Chapters 6-9 HR Study Guide

Review of Résumés

A résumé is a goal-directed summary of a person's experience, education, and training Professional/managerial applicants often begin the selection process by submitting a résumé Includes the career objective for the specific position the applicant is seeking Includes the skills and competencies necessary to accomplish the position

Types of Employment Tests

Achievement test: A test of current knowledge and skills Aptitude test: A test of how well a person can learn or acquire skills or abilities Types of Tests: Cognitive aptitude Psychomotor abilities Job Knowledge Work-sample (simulation) Vocational interests Personality

Appraisal Interview

Achilles' heel of entire evaluation process Must have performance improvement, not criticism, as their goal Potential of confrontation

OD Interventions

Survey feedback Quality circles Team building

Selection Tests Advantages and Disadvantages

Advantages Reliable and accurate means to predict on-the-job performance Cost small in comparison to ultimate hiring costs Identify attitudes and job-related skills that interviews cannot recognize Disadvantages Can do v. Will do Legal liabilities Test anxiety

Management Development

All learning experiences resulting in upgrading of skills and knowledge needed in current and future managerial positions First-line supervisors, middle managers, and executives may all participate in management development programs

Medical Examination

Americans with Disabilities Act (ADA) does not prohibit pre-employment medical examinations. But it does determine the point at which they may be administered during selection process All exams must be directly relevant to the job requirements The firm cannot order a medical exam until the applicant is offered the job

Behavioral Interview

Applicants are asked to relate actual incidents from their past relevant to the target job Past behavior is the best predictor of future behavior Behavioral questions - Job relevant Example: Relate a scenario where you were responsible for motivating others

Application

Application form must reflect not only firm's informational needs, but also EEO requirements Essential information is included and presented in standardized format

Problems in Performance Appraisal

Appraiser discomfort Lack of objectivity Halo/horn error (generalization) Leniency/strictness Recent behavior bias Personal bias Manipulating the evaluation Employee anxiety

Mentoring

Approach to advising, coaching, and nurturing, for creating a practical relationship to enhance individual career, personal, and professional growth and development Mentor may be located anywhere in the organization or in another firm Relationship may be formal or informal

Direct financial compensation

Base pay Cost-of-living adjustments Seniority pay Performance-based pay Merit pay, merit bonus, individual incentive plans, team-based plans, profit sharing Person-focused pay Skill-based pay

Gainsharing

Binds employees to firm's productivity and provides incentive payment based on improved company performance Helps align an organization's people strategy with its business strategy

Preprinted Statements on Application Form

Certifies that information provided on the form is accurate and true Should state position is employment at will Gives permission to have background and references checked Avoid potential discriminatory questions!

T&D Methods

Classroom method Case Study E-learning Behavior Modeling Role Playing Business Games On-the-Job Training Internships Apprenticeship Training

Skills-Based Pay

Compensates employees for their job-related skills and knowledge. Employee who know more are more valuable for the firm

Realistic Job Previews

Conveys both positive and negative job information to the applicant in an unbiased manner

Training & Development Delivery Systems

Corporate Universities Colleges and Universities Community Colleges Online Higher Education Vestibule Training Video Media Simulators Social networking

Validity & Reliability of Tests

Criterion-related validity: Comparing scores on selection tests to some aspect of job performance Content validity: Includes certain tasks actually required by job Construct validity: Measures certain traits or qualities important in performing job

Classification Method

Define number of classes or grades to describe group of jobs Compare job description with class description Class description that most closely agrees with job description determines job classification

Background Investigations

Determine accuracy of the information submitted or to determine if vital information was not submitted The principal reason for conducting background investigations is to hire better workers Ask applicants to sign a liability waiver permitting a background investigation

Extent of Learning

Determine what participants have learned Pre-test-post-test control group design Differences are attributed to training provided Problem: Controlling for variables other than training

Strategic Benefits of T&D

Employee satisfaction Improved morale Higher retention Lower turnover Improved hiring Better bottom line Satisfied employees produce satisfied customers

Comparison Systems

Evaluate an employee's performance against that of another Employees ranked from the best performer to the poorest performer Supervisors judge overall performance or specific ones (e.g., timeliness) Paired Comparison: Variation of ranking method Compares performance of each employee with every other employee in group Forced Distribution: Rater assigns individual in work group to limited number of categories Assumes all groups of employees have same distribution Proponents of forced distribution believe: They facilitate budgeting They guard against weak managers who are too timid to get rid of poor performers Require managers to be honest with workers about how they are doing Also called a rank-and-yank system Unpopular with many managers May damage morale and generate mistrust of leadership Rankings may be way for companies to easily rationalize firings

Trait Systems

Evaluate employees based on traits (for example): Dependability Limitations (e.g., traits represent a predisposition for behavior, but not behavior itself)

Exempt and Nonexempt Employees

Exempt employees - Categorized as executive, administrative, professional employees and outside salespersons Overtime pay is not legally required for these employees Nonexempt employees - Those in jobs not conforming to above definition Most employees who earn less than $23,660 will be considered nonexempt no matter what their duties are

Factor Comparison Method

Five universal job factors - Mental requirements, skills, physical requirements, responsibilities, and working conditions Raters need not keep entire job in mind as they evaluate; instead, they make decisions on separate aspects or factors of job

Results-Based Systems

Focuses on measurable outcomes such as sales, accident rates, and productivity Selection of results depends on: Relevance of results toward strategic goals Reliability with which results can be measured Validity of performance measure Management by Objectives: Supervisors and employees decide on performance objectives They decide whether objectives are tied to the company's strategic goals Progress is reviewed and decisions such as objective revision are made Work Standards: Compares performance to predetermined standard Standards: Normal output of average worker operating at normal pace Time study and work sampling used Workers need to know how standards were set

Performance Appraisal

Formal system of review and evaluation of individual or team task performance Often negative, disliked activity that seems to elude mastery

Employment Interview

Goal-oriented conversation where the interviewer and applicant exchange information Traditionally, interviews have not been valid predictors of success on the job Interviews continue to be the primary method to evaluate applicants

Performance Management

Goal-oriented process directed toward ensuring that organizational processes are in place to maximize productivity of employees, teams, and organization

Accomplishment of T&D Objectives

Has training achieved stated objectives and actually impacted performance Might establish a return on investment (ROI) metric

Training and development (T&D)

Heart of a continuous effort designed to improve employee competency and organizational performance Training - Provides learners with the knowledge and skills needed for their present jobs Development - Learning that goes beyond today's job and has a more long-term focus T&D align firm's employees with its corporate strategies

Sequence of the Performance Appraisal Process

Human resource planning Recruitment and selection Training and development Career planning and development Compensation programs Internal employee relations

Responsibility for Appraisal

Immediate supervisor (traditionally been responsible for evaluating employee performance) Subordinates Peers and team members Self-appraisal Customer appraisal 360-degree feedback It is essential that line managers play a key role in performance appraisal from beginning to end

Potential Interviewing Problems

Inappropriate Questions Most basic interviewing rule is this: Ask only job-related questions Interviewer bias Interviewer domination Permitting non-job related information Lack of training Nonverbal communication

Content validity

Includes certain tasks actually required by job

On-the-Job Training (OJT)

Informal T&D method that permits an employee to learn job tasks by actually performing them Most commonly used T&D method No problem transferring what has been learned

Job as Determinant of Direct Financial Compensation

Job itself continues to be a factor, especially in firms that have internal pay equity as primary consideration Organizations pay for the value they attach to certain duties, responsibilities, and other job-related factors such as working conditions

Characteristics of Effective Appraisal System

Job-related criteria Performance expectations Standardization Trained appraisers Continuous open communication Conduct performance reviews Due process

Compensation Policies

Market lead policies - Pay higher wages and salaries Market match policies (Market rate) - Pay what most employers pay for same job. Most important factor in determining pay. Market lag policies - Pay below market rate because poor financial condition or believe that they do not require highly capable employees

Participants' Opinions

Measure level of customer satisfaction Overall experience may bias some reports Good way to obtain feedback and to get it quickly and inexpensively

Organizational fit

Measures of HR performance Task of measuring and understanding how they contribute to the bottom line is often difficult No one-size-fits-all metric

Performance-Based Pay

Merit pay Bonus (one-time award not built into base pay) Spot bonuses Piecework

Fair Labor Standards Act of 1938, as Amended

Most significant law affecting compensation Establishes minimum wage Requires overtime pay and record keeping Provides standards for child labor

Point Method

Numerical values assigned to specific job components Sum of values gives quantitative assessment of job's relative worth Job factors selected according to nature of specific group of jobs

Content of the Interview

Occupational experience Academic achievement Interpersonal skills Personal qualities

Problems when implementing Training & Development programs

Often difficult Many managers are action-oriented Feel they are too busy to engage in T&D efforts Qualified trainers must be available Requires high degree of creativity Scheduling of training

Methods of Interviewing

One-on-one interview Board interview Multiple interviews Video interview Stress interview

Metrics for Evaluating Training and Development

Participants' Opinions Extent of Learning Behavioral Change Accomplishment of T&D Objectives

Employee as Determinant of Direct Financial Compensation

Performance Skills Competencies Seniority Experience Potential

Job Pricing

Placing dollar value on worth of job Pay grades - Grouping of similar jobs to simplify pricing jobs Pay ranges - Minimum and maximum pay rate with enough variance between to allow for significant pay difference

Organization Development (OD)

Planned process of improving an organization by developing its structures, systems, and processes to improve effectiveness and achieve desired goals Designed to develop more open, productive, and compatible workplace despite differences in personalities, culture, or technologies Applies to entire system such as a company or plant

Labor Market as Determinant of Direct Financial Compensation

Potential employees located within the geographic area from which employees are recruited Pay for the same jobs in different labor markets may vary considerably Labor Unions: Mandatory collective bargaining between management and unions as "wages, hours, and other terms and conditions of employment." Labor unions tend to favor seniority as the basis for compensation changes

Identify the environmental factors affecting the selection process

Previous employment Education verification Personal reference check Criminal history Driving record Civil litigation Workers' compensation history Credit history Social security number

Selection Definition

Process of choosing from a group of applicants the individual best suited for a particular position and the organization The goal of the selection process is to properly match people with jobs and the organization

Job Evaluation

Process that determines the relative value of one job in relation to another Ranking Classification Factor comparison Point Method

Behavioral Systems

Rates extent to which employees display successful job performance behaviors Three types: Critical Incident Technique (CIT): Appraisal method is most likely to cover the entire evaluation period and not focus on the last few weeks or months Requires managers to keep written records of highly favorable and unfavorable work actions Behaviorally Anchored Rating Scales (BARS): Combines traditional rating scales and critical incidents methods Job behaviors derived from critical incidents described more objectively Behavioral Observation Scale (BOS): Appropriate for jobs that require observable behaviors Requires observation of job behaviors on a regular basis Evaluates employees according to how frequently they exhibit the required behavior for excellent performance

Walsh-Healy Act of 1936

Requires companies with federal supply contracts exceeding $10,000 to pay prevailing wages Requires 1½ times the regular pay rate for hours over 8 per day or 40 per week

Ranking Method

Simplest method Raters examine description of each job Jobs arranged in order according to their value to the company

Characteristics of Properly Designed Selection Tests (standardization, norm)

Standardization - Uniformity of the procedures and conditions of administering test Norms - Frame of reference for comparing an applicant's performance with that of others A score by itself is insignificant Reliability - Provides consistent results Validity (Job Related) - Measures what it is supposed to measure Requirement for Job Relatedness - Title VII requires the test to work without having an adverse impact on minorities, females, and individuals with backgrounds or characteristics protected under law

E-Learning

T&D method for online instruction Takes advantage of technology for greater flexibility of instruction Often most convenient delivery method for adult learners Major advantage is cost

Role Playing

T&D method where participants are required to respond to specific problems they may encounter in their jobs by acting out real-world situations Used to teach skills such as: Interviewing Grievance handling Performance appraisal reviews Conference leadership Team problem solving Communication "Learn by doing"

Behavior Modeling

T&D method which permits a person to learn by copying or replicating behaviors of others to show managers how to handle various situations Conducting performance appraisal reviews Correcting unacceptable performance Delegating work Handling discrimination complaints Overcoming resistance to change Mediating individuals or groups in conflict

Behavioral Change

Tests may accurately indicate what trainees learn Tests may give little insight into whether participants to changed their behavior Best demonstration of value: When learning translates into lasting behavioral change

Negligent Hiring

The liability a company incurs when it fails to conduct a reasonable investigation of an applicant's background, and then assigns a potentially dangerous person to a position where he or she can inflict harm

Equity Theory

The market rate is the most important standard for determining pay

Selection ratio & applicant pool

The person whose qualifications most closely conform to the requirements of the open position and the organization should be selected The person who normally makes the final selection is the manager who will be responsible for the new employee's performance

Factors Influencing T&D

Top management support Shortage of skilled workers World complexity Learning styles Other human resource functions

Compensation

Total of all rewards provided employees in return for their services Direct financial compensation - Pay received in the form of wages, salaries, bonuses, and commissions Indirect financial compensation (benefits) - All financial rewards that are not included in direct financial compensation Nonfinancial compensation - Satisfaction that a person receives from the job itself or from psychological and/or physical environment in which the person works

Performance Appraisal Systems

Trait systems Comparison systems Behavioral systems Results-based systems

Establish Performance Criteria (Standards)

Traits Behaviors Competencies Goal Achievement

Types of Interviews (structured and unstructured) identify main characteristics of each

Unstructured. Open-ended questions (nondirective) Asks probing, open-ended questions It has potential legal woes because of the likelihood of discussing ill-advised, discriminatory information Structured (directive or patterned) Series of job-related questions asked of each applicant for a particular job Increases reliability and accuracy by reducing the subjectivity and inconsistency of unstructured interviews Job knowledge questions Worker requirements questions Behavioral Situational Creates hypothetical situations candidates would be likely to encounter on the job and ask how they would handle them Example: One of your employees has shown a significant decline in productivity. How would you handle it?