Management - Chapter 12
Activities or practices that define the desired characteristics of applicants for specific jobs; sometimes called talent acquisition.
Recruiting
occurs when hiring and promotion decisions are made based on criteria that are not job-relevant; for example, refusing to hire a black applicant for a job that he is qualified to fill and paying a woman a lower wage than a man for the same work
Discrimination
Employee in the New Contract
Employability; personal responsibility Partner in business improvement Learning; skill development
Selection: A test given to employees to evaluate their abilities; can include cognitive ability tests, physical ability tests, personality inventories, and other assessments.
Employment tests Cognitive ability tests Physical ability tests Personality tests Other tests
Following selection, the next goal of HRM is to ____________ into an effective workforce.
develop employees Key development activities include training and performance appraisal.
Recruiting Assessing Jobs Outlines the knowledge, skills, education, physical abilities, and other characteristics needed to perform a specific job adequately.
job specification
All monetary payments and all nonmonetary goods or benefits used to reward employees.
compensation
Benefits ________allow employees to select benefits for themselves
Cafeteria-plan benefits packages
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, 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?
The strategic approach to HRM recognizes three key elements. What are they?
1. All managers are involved in managing human resources. 2. 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. 3. Third, HRM is a matching process, integrating the organization's strategy and goals with the correct approach to managing human capital.
What are the three primary goals of HRM?
1. Find the Right People - HRM planning - Job analysis - Forecasting - Recruiting - Selecting 2. Manage Talent - Training - Development - Appraisal 3. Maintain and Effective Workforce - Wages and salary - Benefits - Terminations
Process of finding the right people
1. Human resource planning, in which managers or HRM professionals predict the need for new employees based on the types of vacancies that exist -Retirements -Growth -Resignation 2. Use recruiting procedures to communicate with potential applicants. -Want ads -Headhunters -Internet 3. select from the applicants those persons believed to be the best potential contributors to the organization. -Application -Interview -Tests 4. the new employees are welcomed into the organization.
Which Approach to Assessing Performance Accurately is this? a process that uses multiple raters, including self-rating, as a way to increase awareness of strengths and weaknesses and guide employee development. Members of the appraisal group may include supervisors, coworkers, and customers, as well as the individual, thus providing a holistic view of the employee's performance.
360-degree feedback When used appropriately, 360-degree feedback can lead to a more valid assessment of performance as well as identify greater development opportunities for employees.
Assessing Performance Accurately What are two popular approaches to assessing performance?
360-degree feedback and the performance review ranking system.
requires that an employer take positive steps to guarantee equal employment opportunities for people within protected groups.
Affirmative action When discrimination is found, remedies include providing back pay and taking affirmative action.
Benefits
An effective rewards package requires more than money. Although salary is an important component, benefits are equally important.
Which Innovative HR Practice is this? 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.
Branding the Company as an Employer of Choice employer brand
____________is an important part of HRM because it helps to attract and retain talented workers.
Developing an effective reward system
Federal Law Year Provisions Equal Opportunity/ Discrimination Laws
Civil Rights Act (1991) - Provides compensation for intentional Discrimination Americans with Disabilities Act (1990) - Prohibits discrimination against qualified individuals by employers on the basis of disability Vocational Rehabilitation Act (1972) - Prohibits discrimination based on physical or mental disability and requires that employees be informed about affirmative action plans. Age Discrimination in Employment Act (ADEA) (1967) - Prohibits age discrimination and restricts mandatory retirement. Civil Rights Act, Title VII (1964) - Prohibits discrimination in employment on the basis of race, religion, skin color, sex, or national origin.
Selection Which Employment Test is this? measure an applicant's thinking, reasoning, verbal, and mathematical abilities. IQ tests, for example, have been found to be the most consistent predictor of good performance across a variety of jobs because a high IQ shows a candidate's ability to learn.
Cognitive ability tests
Which type of Training and Development is this? an 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.
Corporate universities One well-known corporate university is Hamburger University, the McDonald's worldwide training center. This institution is so well respected that its curriculum is recognized by the American Council on Education, so employees can actually earn college credits.
Employer in the New Contract
Creative development opportunities Lateral career moves; incentive compensation Challenging assignments Information and resources; decision-making authority
teaching people broader skills that are not only useful in their present jobs but also prepare them for greater responsibilities in future jobs.
Development
Recruiting Assessing obs The systematic process of gathering and interpreting information about the essential duties, tasks, and responsibilities of a job.
Job analysis
Compensation/ Benefits Laws
Health Insurance Portability and Accountability Act (HIPAA) (1996) - Allows employees to switch health insurance plans when changing jobs and get the new coverage regardless of preexisting health conditions; prohibits group plans from dropping a sick employee. Family and Medical Leave Act (1993) - Requires employers to provide up to 12 weeks unpaid leave for childbirth, adoption, or family emergencies. Equal Pay Act (1963) Prohibits sex differences in pay for substantially equal work.
What is one of the most urgent concerns for today's organizations.
Hiring and keeping high-quality employees with the right set of skills.
Some current strategic issues of particular concern to managers include the following:
Hiring the right people: -to become more competitive on a global basis -for improving quality, innovation, and customer service -to retain after mergers, acquisitions, or downsizing - to apply new information technology (IT) for mobile business All of these strategic decisions determine a company's need for skills and employees.
What is the design and application of formal systems in an organization to ensure the effective and efficient use of human talent to accomplish organizational goals
Human resource management (HRM)
Maintaining an Effective Workforce
Maintenance of the current workforce involves compensation, wage and salary systems, benefits, and (occasionally) termination.
The forecasting of human resource needs and the projected matching of individuals with anticipated job vacancies.
Human resource planning
Wage and Salary Systems
Ideally, management's strategy for the organization should be a critical determinant of the features and operations of the pay system. If Macy's sales increase above the company plan, top executives can earn higher bonuses.
Recruiting Methods has two major advantages: It is less costly than an external search, and it generates higher employee commitment, development, and satisfaction because it offers opportunities for career advancement to employees rather than outsiders.
Internal Recruiting (Promote from within)
HR managers must stay on top of legal and regulatory environment
It is critically important that managers know and apply a variety of federal laws that have been passed to ensure equal employment opportunity (EEO). The point of the laws is to stop discriminatory practices that are unfair to specific groups and to define enforcement agencies for these laws.
Compensation Equity Which Approach to compensation equity is this? The process of determining the value of jobs within an organization through an examination of job content.
Job evaluation Job evaluation techniques enable managers to compare similar and dissimilar jobs and to determine internally equitable pay rates—that is, pay rates that employees believe are fair compared to those for other jobs in the organization.
Employee in the old contract
Job security A cog in the machine Knowing
based on the concept of employability rather than lifetime employment
New social contract
Types of Training and Development
On-the-job training Social learning Corporate universities Promotion from within Mentoring and coaching
Which type of Training and Development is this? 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.
On-the-job training (OJT) -The most common type of training. -When implemented well, OJT is considered the fastest and most effective means of facilitating learning in the workplace
Selection: Online Checks
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. Many states have passed laws making it illegal to ask job applicants for their social media passwords.
Which type of Training and Development is this? provide people more challenging assignments, prescribe new responsibilities, and help employees grow by expanding and developing their abilities.
Promotion from within. A maid has been promoted to head housekeeper, a wine waitress to restaurant head, and a student worker to deputy manager.
Health/Safety Laws
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. Consolidated Omnibus Budget Reconciliation Act (COBRA) 1985 - Requires continued health insurance coverage (paid by employee) following termination. Occupational Safety and Health Act (OSHA) 1970 Establishes mandatory safety and health standards in organizations.
refers to observing and assessing employee performance, recording the assessment, and providing feedback to the employee.
Performance appraisal Managers give feedback and praise concerning the acceptable elements of the employee's performance and also describe performance areas that need improvement.
Which Approach to Assessing Performance Accurately is this? This method is increasingly controversial because it essentially evaluates employees by pitting them against one another. As most commonly used, these systems rank employees according to their relative performance: 20 percent would be placed in the top group of performers; 70 percent have to be ranked in the middle; and 10 percent are ranked at the bottom. The bottom tier are given a set period of time to improve their performance, and if they don't improve, they are fired.
Performance review ranking system -sometimes referred to as a forced ranking system, stack ranking, or "rank and yank." The idea behind the forced ranking of employees is that everyone will be motivated to improve performance. A performance ranking system forces reluctant managers to make difficult decisions and identify the best and worst performers, and proponents say it can create and sustain a high-performance culture in which people continuously improve.
The Role and Value of Human Capital Investments
Revenue Growth, Return on Invested Capital, Return on Equity Business Results ^ ^ Productivity, Quality, Innovation, Customer Service Key Performance Drivers ^ ^ Career Development, Human Capital Strategy, Recruiting, Rewards and Recognition, Performance Appraisal, Workforce Planning Human Capital Processes
Wage and Salary Systems Which Approach to employee compensation is this? Employees with higher skill levels receive higher pay than those with lower skill levels.
Skill-based pay systems Also called competency-based pay increasingly popular in both large and small companies. 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.
Which type of Training and Development is this? means learning informally from others by using social media tools, including mobile technologies, social media, wikis and blogs, virtual games, and so forth.
Social Learning The majority of organizational learning occurs through informal rather than formal channels, so managers are supporting the use of social media technology for learning in day-to-day work.Footnote
Organizations are required by law to provide some benefits, such as
Social Security, unemployment compensation, and workers' compensation. Other types of benefits, such as vacations and things such as onsite fitness centers or educational reimbursements, are not required by law but are provided by organizations to attract and maintain an effective workforce.
Employer in the Old Contract
Standard training programs Traditional compensation package Routine jobs Limited information and authority
Performance Evaluation Errors
Stereotyping Halo Effect
Selection: Interviews: An interview that uses a set of standardized questions that are asked of every applicant so comparisons can be made easily.
Structured interviews
_____________ has emerged as a central topic of concern not only for human resource managers but for all managers searching for ways to keep their organizations thriving in the fast-changing, competitive environment of the early twenty-first century.
Talent management
____________ created by the Civil Rights Act of 1964. Initiates investigations in response to complaints concerning discrimination.
The Equal Employment Opportunity Commission (EEOC)
Termination
The value of termination for maintaining an effective workforce is twofold. Productive employees often resent disruptive, low-performing employees who are allowed to stay with the company and receive pay and benefits comparable to theirs.
What is The Strategic Role of HRM
To Drive Organizational Performance
teaching people how to perform tasks related to their present jobs
Training
Finding the Right People
Using the matching model, the organization and the individual attempt to match the needs, interests, and values that they offer each other
Compensation Equity
Whether the organization uses job-based pay or skill-based pay, good managers strive to maintain a sense of fairness and equity within the pay structure and thereby fortify employee morale.
One of the biggest talent management mistakes, according to management expert Ram Charan, is the failure to provide__________
candid performance assessments that focus on development needs.
Which Innovative HR Practice is this? buying an early-stage start-up (and usually shutting it down) in order to obtain the creative talent.
Yahoo acquired 52 start-ups in less than three years, adding about 3,000 acqui-hires.
Selection: A selection device that collects information about the applicant's education, previous work experience, and other background characteristics.
application form Avoid irrelevant questions Avoid questions with adverse impact
EEO (Equal Employment Opportunity) Legislation attempts to.....
balance the pay given to men and women; provide employment opportunities without regard to race, religion, national origin, and gender; ensure fair treatment for employees of all ages; and avoid discrimination against disabled individuals.
Selection Interviews: ask people to describe how they have performed a certain task or handled a particular problem
behavioral questions
What is this approach that is used to overcome performance evaluation errors? A performance evaluation technique that relates an employee's performance to specific job-related incidents.
behaviorally anchored rating scale (BARS) Each job performance scale is anchored with specific behavioral statements that describe varying degrees of performance. By relating employee performance to specific incidents, raters can more accurately evaluate an employee's performance. Good performance is represented by a 4 or 5 on the scale, and unacceptable performance by a 1 or 2. If a production supervisor's job has eight dimensions, the total performance evaluation will be the sum of the scores for each of eight scales.
Selection: Interviews: ask about the person's previous life and work experiences
biographical questions
Which Innovative HR Practice is this? Focuses managers on an applicant's job skills and performance rather than educational credentials, appearance, or prior experience.
blind hiring With blind hiring, people are usually asked to complete a project or assignment that relates to the type of work they'll be doing if hired. Proponents of blind hiring say it contributes to better, more diverse hiring.
A discussion conducted with departing employees to determine reasons for their departure and learn about potential problems in the organization.
exit interview
Recruiting Methods recruiting newcomers from outside the organization—is advantageous. Applicants are provided by a variety of outside sources, including advertising, state employment services, online job boards and social media, private employment agencies (headhunters), job fairs, and employee referrals.
external recruiting
Selection Interviews: test job candidates' ability to handle problems, cope with change, think on their feet, and work well with others.
extreme interviewing
Which Innovative HR Practice is this? Rather than spending weeks making hiring decisions, companies such as Return Path Inc., Chipotle, and AppDynamics are using fast track hiring to bring on new employees in a matter of days or even hours.
fast track hiring
Managers around the world often cite ___________ as the top factor in maintaining competitive success, which reflects the critical role of managing talent.
human capital The economic value of the combined knowledge, experience, skills, and capabilities of employees.
Recruiting Basic building blocks of HRM include:
job analysis, job descriptions, and job specifications.
Recruiting Assessing Jobs A concise summary of the specific tasks and responsibilities of a position.
job description
Wage and Salary Systems Which Approach to employee compensation is this? Linking compensation to the specific tasks an employee performs.
job-based pay The most common approach to employee compensation job-based pay may fail to reward the type of learning behavior needed for the organization to adapt and survive in a turbulent environment. these systems reinforce an emphasis on organizational hierarchy and centralized decision making and control, which are inconsistent with the growing emphasis on employee participation and increased responsibility.
A human resources (HR) approach in which the organization and the individual attempt to match each other's needs, interests, and values.
matching model
Selection Interviews: A conversation where 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.
nondirective interview
Selection Interviews: An interview in which the candidate meets with several interviewers who take turns asking questions.
panel interviews
Organization develop compensation plans based on a ____________ to raise productivity and cut labor costs in a competitive global environment
pay-for-performance standard 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. Employees have an incentive to make the company more efficient and profitable because if goals are not met, no bonuses are paid.
Selection Which Employment Test is this? assess such characteristics as openness to learning, agreeableness, conscientiousness, creativity, and emotional stability. In addition, companies look for characteristics that match the needs of the particular job so that there is a good fit.
personality tests
Recruiting Gives applicants all pertinent and realistic information, both positive and negative, about a job and the organization.
realistic job previews (RJPs)
Training and development programs
represent a planned effort by an organization to facilitate employees' learning of job-related skills and behaviors.
Over the past 15 years, most HR managers have used the term ___________ rather than compensation, to include a broad range of rewards such as wages and salaries, incentive payments, bonuses, and benefits such as health insurance, paid vacations, or other benefits.
rewards or total rewards
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.
selection
Selection Interviews: require people to describe how they might handle a hypothetical situation.
situational or case questions
Which type of Performance Evaluation Error is this? which occurs when a rater places an employee into a class or category based on one or a few traits or characteristics—for example, stereotyping an older worker as slower and more difficult to train.
stereotyping
a company's reward system has an impact on ___________
strategic performance. HR managers design the pay and benefits systems to fit company strategy and to provide compensation equity.
Compensation Equity Which Approach to compensation equity is this? A questionnaire that shows what other organizations pay incumbents in jobs that match a sample of key jobs selected by the organization.
wage and salary surveys