company When the company is interested in gathering information to determine what products and services the customer wants
Utility
The degree to which information provided by selection methods enhances the effectiveness of selecting personnel impacted by reliability, validity, and generalizability
Agency Theory
The divergent interests and goals of the organization's stakeholders (principles and agents) The ways that employee compensation can be used to align these interests and goals Goal congruence and incongruence
psychological success
The feeling of pride and accomplishment that comes from achieving life goals.
tuition reimbursement
The practice of reimbursing employees' costs for college and university courses and degree programs.
Knowledge Managment
The process of enhancing company performance by designing and using tools, systems, and cultures to improve creation, sharing, and use of knowledge
Recruiters functional area
The recruiter is likely to be perceived as more credible if he or she is from the same functional area the recruit is being considered for.
Standards for Reliability
The required reliability depends in part on the nature of the decision being made about the people being measured.
Intended Strategies
The result of the rational decision-making process used by top managers as they develop a strategic plan.
Role of HRM
Time spent on administrative tasks is decreasing, roles as a strategic business partner, change agent and employee advocate are increasing.
merit pay
Traditional form of pay in which base pay is increased permanently
Opportunity to use learned capabilities
Trainee is provided with or actively seeks experience using newly learned knowledge, skills, behaviors from the training program. -used through assigned work experiences, problems, task
Coordination training
Training a team in how to share information and decision-making responsibilities to maximize team performance.
Instructional System Design (ISD) and ADDIE MODEL
Training programs 1. Determine if training is needed 2. Analysis - ensuring readiness for training 3. Design - addresses whether the training session or learning environment has factors necessary for learning to occur 4. Development - ensures trainees apply the content they have learned 5. Implantation - choosing a training method 6. Evaluation - determine whether training achieved is a desired learning outcome.
Group Incentives and Team rewards
Typically pertain to a smaller work group May use a broader range of performance measures May demotivate top performers
Dejobbing
Viewing organizations as a field of work needing to be done rather than a set of discrete jobs held by specific individuals
image advertising
When an organization promotes itself to help draw applicants Influence the degree to which the person feels attracted to the organization
Measurable Job Outcomes
When outcomes are more measurable, outcome oriented contracts are more likely.
Evaluating the Quality of a Source
Yield ratio - express the applicants that successfully move from one stage of the selection process to the next Cost per hire -
Compensable Factors
`The characteristics of jobs that an organization values and chooses to pay for.
Virtual Reality
a computer-based technology that provides an interactive, three-dimensional learning experience
fixed cost
a cost that does not change, no matter how much of a good is produced
variable cost
a cost that rises or falls depending on how much is produced
predictive validity
a criterion-related validity study that seeks to establish an empirical relationship between applicants' test scores and their eventual performance on the job
Furloughs
a cut in hours is targeted at salaried workers rather than hourly workers (teachers)
Personnel Policies
a generic term used to refer to organizational decisions that affect the nature of the vacancies for which people are recruited
alternative disput resolution
a method of resolving disputes that does not rely on the legal system
Bona fide occupational qualification
a necessary qualification rather than preferred for performing a job
employee assistance programs
a referral service that employees can use to seek professional treatment for emotional problems or substance abuse
Outplacement counseling
a service in which professionals try to help dismissed employees manage the transition from one job to another reduced likelihood of litigation by employee
Mission
a statement of the organization's reason for being; it usually specifies the customers served, the needs satisfied and/or the values received by the customers, and the technology used.
correlation coefficient
a statistical measure of the extent to which two factors vary together, and thus of how well either factor predicts the other +1.0 positive relationship -1.0 negative relationship
Organization Structure
a system of tasks, reporting relationships, and communication linkages
Training Design Process
a systematic approach for developing training programs
Leaderless Group Discussion
a team of five to seven employees is assigned a problem and must work together to solve it within a certain time period
Action Plan
a written document that includes the steps that the trainee and manager will take to ensure that training transfers to the job
cognitive outcomes
acquisition of knowledge- measured by pencil/paper test, work sample ( ex steps in appraisal interview
emotional intelligence
also important in team contexts and has been used to describe people who are especially effective in fluid and socially intensive contexts. self-awareness (knowledge of one's strengths and weaknesses), self-regulation (the ability to keep disruptive emotions in check), self-motivation (how to motivate oneself and persevere in the face of obstacles), empathy (the ability to sense and read emotions in others), social skills (the ability to manage the emotions of other people).
Centeralization
an element of organizational structure that refers to the degree to which decision making is concentrated at the top of the organization
rater error
an error in performance appraisals that reflects consistent biases on the part of the rater (ex: simular to me , contrast, halo, horns)
Mentoring
an experience productive senior employee who helps a less experienced employee
Learning Organization - competitive advantage
an organization that has developed the capacity to continuously learn, adapt, and change
Selection Interviews
are a dialogue initiated by one or more persons to gather information and evaluate the qualifications of an applicant for employment. Should be structured, standardized, and focused on goals oriented to skills and observable behaviors. Interviewers should be able to quantitatively rate each interview. Interviewers should have a structured note-taking system that will aid recall to satisfying ratings.
Exempt Emloyees
are not covered by the FLSA. They are not eligible for overtime pay (exect, admin)
Direct Applicants
are people who apply for a vacancy without prompting from an organization.
Referrals
are people who are prompted to apply for a vacancy by someone within the organization.
Strategic Types Role Behaviors
are the behaviors required of an individual in his or her role as a jobholder in a social work environment. These role behaviors vary on a number of dimensions. Additionally, different role behaviors are required by the different strategies.
Determining labor and supply shortage
ascertain whether there will be a labor shortage or labor surplus for the respective job categories determine what to do about these potential problems
Safety Awareness Programs
attempt to instill symbolic and substantive changes to a safety program. There are three primary components of a safety awareness program: 1. identifiying and communicating job hazards 2. reinforcing safe practices 3. promoting safety internationally
Work Samples
attempt to simulate the job in a pre-hiring context to observe how the applicant performs in the simulated job. The degree of fidelity in work samples can vary greatly.
Paper and Pencil Honesty Test
attempts to assess the likelihood that employees will steal and social conformity, conscientiousness and emotional stability.
Frame of reference training or rater accuracy training
attempts to emphasize the multidimensional nature of performance and to get raters to understand and use the same idea of high, medium, and low performance when making evaluations
Reducing Error Training
attempts to make managers aware of rating errors and helps them develop strategies for minimizing those errors
Melting the Glass Ceiling
barrier to advancement to higher-level jobs in the community that adversely affects women and minorities. The barrier may be due to lack of access to training programs, development experiences, or relationships women and underrepresented in all levels of management may be due to stereotypes
Human Resource As A Business 3 Product Lines
1. Administrative Services + Transactions - compensation, hiring, staffing 2.Business Partner Services - developing hr services, implementing business plans and talent management 3. Strategic Partners - Contributing to the business strategy based on considerations of human capital, business capabilities, readiness, and developing HR practices as strategic differentiators
Components of Strategic Managment
1. Strategy Formulation - Strategic planning groups decide on a strategic direction by defining the company's mission and goals, its external opportunities and threats, and its internal strengths and weaknesses. 2. Strategy Implantation - The organization follows through on the strategy that has been chosen. This includes structuring the organization, allocating resources, ensuring that the firm has skilled employees in place, and developing reward systems that align employee behavior with the strategic goals. This process entails a constant cycling of information and decision making.
3 Basic Standards To Be Considered Ethical
1. result in the greatest good for the largest number of people 2. must respect basic human rights of privacy, due process, consent, and free speech 3. must treat employees and customers equitably and fairly
Internal Growth Strategies
A focus on new market and product development, innovation, and joint ventures. Companies must constantly hire, transfer and promote individuals. Compensation weighted towards the achievement Joint ventures require conflict resolution
Emergent Strategies
Consist of the strategies that evolve from the grassroots of the organization Can be thought of as what organizations actually do, as opposed to what they intend to do Usually identified by those lower in the organizational hierarchy
Sustainability includes the ability to
Deal with economic and social changes Practice environmental responsibility Engage in responsible and ethical business practices Provide high-quality products and services Put in place methods to determine if the company is meeting stakeholders' needs
Strategic Implantation Labor and Employee Relations
Employees - asset or expense? How much should employees participate in decision making? What rights do employees have? What is the company's responsibility to employees? The approach a company takes in making these decisions can result in successfully achieving its short and long-term goals or ceasing to exist.
differntiation strategy
Employees are expected to exhibit role behaviors that include cooperating with others, developing new ideas, and taking a balanced approach to process and results
Shared service model
Includes centers of expertise or excellence, service centers, and business partners Central place for administrative and transactional tasks
Nine Competencies Developed by SHRM 4. Ethical Practice
Integrate core values, integrity, and accountability throughout all organizational and business practices
Nine Competencies Developed by SHRM 3. Critical Evaluation
Interpret information to determine return on investment and organizational impact in making recommendations and business decisions
Generational Differences
Members of each generation may have misperceptions of each other causing tensions and misunderstanding in the workplace
Four levels of integration between HRM and the strategic management function
administrative linkage - one-way linkage - two-way linkage - integrative linkage -
Two Way linkage in HRM and Strategic Management
allows for consideration of HR issues during the strategy formulation process and are interdependent.
Internal Labor Force
an organization's workers (its employees and the people who have contracts to work at the organization)
Strategic Implantation Job analysis and design
analysis - process of getting detailed information about jobs design - what task should be grouped into particular jobs
Goals
are what it hopes to achieve in the medium- to long-term future; they reflect how the mission will be operationalized.
Human Resource Management plays a key role in
companies survival, effectiveness, and competitiveness
Gig Economy
companies who rely primarily on nontraditional employment to meet service and product demands
Competitiveness
refers to a company's ability to maintain and gain market share in its industry How effectively an organization meets the wants and needs of customers relative to others that offer similar goods or services
Malcome Baldrige National Quality Award
promotes quality awareness, to recognize quality achievements, and to publicize successful quality strategies. The categories of examination include: leadership, measurement, analysis and knowledge, strategic planning, workforce, operations, customer focus and design improvement. ISO 9000:2000 quality standards adopted worldwide
learning organization
embraces a culture of lifelong learning, enabling all employees to continually acquire and share knowledge.
Balanced Scorecard
gives managers an indication of the performance of a company based on the degree to which stakeholder needs are satisfied; it depicts the company from the perspective of internal and external customers, employees, and shareholders. Being customer-focused Improving quality Emphasizing teamwork Reducing new product and service development times Managing for the long term
mergers and acquisitions
increasing HR needs to be involved People issues can cause problems Different organizational cultures Conflict resolution
Knowledge Workers
individuals valued for their ability to interpret and analyze information In demand because companies need their skills and jobs requiring them are growing
External Labor Force
individuals who are actively seeking employment Average age of workforce will increase Increased workforce diversity Immigration will affect size and diversity
strategic managment
is a process for analyzing a company's competitive situation, developing the company's strategic goals, and devising a plan of action and allocation of resources that will help a company achieve its goals
Lean Thinking
is a way to do more with less effort, time, equipment, and space, but still provide customers with what they need and want.
gross margin
margin is the total amount of margin you made and is calculated as the number of units sold times the contribution margin
High Impact Human Resource
more integrated with the business more skilled at attracting and retaining employees can adapt quickly identify and promote talent from within identify what motivates employees continuously building talent and skills
reshoring
moves jobs back from foreign to domestic locations
Variables to be considered in strategic Implantation
organizational structure HRM tasks task design selection, training, and development of people reward systems types of information and information systems
business model
outlines the need the firm will fill, the operations of the business, its components and functions, as well as the expected revenues and expenses