Principles of Management: Chapter 11; Managing Human Resource Systems

You've recently accepted the job of HR director at a small waste management company. After getting acquainted with most of the employees, you decide to review the company's performance management system. Your assistant brings you the form shown in the following image. Instructions: Please rate the employee's performance in each of the following areas. Work Quality Work Quantity Teamwork Poor Excellent 1 2 3 4 1: This form tells you that the waste management company uses a: A: 360-degree feedback appraisal process B: Graphic rating scale C: Behavioral observation scale 2: This form is likely to be: A: Effective B: Ineffective

1: B: Graphic rating scale 2: B: Ineffective

PERFORMANCE REPORT: This report summarizes the ratings* given to you by your manager (MGR), peers (PEER), and direct reports (DR). 1. Employee completes work before deadlines. MGR = 4.5, PEER = 4.0, DR = 3.02. Employee offers to help team with work. MGR = 4.0, PEER = 4.0, DR = 4.03. Employee annoys and irritates coworkers. MGR = 2.5, PEER = 2.0, DR = 3.5 * Ratings based on a scale where 1 = Almost never, and 5 = Almost always. 1: This form tells you that the waste management company uses a: A: Behavioral observation scale B: Graphic rating scale C: 360-degree feedback appraisal process 2: This form is likely to be: A: Effective B: Ineffective

1: C: 360-degree feedback appraisal process 2: A: Effective

You finally landed the job you've been training for your entire career, and now you're the VP of HR for Dajassu Industries. Wanting to know more about the real interviewing practices at Dajassu (as opposed to the interviewing policies in the handbook), you've asked a senior sales manager if you can sit in on an interview. What you hear shocks you. Although there are many good questions being asked, some of the questions are actually illegal! Clearly, something will have to be done about this. 1: Structured interviews make especially good predictors of job success when paired with a ________________ test. A: Biodata B: Personality C: Cognitive Abilities D: Work Sample 2: Developing behavioral questions based on the knowledge, skills, and abilities required on the job is a critical first step in developing________________ interview. A: a management B: a structured C: a job D: an unstructured

1: C: Cognitive Abilities 2: B: a structured Because cognitive abilities tests tend to be highly predictive of job performance, they make especially good predictors of job success. A structured interview gives you information on an applicant's interpersonal skills, so pairing the two selection tools leads to even better selection decisions than using either tool alone. Structured interviews contain standardized questions that are related to the knowledge, skills, and abilities, and other characteristics (KSAOs) needed to do a job; thus, managers must define those KSAOs in order to develop the interview questions. Note that job and management interviews can be either structured or unstructured and that although it is a good idea to have a firm knowledge of KSAOs before starting the interview, it is not mandatory for an unstructured interview.

behavior observation scale (BOS)

rating scales that indicate the frequency with which workers perform specific behaviors that are representative of the job dimensions critical to successful job performance.

Complete the following table by identifying whether each example belongs in a job description or a job specification. 1: Duties Prepares recruitment literature and job advertisements for applicant placement Reviews résumés to identify qualified applicants Conducts interviews to determine applicant's suitability for employment 2: Education Requirements This job requires a four-year college or university degree with major course work in human resources management, business administration, or industrial psychology. Must have at least one course in statistics and one in research methods.

1: Job Description 2: Job specification Job description. Job tasks and duties form the heart of the job description—they specify what employees are expected to do on the job. They are typically listed in order from most to least important based on how much they contribute to overall job performance. The Americans with Disabilities Act requires that employers separate essential job functions from other, less essential duties. This helps employers determine what accommodations are needed and reasonable for employees with disabilities. Job specification. Job skills and knowledge form the heart of the job specification—they are the tools used to do the job. Job specifications also contain information on the amount and kind of experience and the interpersonal skills and competencies that will make the difference between success and failure on the job.

An employer requires a high IQ for shoveling coal, not realizing members of a protected class are being turned away. A: Adverse Impact B: Disparate Treatment

A: Adverse Impact The difference between adverse impact and disparate treatment is whether or not the employer realizes that he or she is discriminating against a protected class. Adverse impact is unintentional - the employer does not know that discrimination is occurring. Disparate treatment is outright discrimination, and the employer typically knows that applicants or employees from non-protected groups are being favored over those from protected groups. Thus, the employer who is not hiring women with school-age children is using disparate treatment. while requiring a high IQ, and in doing so, unintentionally turning away a protected class, is considered to be adverse impact. Intentionally hiring women because they are prettier than men is disparate treatment.

Which of the following are disadvantages of e-learning? Check all that apply. A: Increased training development costs B: Often boring and unengaging for employees C: Less effective for developing problem-solving skills D: Increased travel costs

A: Increased training development costs B: Often boring and unengaging for employees C: Less effective for developing problem-solving skills

Which of the following are advantages of e-learning? Check all that apply. A: Increases workplace productivity B: Lowers training development costs C: Decreases employee stress D: Effectively changes job behaviors

A: Increases workplace productivity C: Decreases employee stress

Scott has asked you for advice about his hiring process. He is concerned that Barcelona is not hiring the right people. He says he doesn't learn much from résumés and says, "I've hired too many people that I thought were amazing in an interview, and they ended up being a dud, and vice versa." What advice would you give? A: Perform a job analysis to clearly identify what skills are needed to perform in each position at Barcelona. B: In addition to posting positions on Craigslist, use job boards like Monster.com to increase the number of applications received. C: Before interviewing an applicant, have him or her complete an online personality test that has been validated for teachers and social workers. D: Only hire people with at least two years' experience in the same position at another restaurant.

A: Perform a job analysis to clearly identify what skills are needed to perform in each position at Barcelona. The best option here is to conduct a job analysis. By interviewing employees and their managers and observing employees, one can learn exactly what tasks are performed in a job and what skills are needed to perform them. Then the work can begin of figuring out how to evaluate job candidates for their ability to perform those tasks. Previous experience at another restaurant may not prepare someone to perform well at Barcelona restaurants, which have a different culture from that of most other restaurants. Scott has a problem with selection, not recruitment, so increasing the number of applications will not help. A test that is valid for selecting teachers and social workers is unlikely to help select good restaurant employees.

Job analysis information should not be collected through: A: The typical salary for a job B: The working conditions associated with a job C: The tools and equipment used on the job D: Work activities and tasks associated with a job

A: The typical salary for a job Job analyses typically collect four types of information: 1. Work activities such as what workers do and how, when, and why they do it 2. The tools and equipment used to do the job 3. The context in which the job is performed, such as the actual working conditions or schedule 4. The personnel requirements for performing the job, meaning the knowledge, skills, and abilities needed to do a job well Although the results of a job analysis may be used to determine how much money someone should be paid, compensation information is not typically collected as part of a job analysis

After expenses, Denise cleared $500,000 last year. She is thinking about giving some of this money to her employees in what is known as ______________ plan. A: a profit sharing B: an employee stock ownership C: a piecework D: a pay-for-performance

A: a profit sharing

Training Methods

Impart Information and Knowledge: Films and videos, Lectures, Planned Readings. Develop Analytical and Problem-solving Skills: Case studies, Coaching and mentoring, Group Discussions. Practice, Learn, or Change Job Behaviors: On-the-job Training, Role-playing, Simulations, virtual reality and games, Vestibule training. Impart Information and Knowledge; Develop Analytical and Problem-Solving Skills; and Practice, Learn, or Change Job Behaviors: Computer Based Learning.

An employer intentionally hires men but not women with school-age children. A: Adverse Impact B: Disparate Treatment

B: Disparate Treatment The difference between adverse impact and disparate treatment is whether or not the employer realizes that he or she is discriminating against a protected class. Adverse impact is unintentional - the employer does not know that discrimination is occurring. Disparate treatment is outright discrimination, and the employer typically knows that applicants or employees from non-protected groups are being favored over those from protected groups. Thus, the employer who is not hiring women with school-age children is using disparate treatment. while requiring a high IQ, and in doing so, unintentionally turning away a protected class, is considered to be adverse impact. Intentionally hiring women because they are prettier than men is disparate treatment.

An employer purposefully hires attractive females rather than males. A: Adverse Impact B: Disparate Treatment

B: Disparate Treatment The difference between adverse impact and disparate treatment is whether or not the employer realizes that he or she is discriminating against a protected class. Adverse impact is unintentional - the employer does not know that discrimination is occurring. Disparate treatment is outright discrimination, and the employer typically knows that applicants or employees from non-protected groups are being favored over those from protected groups. Thus, the employer who is not hiring women with school-age children is using disparate treatment. while requiring a high IQ, and in doing so, unintentionally turning away a protected class, is considered to be adverse impact. Intentionally hiring women because they are prettier than men is disparate treatment.

During the staff meeting, the performance of BJ is discussed. BJ works hard but received a poor customer rating, and the manager is told to "figure it out" or fire BJ. Which of the following would be the best approach to try to improve BJ's performance? A: Have BJ attend a restaurant management course at a local college. B: Provide BJ with 360-degree feedback from customers, coworkers, and managers to give him insight into how his behavior is perceived. C: Implement a profit-sharing plan so that all employees receive the same percentage bonus if the restaurant they work at meets its profitability target. D: Give BJ a raise because his poor performance is probably a symptom of poor motivation, and money is a great motivator.

B: Provide BJ with 360-degree feedback from customers, coworkers, and managers to give him insight into how his behavior is perceived. Of the approaches listed, the most appropriate is to use 360-degree feedback to help BJ gain insight into his strengths and weaknesses as an employee. A 360-degree feedback system is often helpful for development. BJ is a hard worker, so motivation is not the issue. There is no evidence he lacks knowledge of restaurant management—the problem was that he did not make a customer feel welcome. A profit-sharing plan would not emphasize customer service, and in any case, such a group-based compensation plan would not fit Barcelona's culture of individual performance.

In order to win a _____________________ case, the victim must prove that management knew, or should have known, about the problem and did nothing about it. A: Harassment B: Quid Pro Quo C: Hostile Work Environment

C: Hostile Work Environment In a hostile work environment case, the employee must show that the attentions of another person were unwanted or that another person created a sexually charged atmosphere that made it difficult for the victim to work. In addition, the victim must show that management knew (or should have known) about the problem yet did nothing to fix it.

If Denise wants to know how much the jobs in her gym are worth in comparison to each other, she should do: A: A wage and salary survey B: A job description analysis C: Job evaluations D: A job specification analysis

C: Job evaluations

If Denise decides to pay above market wages, she will find that she: A: Loses employees to turnover B: Increases the gym's overall costs C: Decreases the profitability of the gym D: Attracts and keeps better employees

D: Attracts and keeps better employees

Denise's current approach to employee compensation is a ___________ pay structure. A: piecework B: performance based C: compressed D: hierarchical

D: hierarchical

A student is paired with an experienced florist who offers informal advice, suggestions, and guidance.

Develop analytical and problem-solving skills.

Students are put in small groups and asked to discuss how flower arrangements should differ depending on where they are used, for example, at indoor versus outdoor weddings.

Develop analytical and problem-solving skills.

A nationally recognized floral designer comes in to talk to the students about the best methods for conditioning flowers.

Impart information and knowledge.

Students read The Encyclopedia of Flower Arranging by Rona Coleman and Sylvia Pepper.

Impart information and knowledge.

The four kinds of questions typically asked in a structured interview are

Hypothetical questions, "What would you do if...?" Behavioral questions, "In your previous jobs, tell me about....?" Background questions, "Tell me about the training you received at....?" Job knowledge questions.

Four reasons for Performance Appraisals

Making administrative decisions (pay increase, promotion, retention, etc), Providing feedback for employee development (performance, developing career plans, etc), Evaluating Human Resource programs (validating selecting systems), Documentation purposes (documenting performance ratings and decisions based on those ratings).

The three basic types of compensation decisions

Pay level (below, above, or at current market wages) Pay variability (the extent to which employees' pay varies with individual and organizational performance. Common pay variability options are piecework, sales commissions, profit sharing, employee stock ownership plans, and stock options.) Pay structure (the extent to which people in the company receive very different levels of pay.) Hierarchical Pay Structures, Compressed pay structures.

Students are put into pairs. One person plays the role of a customer who wants a very specific type of arrangement with out-of-season flowers, and the other person plays the role of the florist who must suggest more suitable materials while still fulfilling the customer's needs.

Practice, learn, or change job behaviors.

Students learn on the job. They are given simple arrangements to complete at first and get more difficult assignments as they master the earlier ones.

Practice, learn, or change job behaviors.

job description

a written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job.

Job specifications

a written summary of the qualifications needed to successfully perform a particular job.

Evaluating Training, Four Methods

Reactions (how satisfied trainees were with the program), Learning (how much employees improved their knowledge or skills), Behavior (how much employees actually changed their on-the-job behavior because of training), Results (How much training improved job performance, such as increased sales or quality, or decreased costs).

Disparate treatment

intentional discrimination that occurs when people are purposely not given the same hiring, promotion, or membership opportunities because of their race, color, sex, sexual orientation, gender identity, age, ethnic group, national origin, or religious beliefs.

structured interviews

interviews in which all applicants are asked the same set of standardized questions, usually including situational, behavioral, background, and job-knowledge questions.

profit sharing

a compensation system in which a company pays a percentage of its profits to employees in addition to their regular compensation.

piecework

a compensation system in which employees are paid a set rate for each item they produce.

commission

a compensation system in which employees earn a percentage of each sale they make.

Employee stock ownership plans (ESOPs)

a compensation system that awards employees shares of company stock in addition to their regular compensation.

Stock options

a compensation system that gives employees the right to purchase shares of stock at a set price, even if the value of the stock increases above that price.

human resource information system (HRIS)

a computerized system for gathering, analyzing, storing, and disseminating information related to the HRM process.

sexual harassment

a form of discrimination in which unwelcome sexual advances, requests for sexual favors, or other verbal or physical conduct of a sexual nature occurs while performing one's job.

Quid pro quo sexual harassment

a form of sexual harassment in which employment outcomes, such as hiring, promotion, or simply keeping one's job, depend on whether an individual submits to sexual harassment

hostile work environment

a form of sexual harassment in which unwelcome and demeaning sexually related behavior creates an intimidating and offensive work environment

Wrongful discharge

a legal doctrine that requires employers to have a job-related reason to terminate employees.

360-degree feedback

a performance appraisal process in which feedback is obtained from the boss, subordinates, peers, and coworkers, and the employees themselves.

Job evaluation

a process that determines the worth of each job in a company by evaluating the market value of the KSAs needed to perform it.

Job analysis

a purposeful, systematic process for collecting information on the important work-related aspects of a job. Typically collects four kinds of information: 1: Work activities, such as what workers do and how, when, and why they do it. 2: The tools and equipment used to do the job. 3: The context in which the job is performed, such as the actual working conditions or schedule. 4: The personnel requirements for performing the job, meaning the knowledge, skills, and abilities needed to do a job well.

four-fifths (or 80 percent) rule

a rule of thumb used by the courts and the EEOC to determine whether there is evidence of adverse impact; a violation of this rule occurs when the impact ratio (calculated by dividing the decision ratio for a protected group by the decision ratio for a nonprotected group) is less than 80 percent, or four-fifths.

Job interviews

a selection tool in which company representatives ask job applicants job-related questions to determine whether they are qualified for the job.

Assessment centers

a series of managerial simulations, graded by trained observers, that are used to determine applicants' capability for managerial work.

personality test

an assessment that measures the extent to which an applicant possesses different kinds of job-related personality dimensions.

bona fide occupational qualification (BFOQ)

an exception in employment law that permits sex, age, religion, and the like to be used when making employment decisions, but only if they are "reasonably necessary to the normal operation of that particular business." BFOQs are strictly monitored by the Equal Employment Opportunity Commission.

unstructured interviews

interviews in which interviewers are free to ask the applicants anything they want. About half as accurate as structured interviews at predicting which job applicant should be hired.

Training

developing the skills, experience, and knowledge employees need to perform their jobs or improve their performance.

phased retirement

employees transition to retirement by working reduced hours over a period of time before completely retiring.

outplacement services

employment-counseling services offered to employees who are losing their jobs because of downsizing.

Biographical data, or biodata

extensive surveys that ask applicants questions about their personal backgrounds and life experiences.

Semistructured interviews

lie between structured and unstructured interviews. A major part of the semistructured interview (perhaps as much as 80%) is based on structured questions, but some time is set aside for unstructured interviewing to allow the interviewer to probe into ambiguous or missing information uncovered during the structured portion of the interview.

Employee turnover

loss of employees who voluntarily choose to leave the company.

dysfunctional turnover

loss of high-performing employees who voluntarily choose to leave a company.

Functional turnover

loss of poor-performing employees who voluntarily choose to leave a company.

Objective performance measures

measures of job performance that are easily and directly counted or quantified. Common objective performance measures are output, scrap, waste, sales, customer complaints, and rejection rates.

Subjective performance measures

measures of job performance that require someone to judge or assess a worker's performance. Most common is the Graphic Rating Scale (GRS).

Background checks

procedures used to verify the truthfulness and accuracy of information that applicants provide about themselves and to uncover negative, job-related background information not provided by applicants.

Early retirement incentive programs (ERIPs)

programs that offer financial benefits to employees to encourage them to retire early.

employment references

sources such as previous employers or coworkers who can provide job-related information about job candidates.

Specific ability tests, or aptitude tests

tests that measure the extent to which an applicant possesses the particular kind of ability needed to do a job well.

Cognitive ability tests

tests that measure the extent to which applicants have abilities in perceptual speed, verbal comprehension, numerical aptitude, general reasoning, and spatial aptitude.

Work sample tests, or performance tests

tests that require applicants to perform tasks that are actually done on the job.

Compensation

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

Downsizing

the planned elimination of jobs in a company.

Performance appraisal

the process of assessing how well employees are doing their jobs

Validation

the process of determining how well a selection test or procedure predicts future job performance; the better or more accurate the prediction of future job performance, the more valid a test is said to be.

External recruiting

the process of developing a pool of qualified job applicants from outside the company.

Internal recruiting

the process of developing a pool of qualified job applicants from people who already work in the company.

Recruiting

the process of developing a pool of qualified job applicants.

Human resource management (HRM)

the process of finding, developing, and keeping the right people to form a qualified workforce.

Selection

the process of gathering information about job applicants to decide who should be offered a job.

Needs assessment

the process of identifying and prioritizing the learning needs of employees.

Employee separation

the voluntary or involuntary loss of an employee. Involuntary = employers lay off employees Voluntary = employees quit or retire.

rater training

training performance appraisal raters in how to avoid rating errors and increase rating accuracy. The most effective is frame-of-reference training

Adverse impact

unintentional discrimination that occurs when members of a particular race, sex, sexual orientation, gender identity, or ethnic group are unintentionally harmed or disadvantaged because they are hired, promoted, or trained (or any other employment decision) at substantially lower rates than others.