Management Chapter 12

Cafeteria Plan

Benefits packages allow employees to select benefits for themselves

Changing Nature of Careers

-Employees operate under new social contract -Downsizing,outsourcing,rightsizing&restructing have left little stability -Employees expected to be selfmotivated -Organizations must be creative with training/development -New performance appraisal processes required.

Impact of Federal Legislation on HRM

-HR managers must stay on top of legal/regulatory enviroment. -Many laws exist to ensure equal opportunity and stop discrimination

Factors to consider when doing Performance Appraisals

-Have warm-up session so employee can relax, conduct your eval first then let employee eval themselves, accentuate the positives, evaluate employee's performance,focus on problem and not the person, Be candid/specific, Avoid generalities.

Termination

Employees leave voluntarily, retire, are rightsized and are fired for performance. -Poor performance employees can be disruptive

Performance Appraisal

Evaluating performance, recording assessment, and providing feedback.

Contingent Workers

Not permanent,maintain flexibility,keep cost low.

Training And Development

On the job training,social learning,corporate universities, promotion within,mentor/coaching

Halo Effect

a manager gives an employee the same rating on all dimensions, even if his or her performance is good on some dimensions and poor on others.

Job Analysis

a systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job, as well as about the context within which the job is performed

Internships

arrangement whereby an intern (usually a high school or college student) exchanges free or low-cost labor for the opportunity to explore whether a particular career is appealing or to gain valuable work experience in a particular field

Social Learning

basically means learning informally from others by using social media tools, including mobile technologies, social networking, wikis and blogs, virtual games, and so forth

Panel Interviews

in which the candidate meets with several interviewers who take turns asking questions

Corporate Universities

in-house training and education facility that offers broad-based learning opportunities for employees—and frequently for customers, suppliers, and strategic partners as well—throughout their careers

Employment Tests

include cognitive ability tests, physical ability tests, personality inventories, and other assessments.

Nondirectivve Interview

interviewer asks broad, open-ended questions and permits the applicant to talk freely, with minimal interruption. Nondirective interviews may bring to light information, attitudes, and behavioral characteristics that might be concealed when answering structured questions.

Development

involves teaching broader skills

Recruiting

is defined as "activities or practices that define the characteristics of applicants to whom selection procedures are ultimately applied."38 Today, recruiting is sometimes referred to as talent acquisition to reflect the importance of the human factor in the organization's success.39

Human Resource Planning

is the forecasting of HR needs and the projected matching of individuals with expected vacancies. Human resource planning begins with several big-picture questions: • What new technologies are emerging, and how will these affect the work system? • What is the volume of the business likely to be in the next five to ten years? • What is the turnover rate, and how much, if any, is avoidable?

Discrimination

occurs when hiring and promotion decisions are made based on criteria that are not job-relevant

Rightsizing

refers to reducing the company's workforce intentionally to the point where the number of employees is deemed to be right for the company's current situation. Reduce the company workforce to the right size.

Human Capital

refers to the economic value of the combined knowledge, experience, skills, and capabilities of employees.

Job Evaluation

refers to the process of determining the value or worth of jobs within an organization through an examination of job content.

Structured Interview

use a set of standardized questions that are asked of every applicant so that comparisons can easily be made. These may include biographical interviews, which ask about the person's previous life and work experiences; behavioral interviews, which ask people to describe how they have performed a certain task or handled a particular problem; and situational interviews, which require people to describe how they might handle a hypothetical situation.

Interview

used as a selection technique in almost every job category in nearly every organization. This is another area where the organization can get into legal trouble if the interviewer asks questions that violate EEO guidelines

Application Form

used to collect information about the applicant's education, previous job experience, and other background characteristics.

On the Job Training

where an experienced employee is asked to take a new employee "under his or her wing" and show the newcomer how to perform job duties

Realistic Job Previews

which give applicants all pertinent and realistic information—positive and negative—about the job and the organization

Job Description

which is a clear and concise summary of the specific tasks, duties, and responsibilities

Stereotyping

which occurs when a rater places an employee into a class or category based on one or a few traits or characteristics

Job Specification

which outlines the knowledge, skills, education, physical abilities, and other characteristics needed to perform the job adequately.

Affirmative Action

-requires that an employer take positive steps to guarantee equal employment opportunities for people within protected groups. -Companies should make a concerted effort to recruit, hire, and promote minorities due to past discrimination practices.

Innovations in HRM

1.Becoming an Employer of Choice: Organizations that are highly attractive to potential employees b/c of HR practices. 2.Using temporary/part-time employees 3.Acquiring Start-Ups: Acqui-hiring which is buying an early stage start up and gaining its employees.

Top 3 Factors for Maintaining Competitive Success

1.Human Capital 2.Customer Relationships 3.Product/Service Innovation

Compensation

All monetary payments and all goods or commodities used to reward employees.

Promotion from Within

Another way to further employee development is through promotion from within, which helps companies retain and develop valuable people. Promotions provide more challenging assignments, prescribe new responsibilities, and help employees grow by expanding and developing their abilities.

Compensation Equity

Fairness and equity

Strategic HR Management

Find the right people: Job Analysis, forecasting,HRM planning Manage talent: Training/Development,Appraisal Maintain Effective Workplace:Wages/Salary

Sexual Harassment

Growing concern that is a violation of civil rights Act.

Strategic Role of HRM

HR must drive organizational performance; it's the competitive advantage/edge.

Development

Involves teaching broader skills

Wage and Salary Systems

Job Based Pay-linking compensation to the specific tasks an employee performs Skill Based Pay-Employees with higher skill levels receive higher pay than those with lower skill levels. Competency Based Pay-skill-based pay systems encourage people to develop their skills and competencies, thus making them more valuable to the organization, as well as more employable if they leave their current jobs Pay for Performance-

Benefits

Organizations are required by law to provide some benefits, such as Social Security, unemployment compensation, and workers' compensation

Pay for Performance

Raise productivity and cut labor costs in competitive enviroment

Legal Considerations

Recruiting practices must be legal

Online Checks

The Internet gives recruiters and hiring managers a new way to search for a candidate's criminal record, credit history, and other indications of honesty, integrity, and stability. Moreover, many companies want to see what a candidate has to say about him or herself on blogs and social networking sites to gauge whether the person would be a good fit with the organization

Pay for Performance

also called incentive pay, means tying at least part of compensation to employee effort and performance, whether it be through merit-based pay, bonuses, team incentives, or various gain-sharing or profit-sharing plans

Exit interview

an interview conducted with departing employees to determine why they are leaving the company. The value of the exit interview is to provide an inexpensive way to learn about pockets of dissatisfaction within the organization and hence find ways to reduce future turnover.

Selecting

employers assess applicants' characteristics in an attempt to determine the "fit" between the job and applicant characteristics. The most frequently used selection devices are the application form, interview, and employment test

Matching Model

the organization and the individual attempt to match the needs, interests, and values that they offer each other.

Remember This

• Compensation refers to all monetary payments and all nonmonetary goods or benefits used to reward employees. • Managers strive to maintain fairness and equity in the pay system. • Job evaluation is the process of determining the value of jobs within an organization through an examination of job content. • Wage and salary surveys show what other organizations pay incumbents in jobs that match a sample of key jobs selected by the organization. • Pay-for-performance, also called incentive pay, means tying at least a portion of compensation to employee effort and performance. • Benefits make up a large portion of labor costs in the United States. • During the recession, many organizations have cut benefits that are not required by law. • Rightsizing, also called downsizing, refers to reducing the company's workforce intentionally to the point where the number of employees is deemed right for the company's current situation. • If not managed effectively and humanely, rightsizing can lead to decreased morale and performance. • An exit interview is an interview conducted with departing employees to determine reasons for their departure and learn about potential problems in the organization. • Campbell Soup Company and some other organizations let people complete an online exit questionnaire so they can express their complaints or ideas freely, without having to talk face to face with a manager.

Remember This

• Finding the right people starts with human resource planning, which refers to the forecasting of HR needs and the projected matching of individuals with anticipated job vacancies. • The matching model is an HR approach in which the organization and the individual attempt to match each other's needs, interests, and values. • Recruiting refers to activities or practices that define the desired characteristics of applicants for specific jobs. • Many of today's organizations use social media, including Twitter, Weibo, LinkedIn, Tianji, and Facebook, for recruiting. • Job analysis is the systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job. • Managers prepare a job description for each open position, which is a concise summary of the specific tasks and responsibilities of that job. • A job specification outlines the knowledge, skills, education, physical abilities, and other characteristics needed to perform a specific job adequately. • Managers use realistic job previews (RJPs) in recruiting to give applicants all pertinent and realistic information—both positive and negative—about a job and the organization. • Internships are an increasingly popular approach to recruiting because they provide a way to "test-drive" a potential employee. • An internship is an arrangement whereby an intern (usually a high school or college student) exchanges his or her services for the opportunity to gain work experience and see whether a particular career is appealing.

Remember This

• HR managers have to understand and apply a variety of federal laws that prohibit discrimination, establish safety standards, or require organizations to provide certain benefits. • Discrimination means making hiring and promotion decisions based on criteria that are not job-relevant. • Affirmative action requires that employers take positive steps to guarantee equal employment opportunities for people within protected groups. • The National Labor Relations Board (NLRB) recently filed suit on behalf of an employee who was fired because of a comment that she made on a social networking site.

Remember This

• Human resource management (HRM) refers to the design and application of formal systems to ensure the effective and efficient use of human talent to accomplish organizational goals. • HRM includes activities undertaken to attract, select, develop, and maintain an effective workforce. • HR managers are vital players in corporate strategy because no strategy can be effective without the right people to put it into action. • Human capital refers to the economic value of the combined knowledge, experience, skills, and capabilities of employees. • Mining giant Anglo American PLC created its own training facility to develop a pool of skilled, dedicated employees for its Minas Gerais iron ore mine in Brazil.

Remember This

• Selection is the process of assessing the skills, abilities, and other attributes of applicants in an attempt to determine the fit between the job and each applicant's characteristics. • The application form is a selection device that collects information about the applicant's education, previous work experience, and other background characteristics. • A structured interview uses a set of standardized questions that are asked of every applicant so that comparisons can be made easily. • In a nondirective interview, the interviewer asks broad, open-ended questions and permits the applicant to talk freely with minimal interruption in an attempt to bring to light information, attitudes, and behavioral characteristics that might be concealed when answering structured questions. • A panel interview is an interview in which the candidate meets with several interviewers who take turns asking questions. • Some companies are using offbeat approaches, called extreme interviewing, to test job candidates' ability to handle problems, cope with change, and work well with others. • Employment tests assess candidates on various factors considered important for the job to be performed; they include cognitive ability tests, physical ability tests, and personality tests. • One way in which HR managers gauge an applicant's suitability for an open position is by checking what the applicant says on social media sites. • Maryland was the first state to pass a law making it illegal to ask job applicants for their social networking passwords, and other states have either also done so or are considering it.

Remember This

• The new social contract between employers and employees is based on the notion of employability and personal responsibility rather than lifelong employment by an organization. • An employer brand is similar to a product brand except that it promotes the organization as a great place to work, rather than promoting a specific product or service. • Contingent workers are people who work for an organization, but not on a permanent or full-time basis, including temporary placements, independent contractors, freelancers, and part-time employees. • It is estimated that up to 40 percent of Americans are in part-time, contract, or other types of nonstandard jobs. • Acqui-hiring means buying an early-stage start-up (and usually shutting it down) in order to obtain the creative talent.

Remember This

• Training typically refers to teaching people skills needed in their current job, whereas development refers to teaching people broader career skills. • The most common method of training is on-the-job-training (OJT), in which an experienced employee is asked to teach a new employee how to perform job duties. • Social learning refers to using social media tools to network and learn informally. • A corporate university is an in-house training and development facility that offers broad-based learning opportunities for employees. • McDonald's Hamburger University has seven management training centers around the world, including one in Shanghai and one in São Paulo. • Performance appraisal is the process of observing and evaluating an employee's performance, recording the assessment, and providing feedback. • A recent trend is 360-degree feedback, which uses multiple raters, including self-rating, to appraise employee performance and guide development. • Performance-review ranking systems are increasingly being criticized because they tend to pit employees against one another rather than promoting cooperation and teamwork. • Stereotyping is a performance-evaluation error that occurs when a manager places an employee into a class or category based on one or a few traits or characteristics. • The halo effect occurs when a manager gives an employee the same rating on all dimensions of the job, even though performance may be good on some dimensions and poor on others. • One way to overcome evaluation errors is to use a behaviorally anchored rating scale (BARS), which is a performance evaluation technique that relates an employee's performance to specific job-related incidents.