Management Chapter 12 - Managing Human Talent

Additional benefits offered to attract and maintain effective workforce

free dry cleaning for employees, and more than 11 percent of waste management companies give employees free food and drinks.

behavioral questions

interview questions that ask people to describe how they have performed a certain task or handled a specific problem

Some benefits required by law

social security, unemployment compensation, workers compensation

Background check

the process of verifying certain information provided by a job applicant

job description

A concise summary of the specific tasks and responsibilities of a position.

Social learning

Using social media tools to network and learn informally.

performance review ranking system

method in which managers evaluate direct reports relative to one another and categorize each on a scale

Company Strategy: Maintain an Effective Workforce

-wages and salary -benefits -labor relations -terminations

Discrimination

1) Making hiring and promotion decisions based on criteria that are not job-relevant. (2) When someone acts out their negative attitudes toward people who are the targets of their prejudice.

Attracting an Effective Workforce steps

1. HR Planning Departures Growth 2. Recruiting Source Search Firm Internet Walk-ins 3. Selection Application Interview Testing New Employee

Top Job Search Websites

1.ZipRecruiter 2.LinkedIn 3.CareerBuilder 4.Monster 5.Flexjobs

Matching model:

A human resources (HR) approach in which the organization and the individual attempt to match each other's needs, interests, and values.

on-the-job training (OJT)

A process in which an experienced employee is asked to teach a new employee how to perform job duties.

Development:

A process of improvement in the material conditions of people through diffusion of knowledge and technology.

application form

A selection device that collects information about the applicant's education, previous work experience, and other background characteristics.

Employment tests

A test given to employees to evaluate their abilities; can include cognitive ability tests, physical ability tests, personality inventories, and other assessments.

Recruiting

Activities or practices that define the desired characteristics of applicants for specific jobs; sometimes called talent acquisition.

compensation

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

internship

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.

corporate university

An in-house training and development facility that offers broad-based learning opportunities for employees.

Structured interviews

An interview that uses a set of standardized questions that are asked of every applicant so comparisons can be made easily.

Employer brand: example

At RMS (Risk Management Solutions), HR executive Amelia Merrill used employer branding after she discovered that few people in Silicon Valley, where the firm is based, had a clue what RMS was. To attract the kind of high-quality technology professionals that RMS needed, Merrill's team began selling the company in the same way that its salespeople sold its services. However, many large, well-known companies, including PepsiCo, General Electric (GE), AT&T, and Credit Suisse Group, are also using employer branding as companies both large and small fight for top talent.

Remember This

Compensation refers to all monetary payments and all nonmonetary goods or benefits used to reward employees. Most companies use the term rewards or total rewards rather than compensation to include a broad range of rewards such as wages and salaries, incentive payments, bonuses, and benefits. Managers at some companies realize that many factors contribute to employee satisfaction and job performance, so they have begun making employee happiness a priority. Managers strive to maintain fairness and equity in the pay system. Nike adjusted pay for thousands of employees to ensure equity between the same job functions around the world. 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. First Republic pays up to $200 a month toward an employee's student loan debt. 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.

Amazon 2018

Eliminated their experimental AI recruiting tool when they discovered it discriminated against women. The tool was designed to search the web in search of potential candidates and ranked them from 1 to 5 stars. The algorithm learned to downgrade women's past experience. Amazon could not improve the algorithm to make it gender-neutral.The algorithm learned bias from different sources.

New Contract Aspirations

Employee Employability; personal responsibility Partner in business improvement Learning; skill development Employer Creative development opportunities Lateral career moves; incentive compensation Challenging assignments Information and resources; decision-making authority

Old Contract

Employee Job security A cog in the machine Knowing Employer Standard training programs Traditional compensation package Routine jobs Limited information and authority

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. 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. Many of today's organizations use virtual recruiting, including social media such as Twitter, Weibo, LinkedIn, and Facebook. The U.S. Army operates 43 virtual recruiting stations and temporarily shifted to 100 percent virtual recruiting during the COVID-19 pandemic. 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 exchanges his or her services for the opportunity to gain work experience and see whether a particular career is appealing. IGN's Code Foo challenge has been used for nine years to find interns, some of whom are offered full-time jobs with the company.

Blind hiring:

Focuses managers on an applicant's job skills and performance rather than educational credentials, appearance, or prior experience.

Virtual recruiting example

For example, Amazon once recruited MBAs for its management ranks by sending people to campuses of top-ranked U.S. business schools for face-to-face meetings with students. Recently, to increase the diversity of its recruiting efforts, the company scaled back on these campus visits and put a stronger emphasis on virtual recruiting. The management consulting firm A. T. Kearney conducted 43 percent of its college recruiting virtually in 2019 and planned to increase that share to at least 50 percent in 2020.

internship example

For example, Nationwide sends teams of executives to events such as the National Black MBA Association conference and the National Society of Hispanic MBA conference, where Nationwide executives conduct interviews and often hire full-time employees as well as interns on the spot. Nearly half of all interns at Nationwide join the company on a full-time basis at the end of their internships.

Assessing Job Requirements example

For example, to drive success in today's banking industry, Singapore-based DBS Bank identified seven significant skills it wants in employees, as illustrated in Exhibit 12.7. DBS wants all employees to have skills in digital communications, teamwork, risk management, use of digital and collaborative work technologies, people-focused intention, data-driven decision making, and taking a broad digital business view. Not every employee is expected to be an expert in every skill, but DBS wants every employee to have the capacity to develop skills in these areas and adapt them for different aspects of the business.

Selecting

Gamers are the kind of people you give a set of instructions to and they'll just figure it out," said Mike Hetisimer, manager of customer service at Truno, a maker of technology for grocery workers. Hetisimer recently hired three employees who were avid gamers. Companies in all industries are increasingly interested in extracurricular activities such as playing video games that reflect an applicant's ability to learn and adapt. Justin Foehner, a big fan of role-playing games, got a job with General Electric using virtual-reality technology to train robots that inspect oil rigs, nuclear power plants, and other dangerous areas.

Realistic job preview (RJP):

Gives applicants all pertinent and realistic information, both positive and negative, about a job and the organization.

Blind hiring: example

Google, Dolby, and the ad agency Wieden+Kennedy have all used a recruitment platform called GapJumpers, where job candidates complete skills-based challenges tailored to the open position. GapJumpers analyzed data on 1,200 blind tests it performed for clients and found that the method increased the proportion of qualified candidates who are not White, male, and from elite schools from about 20 percent to 60 percent.

Remember This

HR managers must understand and apply a variety of federal laws that prohibit discrimination, establish safety standards, or require organizations to provide certain benefits. Discrimination occurs when hiring and promotion decisions are 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. Nearly a decade ago, the National Labor Relations Board (NLRB) filed its first suit related to social media; it has been involved in a steady stream of social media-related cases since then.

Company Strategy: Find the Right People

HRM planning, job analysis, forecasting, recruiting, selecting

HRM-Related Strategic Issues for Managers

Hiring the right people to become more competitive on a global basis Hiring the right people for improving quality, innovation, and customer service Knowing the right people to retain after mergers, acquisitions, or downsizing Hiring the right people to apply new information technology (IT) to HRM processes All of these strategic decisions determine a company's need for skills and employees

Per SHRM:

Human resource management (HRM) is the process of managing an organization's employees. HRM includes all aspects of people management to effectively meet an organization's goals.

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. Four Seasons Hotels and Resorts takes a strategic approach to HRM, achieving competitive advantage by focusing on hiring, training, motivating, developing, and rewarding frontline employees in ways that encourage them to provide exceptional service. Human capital refers to the economic value of the combined knowledge, experience, skills, and capabilities of employees.

Patient Protection and Affordable Care Act (PPACA) 2010

Imposes a fee on firms with 50 or more employees if the government subsidizes their employees' health care coverage; prevents insurers from denying coverage based on preexisting conditions or charging women more than men.

Employment Law example

In 2016, the governor of Mississippi signed the controversial Mississippi Religious Liberty Accommodations Act, which would allow religious groups and some private businesses to refuse to serve gay customers based on personal faith. In the case of this state law, many corporations and government entities disagreed. Several state, city, and county governments restricted travel by their employees to Mississippi. Companies such as Nissan, Tyson Foods, MGM Resorts, and Toyota, which employ large numbers of people in the state, denounced the new bill, as did the Mississippi Manufacturers Association, the Mississippi Economic Council, and other groups that represent smaller businesses.

Finding the Right People

Jobs characterized by their: Requirements Rewards Individuals characterized by their: Qualifications (KSAOs) Motivation

Strategic Human Resource Management Example

Lowe's 310,000 employees help customers with remodeling, building, and gardening ideas at its 2,002 stores. They cut lumber, blinds, pipe, and chains; thread pipes; assemble items; provide computer project design and landscape garden design; match paint colors; teach how-to clinics; and offer many other services. Managers know that providing superior customer service depends on human capital, so they invest in finding the best people and helping them develop and apply their combined knowledge, skills, experience, and talent.

Realistic job preview (RJP) example:

Nationwide Insurance uses the realistic job preview (RJP) to help reduce turnover among customer service representatives. Nationwide's RJP is an automated video process that asks candidates 10 multiple-choice questions and gives them an opportunity to see what working as a CSR involves. The trial run allows both the applicant and Nationwide's staff to determine whether the job candidate is a good fit for this challenging work environment.

job specification

Outlines the knowledge, skills, education, physical abilities, and other characteristics needed to perform a specific job adequately.

Civil Rights Act, Title VII 1964

Prohibits discrimination in employment on the basis of race, religion, skin color, sex, or national origin.

Equal Pay Act 1963

Prohibits gender-based differences in pay for substantially equal work.

Family and Medical Leave Act (FMLA) 1993

Requires employers to provide up to 12 weeks unpaid leave for childbirth, adoption, or family emergencies.

Affirmative action

Requires that employers take positive steps to guarantee equal employment opportunities for people within protected groups.

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. Types of questions include biographical questions, behavioral questions, and situational or case questions. Behavioral questions ask people to describe how they have performed a certain task or handled a specific problem. Managers can supplement the traditional interview by asking candidates to provide a work sample, which can be a real example of work that the person has produced or a live simulation of the job. One manager hiring salespeople asked candidates to sell him a rotten apple. 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. In a survey of hiring managers, 70 percent said they screen candidate's social media histories, and one-third said they had found discriminatory comments that had caused them not to hire someone

Employer brand:

Similar to a product brand, except that rather than promoting a specific product, its aim is to make an organization seem like a highly desirable place to work.

Termination

Terminations are valuable in maintaining an effective workforce −Poor performing employees can be dismissed Exit interviews can be used to learn about dissatisfaction and reason for departure

360-degree feedback

Uses multiple raters, including self-rating, to appraise employee performance and guide development.

Human capital

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

Human resource planning:

The forecasting of human resource needs and the projected matching of individuals with anticipated job vacancies.

Remember This

The new social contract between employers and employees is based on the notion of employee employability and personal responsibility rather than lifelong employment by an organization. Contract and contingent workers, sometimes referred to as gig workers and the shadow workforce, are employed only on an as-needed basis, and have become a growing part of workforce strategy for many companies. Contingent workers typically are paid less than regular employees and receive no benefits. Alphabet, the parent company of Google, has more contingent workers than regular full-time employees. Some companies are using blind hiring by doing without résumés or by redacting some information on résumés and asking applicants to complete assignments, focusing on the applicant's job skills and performance rather than educational credentials or prior experience. Today's managers are applying artificial intelligence (AI) algorithms for recruiting and selecting employees. An employer brand is similar to a product brand but promotes the organization as a great place to work, rather than promoting a specific product or service. The top three companies on a recent list of "100 Best Workplaces for Millennials" were Ultimate Software, Hilton, and Salesforce.

selection

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.

performance appraisal

The process of observing and evaluating an employee's performance, recording the assessment, and providing feedback.

The Strategic Role of HRM

The strategic approach to HRM recognizes three key elements. First, all managers are involved in managing human resources. Second, employees are viewed as assets. No strategy can be implemented effectively without the right people to put it into action. Employees—not buildings and machinery—give a company its competitive edge. Third, HRM is a matching process, integrating the organization's strategy and goals with the correct approach to managing human capital.

Job analysis

The systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job.

Additional benefits offered to attract and maintain effective workforce example

To attract and keep talented young employees, a growing number of companies, including Hulu, Estée Lauder, First Republic Bank, Kronos, PricewaterhouseCoopers, Peloton, Abbott Laboratories, and Unum Group, are offering financial benefits to help employees with student loan debt. First Republic, for example, pays $100 a month toward an employee's student loan, and the amount increases annually to a maximum of $200 a month until the loan is paid off. Some companies, such as Abbott, match student loan repayments with contributions to a 401(k) plan. Unum Group allows employees to apply the value of unused vacation time to their loan repayments.

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 eight management training centers around the world, including centers in Shanghai, São Paulo, Mumbai, Moscow, and Chicago. 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, sometimes called "rank and yank," are increasingly being criticized because they tend to pit employees against one another rather than promoting cooperation and teamwork. A new approach to performance management has emerged that focuses on engaging and developing employees rather than assessing or rating them. This new approach provides continuous feedback, focuses on shorter-term goals and cross-functional teams, uses multidimensional ratings, relies on objective data, and focuses on developing skills. Employee engagement at IBM increased by 20 percent after the company began using a new performance management system that focused more on feedback than ratings and assessment.

Pay-for-performance

Tying at least a portion of compensation to employee effort and performance. Also called incentive pay. With pay-for-performance, incentives are aligned with the behaviors needed to help the organization achieve its strategic goals. Employees have an incentive to make the company more efficient and profitable because if goals are not met, no bonuses are paid.

Human resource planning begins with several big-picture questions:

What new technologies are emerging, and how will these affect the work system? How much is the volume of the business likely to change in the next five to ten years? What is the turnover rate, and how much turnover, if any, is avoidable? The responses to these questions are used to formulate specific questions pertaining to HR activities, such as the following: What types of engineers will we need, and how many? How many administrative personnel will we need to support the additional engineers? Can we use temporary, part-time, or virtual workers to handle some tasks?

Sexual harassment in the workforce in an important concern of everyone in the workplace. Any incidence of sexual harassment is a violation of the a.Equal Pay Act b.Title VII of the Civil Rights Act c.Occupational Safety and Health Act d.Family and Medial Leave Act

a.Title VII of the Civil Rights Act

Training

an organization's planned efforts to help employees acquire job-related knowledge, skills, abilities, and behaviors, with the goal of applying these on the job

Pay options in a job

cash and stock options?

Company Strategy: Manage Talent

training, development, appraisal

Virtual recruiting

using social media's video and chat features, virtual job fairs, and recruitment software to identify desired candidates

Employment Law

•Equal Employment Opportunity Commission (EEOC) was created to assist organizations and employees in the understanding and enforcement of employment law.

New Social Contract between Employer and Employee

•Fifty years ago, the trend was that employees stayed in the same job in the same company for their entire career - companies rewarded employees' loyalty by offering job stability, a decent wage, and benefits. •Today's workforce is more mobile, less loyal, and more diverse. −The workforce today is, in part, shaped by the gig economy, or the "1099 economy."

Employment Law

•Laws ensure equal opportunity, stop discrimination, and define enforcement agencies