MGT 3200 Chapter 11

major federal employment laws

Equal pay Civil rights Age discrimination Pregancy discrimination Disability discrimination Cant fire if you need time off of work

employee turnover

The loss of employees who choose to leave the company. -Functional turnover -Dysfunctional turnover

downsizing

The planned elimination of jobs in a company. It may actually decrease productivity and lead to loss of skilled workers

performance appraisal

The process of appraising how well employees are doing their jobs.

vestibule training

procedures and equipment similar to those used in actual job are set up in a special area . The trainee is then taught how to perform the job at his or her own pace without disrupting the actual flow of work, making costly mistake, or exposing the trainee and others to dangerous conditions

piecework

pay for each item they produce, and then once you reach the specified number then you receive a pre-determined sum

group incentive plan

pay is based on group performance.

merit pay systems

pay raises and bonuses are based on the merit rating received from their boss.

decisions involved in an effective compensation design include

pay-level (plan) job evaluation pay structure -determines what kind of organization we want to be -you are willing to pay more for what you find adds more value to the company

human resources management process

planning - organizational strategic planning ->HRM environmental scanning -> human resource planning programming -HR activities evaluating - results

resumes

pose a problem because of false data help put the best foot forward

results of HR management process include

productivity quality innovation satisfaction turnover absenteeism health

diversity training

programs that focus on identifying and reducing hidden biases against people with differences and developing the skills needed to manage a diversified workforce

administrative performance appraisal

provide managers with information they need to make salary, promotion, and dismissal decisions; helps employees understand and accept the basis of those decisions -making decision about employee, fire them or give them a raise

training

providing opportunities for employees to develop the job-specific skills, experience, and knowledge they need to do their jobs or improve their current performance

situational questions

question for when you are hiring inexperienced people hypothetical situations where they explain how they would act

job-knowledge questions

questions that are extracted from the exact job the person is being hired for

behavioral questions

questions that ask about what you have actually done in the past

bona fide occupational qualification (BFOQ)

reasonably necessary to the normal operation of that particular business. -could be used when hiring a character for a movie -could be used when you are hiring a baptist pastor so you don't hire a catholic priest

labor surplus

reconciling supply and demand demand<supply Use attrition Lay off employees Transfer employees to other areas

labor deficit

reconciling supply and demand demand>supply Hire new employees Promote current employees to new positions Outsource work to contractors

HR activities include

recruitment selection outplacement training and development performance appraisal compensation

Each employee selection test must address

reliability and validity

stock options

reserved for people higher up in organizations, can purchase stock at a set price, then you can sell it on the stock market for a bunch of money

gainsharing plans

reward employees for increasing productivity or saving money in areas under their direct control

structured interviews

selection technique that involves asking all applicants the same questions and comparing their responses to a standardized set of answers.

talent is rare

skills knowledge & abilities are not equally available to all competitors

Values advocated by HR

strategic ethical legal financial

types of interviews

structured interviews unstructured interviews semi-structured interviews

evaluate the training programs effectiveness

surveys, tests, improved behavior etc.

effective systems

take into account the organization, the position & the individual

team training

teaches employees the skills they need to work together and helps them to interact

aptitude test

testing to see if you have the cognitive ability to do the job

pay structure

the choice of how to price different jobs within the organization

recruitment

the development of a pool of applicants for jobs in an organization—can be internal or external.

employment at will

the legal concept that an employee may be terminated for any reason -employers don't need a specific document for firing

commission

the more you sell the more you make

internal factors

the organization's compensation policy, the worth of each job, and the employee's relative worth, and the employer's ability to pay

programming

the organizations implement specific human resource activities

validation

the process of determining how well a selection test or procedures predict future job performance (want selection methods that can correctly predict people performance)

biographical data

(biodata) surveys about personal background and job background, past behavior is a good indicator of future behavior

work sample test

(performance tests) give you a task is very similar to the exact job that you will be doing at work, measure your ability to perform

group discussion

- small groups of trainees actively discuss specific topics. the instructor may perform the role of discussion leader

getting background information

--Conduct criminal record checks --Ask applicants to sign a waiver to check references, run a background check, or contact people with knowledge of work history --Ask applicants if there is anything they want the company to know --Consider hiring a private investigator

advantages of internal recruiting

--Employers know their employees --Employees know their organization --Employees may be motivated by advancement --Outside recruitment may demoralize employees

termination interview do's

--Give as much warning as possible for mass layoffs --Sit down one on one with the individual in a private office --Complete a termination session within 15 minutes --Be sure the employee hears about his or her termination from a manager, not a colleague

wonderlic test description

--It consists of 50 multiple choice questions to be answered in 12 minutes. --The score is calculated as the number of correct answers given in the allotted time. --A score of 20 is intended to indicate average intelligence (corresponding to an intelligence quotient of 100). --Wonderlic, Inc. claims a score of at least 10 points suggests a person is literate.

termination interview dont's

--Leave room for confusion when firing --Allow time for debate during a termination session --Make personal comments when firing someone --Rush a fired employee offsite unless security is an issue

disadvantages of internal recruiting

--Limited applicant pool --Inhibit a company from changing the nature or goals of the business by bringing in outside candidates

downsizing tips

--Practice is becoming more common to cut costs, occurs during mergers where functions are consolidated and new technologies & business practices replace jobs. --Done appropriately it can make firms more agile. --Can be used to "de-layer" tall organizations --Can be traumatic for an organization & its employees --Should be a last resort—must be done with careful analysis & strategic thinking Must identify and protect talented people

guidelines for conducting layoffs

--Provide clear reasons and explanations for the layoffs. --To avoid laying off employees with critical or irreplaceable skills, knowledge, and expertise, get input from human resources, the legal department, and several levels of management. --Train managers in how to tell employees that they are being laid off (i.e., stay calm; make the meeting short; explain why, but don't be personal; and provide information about immediate concerns such as benefits, finding a new job, and collecting personal goods). --Give employees the bad news early in the day, and try to avoid laying off employees before holidays. --Provide outplacement services and counseling to help laid-off employees find new jobs. --Communicate with employees who have not been laid off to explain how the company and their jobs will change.

applying job analysis, descriptions, specifications

--Used throughout the staffing process to ensure that selection devices and decisions are job-related. --Help companies meet legal requirements that HR decisions are job-related. --Provides the information required by virtually every HR activity --Assists with the essential HR programs (recruitments, training, selection, appraisal, & reward systems). --Helps employers to defend themselves against lawsuits involving employment practices --Helps increase the value added by employees b/c it clarifies what is required to perform effectively.

develop analytical and problem-solving skills

--case studies --coaching and mentoring --group discussions

impart information and knowledge; develop analytical and problem-solving skills; and practice, learn, or change job behaviors

--computer-based learning

conducting the interview

--create a relaxed, non stressful interview atmosphere --review the applicants application form, resume, and other information --allocate enough time to compete the interview without interruption --put the applicant at ease; don't jump right into heavy questioning --tell the applicant what to expect, explain the interview process --obtain job-related information from the applicant by asking those questions prepared for each KSAO --describe the job and the organization to the applicant. applicants need adequate information to make a selection decision about the organization

HR programming

--explain how companies use recruiting to find qualified job applicants --describe the selection technique and procedures that companies use when deciding which applicants should receive job offers --describe how to determine training needs and select the appropriate training methods --discuss how to use performance appraisal to give meaningful performance feedback describe basic compensation strategies

impart information and knowledge

--films and videos - share information, illustrate problems and solutions, and effectively hold trainees attention --lectures - trainees listen to instructors oral presentations --planned readings - trainees read about concepts or ideas attending training

planning the interview

--identify and define the knowledge, skills, abilities, and other (KSAO) characteristics needed for successful job performance --for each essential KSAO, develop key behavioral questions tha will elicit examples of past accomplishments, activities, and performance --for each KSAO, develop a list of things to look for in the applicants responses to key questions

after the interview

--immediately after the interview, review your notes and make sure they are complete --evaluate the applicant on each essential KSAO --determine each applicants probability of success and make a hiring decision

training objectives

--impart information and knowledge --develop analytical and problem-solving skills --practice, learn, or change job behaviors --impart information and knowledge; develop analytical and problem-solving skills; and practice, learn, or change

4 phases of a training program

--needs assessment --training program design --decisions about training methods and location --evaluate the training programs effectiveness

practice, learn, or change job behaviors

--on the job training (OJT) --role-playing --simulations and games --vestibule training

topics to discuss in a performance appraisal feedback session

--overal progress - an analysis of accomplishments and shortcoming --problems encountered in meeting job requirements --opportunities to improve performance --long-range plans and opportunities - for the job and for the individuals career --general discussion of possible plans and goals for the coming year

behavioral observation scale

--understand what the employee is supposed to be doing, and then assess them on that particular job --easier to justify responses because you are looking at specific actions --better performance means better behaviors occur more often

background checks

--used to verify accuracy of information that applicants provide about themselves; e.g. educational institutions etc. --Used to decrease liability for negligent hiring. --Could include social security verification, past employment records, criminal background, credit checks --Internet searches (e.g. Google, LinkedIn, Facebook)

guidelines for performing appraisals

-Base performance standards on job analysis -Communicate performance standards to employees -Evaluate employees on specific performance-related behaviors rather than on a single global or overall measure -Document the performance appraisal process carefully -Use more than one rater -Take legal considerations into account. (only fair if you assess someones performance based on job description, you must communicate what they are responsible for, don't ambush the person, give them time to fix the problem before you rate them)

topics for evaluating

-Dealing with satisfaction, quality and productivity issues -Discuss the four kinds of employee separations -Outplacement is the process of helping people who have been dismissed from the company to regaining employment elsewhere.

external environment

-Evaluation of workforce trends to make projections. -Demographic trends have contributed to a shortage of skilled and highly educated workers—e.g. retiring baby boomer generation -Remedial and training budgets have increased to address these issues. (i.e. the lack of skilled labor)

labor supply forecasts

-How many & what types of employees the organization actually will have. -Estimates the number & quality of its current employees and the available external supply of workers -Derived from the organization's perspective & experience with turnover, terminations, retirements, promotions & transfers.

during feedback managers should provide

-Understanding -Support -Specific and constructive information related to clear goals or behaviors -An opportunity for the employee to respond

frame-of-reference training

-a group of trainees learns how to do performance appraisals by watching a video of an employee at work and then evaluating the person's performance -a trainer shares his or her evaluations, and trainees' evaluations are compared with experts' -expert explains his or her evaluation -process repeated until the differences are minimized

disadvantages of E-learning

-not always the appropriate method - not effective for changing behavior or developing problem- solving skills -require significant investment in technology - many employees find it boring and unengaging

early retirement incentive program (ERIP)

-offer financial benefits to employees to encourage them to retire early. -reduces number of employees, lowers costs, creates new openings

advantages of E-learning

-reduce travel costs - increase productivity - decrease employee stress

subjective performance measures

-require that someone judge or assess a worker's performance -Behavioral appraisals focus on observable aspects of performance -Trait appraisal involves judgments about employee performance on the possession of a trait such as initiative, leadership & attitude.

employment separation

A broad term covering the loss of an employee for any reason. anytime an employee leaves for any reason

difficult to imitate

A group of well-chosen, motivated people is difficult to imitate; e.g. SW Air

job analysis

A purposeful, systematic process for collecting information on the important work-related aspects of a job. Is a tool for determining what is done on a given job & what should be done on that job. --Work activities --Tools and equipment used to do to the job --Context in which the job is performed --The personnel requirements for performing the job

human resource management involves

Attracting Talent Maintaining a well-trained, highly motivated and loyal workforce Managing diversity Devising effective compensation systems Managing layoffs Containing health care & pension costs

advantages of external recruiting

Brings in new blood Can inspire motivation Sources of outside applicants include job boards, company web sites, employee referrals, newspaper ads & college campus recruiting.

labor demand forecasts

Determining how many and what type of people are needed. Derived from organizational plans Can be the most difficult part of HR Planning

topics to avoid in an interview

Children Age Disabilities Physical characteristics Name Citizenship Lawsuits Arrest records Smoking AIDS/HIV

pay-structure decisions

Concerned with internal pay distribution

HR planning

Explain how different employment laws affect human resource practice How do labor supply & demand impact HR? Performing job analysis & its impact.

federal employment laws

General effect of the laws—employers may not discriminate in employment decisions based on sex, age, religion, color, national origin, race, disability.

terminating employees

In most situations, firing should not be the first option. Employees should be fired only for a good reason (wrongful discharge). Employees should always be fired in private

who should do the appraisal

Managers & supervisors Peers & team members Subordinates Internal & external customers Self -appraisal A 360 degree appraisal involves feedback from all individuals involved with the employee—creates a complete picture.

disadvantages of external recruiting

More difficult to do Adjustment & orientation time is longer Morale problems can develop among those employees within the organization who feel qualified for the job

optional benefits

Pension plans Hospital insurance (for now!) 401K plans Retirement programs

types of pay-variability decisions

Piecework commission Profit sharing Employee stock ownership plans (ESOP) Stock options

effective interviews

Problems with interviews can be overcome following these steps: --Carefully train interviewers --A systematic plan for the interview should be in place including physical space & required information --Put the applicant at ease --Facts obtained should be recorded immediately --Evaluate how effective the interviews are at obtaining quality employees.

external recruiting

Process of developing a pool of qualified job applicants from outside the company. Advertising Employee referrals Walk-ins Outside organizations employment services Special events Internet job sites

improving performance reviews

Separate developmental feedback from administrative feedback Performance appraisal feedback sessions should be based on employee self-appraisals What people do with the feedback matters; it helps if people discuss their performance feedback with others, and discuss it with people who provided it

structured interview questions

Situational questions Behavioral questions Background questions Job -knowledge questions

selection tests

Specific ability tests Cognitive ability tests Biographical data (biodata) Work sample tests (performance tests) Assessment centers in-basket exercise Leaderless group discussion

HR correlation

Studies have shown that effective HR correlates to higher stock market values of companies. Employees can be an organization's most valuable resource. HR & Strategy decisions must be linked through staffing decisions, benefits and other methods

development

Teaching managers and professional employees broad skills needed for their present & future jobs (may not be organization specific).

pay-variability decisions

The extent to which employees' pay varies with individual and company performance

compensation

The financial and nonfinancial rewards that organizations give employees in exchange for their work.

benefits required by law

Worker's compensation Social security Unemployment insurance Medical insurance

individual incentive plan

a plan to compare a worker's performance against an objective standard, with pay determined by the employees performance

wonderlic cognitive ability test

a popular group intelligence test used to assess the aptitude of prospective employees for learning and problem-solving in a range of occupations.

job specification

a summary of the qualifications needed to successfully perform a job; describes the skills, knowledge, abilities, an other characteristics needed to do it.

job description

a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job; tells about the job itself

Types of feedback

administrative developmental

tools for selection

application forms resumes interviews references background checks

validity

assess the accuracy of the selection test.

types of training in organizations

orientation team training diversity training management training

unstructured interviews

nondirective selection technique where the interviewer asks different interviewees different questions

evaluating training

can be done four different ways: reactions learning behavior results -assess these topics in order to evaluate the training and how well it worked and if it accomplished what it was supposed to do

decisions about training methods and location

can be on or off site

reward systems

can serve the strategic purposes of attracting, motivating & retraining people.

special events

career services, conferences

case studies

cases are analyzed and discussed in small groups. the cases present specific problem or decision, and trainees develop methods for solving the problem or making the decision

external factors

conditions of the labor market, area wage rates, the cost of living, the use of collective bargaining (union negotiations) and legal requirements.

reliability

consistency of test scores over item and across alternative measurements

employment references

contacting previous employers or coworkers to learn more about the candidate

voluntary separation

occurs when employees decide to quit or retire.

pay-level plan

decisions about whether to pay workers at a level above, below, or at current market wages.

human resource planning includes

demand forecasts internal labor supply external labor supply job analysis

evaluating

determine whether human resources are producing the results needed to contribute to the organization's business plan.

job evaluation

determines the worth of each job by determining market value of skills required to perform it; (different rates for jobs of similar worth within the same job family)

termination interviews

discussion between a manager & an employee about the employee's dismissal.

termination

dismissal of employees for poor performance or other reasons

coaching and mentoring

done by managers: involves informal advice, suggestions, and guidance. this method is helpful for reinforcing other kinds of training and for trainees who benefit form support and personal encouragement

how organizations terminate employees

downsizing termination employment at will termination interviews

involuntary separation

occurs when employers decide to terminate or lay off employees

profit sharing

employees received a portion over and above regular compensation when company does well

phased retirement

employees transition to retirement by working reduced hours before completely retiring

in-backet exercise

example of an email that you received from a customer while you were manager the people at the assessment center evaluate and grade your response

simulations and games

experiential exercises place trainees in realistic job-related situations and give them the opportunity to experience a job-related condition in a relatively low-cost setting. the trainee benefits from hands-on experience before actually performing the job, where mistakes may be more costly

orientation

familiarizes the new employees with their jobs, work units, and the organization in general

360 degree feedback

feedback comes from four sources: the boss, subordinates, peers and coworkers, and the employees themselves

management training

focuses on improving manager's people skills

types of group incentive plans

gainsharing plans profit-sharing plans merit pay systems

internet job sites

online sources with job posting

employee stock ownership plans

give employees shares of the company, motivates the workers since if organization are successful then you will be able to sell the shares later for more

Types of subjective performance scales

graphic rating scale behavioral observation scale

employee benefit plans

have been getting more attention and currently make up a far greater percentage of the total payroll than in past decades. -most companies biggest cost is labor cost, the benefits given to workers

strategic HR management

helps create competitive advantage because: people create value talent is rare difficult to imitate people can be organized for success

types of pay-structure decisions

hierarchical pay structures compressed pay structures

cognitive ability test

highly predictive of job performance in all areas, higher of this ability leads to higher success at job, good at learning new things

outside organization

hiring a company, hiring a head hunter

employment services

hiring temps after they work for the company for a while

behavior

how much employees actually changed their on-the-job behavior because of training

learning

how much employees improved their knowledge or skills

results

how much training improved job performance, such as increased sales or quality, or decreased costs

reactions

how satisfied trainees were with the program

semi-structured interviews

hybrid of structured and unstructured interviews

continual improvement

increases both personal & organizational effectiveness occurs because of training and development

types of incentives

individual incentive plan group incentive plan

computer based learning

interactive videos, software, CD_ROMS, personal computers, teleconferencing, and the internet may be combined to present multimedia-based training

designing an appropriate pay plan depends on

internal factors external factors

types of employment separation

involuntary separation voluntary separation

hierarchical pay structures

involve big differences from one pay level to another

360 degree appraisal

involves feedback from all individuals involved with the employee—creates a complete picture.

three stages of HR management

involves getting the right number of qualified people into the right job at the right time planning programming evaluating

results of job analysis

job description job specification

HRM environmental scanning includes

labor markets technology legislation competition economy

planning

managers must know the organization's business plans to make sure they have the right number & kind of people

application forms

may only ask for valid, job-related information

objective performance measures

measures of performance that are easily and directly counted or quantified (output, scrap, sales, etc)

graphic rating scale

most common type of measure easy to put together but susceptible to error not much information that is driving the decision to pick the number

on-the-job training (OJT)

new employees are assigned experienced employees. the trainee learns by watching the experienced employee perform the job and eventually by working alongside the experienced employee. gradually, the trainee is left on his or her own to perform the job

internal recruiting

the process of developing a pool of qualified job applicants from people who already work within the company; i.e. considering current employees for promotions & transfers --job posting --career path

human resources management

the process of finding, developing, and keeping the right people to form a qualified work force and is one of the most difficult and important of all management tasks.

selection

the process of gathering information about job applicants to decide who should be offered a job It is a set of methods used to make decisions about whom to hire. (occurs after recruitment)

needs assessment

the process of identifying and prioritizing the learning needs of employees (i.e., the jobs, people and departments that need training)

people create value

they can lower costs, provide something unique to customers etc.

role-playing

trainees assume job-related roles and practice new behaviors by acting out what they would do in job-related situations

training program design

training objectives & content are established from the needs assessment

compressed pay structures

typically have fewer pay levels and smaller differences in pay between levels. - idea is that there will be higher levels of cooperation because everyone feels equal because they're all getting paid about the same

developmental performance appraisal

use information to identify & plan training, experience or other improvement that employees require. -assess the situation to help employee improve

profit-sharing plans

usually implemented in the division organization as a whole, although some incentives may still be tailored to unit performance

people can be organized for success

when properly put together, teams can be deployed quickly.