Copyright ©2011 by Cengage Learning. All rights reserved 1 Chapter 11 Managing Human Resource Systems Designed & Prepared by B-books, Ltd. MGMT3 Chuck

1Copyright ©2011 by Cengage Learning. All rights reserved

Chapter 11Managing Human Resource

Systems

Designed & Prepared byB-books, Ltd.

MGMT3

Chuck Williams


The Human Resource Management Process

Recruiting

Selection

Attracting QualifiedEmployees

Compensation

Employee Separation

Keeping QualifiedEmployees

Developing QualifiedEmployees

Training

Performance Appraisal


Employment Laws

After reading this section, you should be able to:

1. explain how different employment laws affect human resource practice.


Human Resource Planning

Supply and Demandof

Human Resources

Supply and Demandof

Human Resources

Human ResourceInformation

Systems

Human ResourceInformation

Systems

Beyond the Book


Forecasting Demand and Supply

•Internal forecasts

•External forecasts

•Internal forecasts

•External forecasts

•Direct managerial input

•Best guess

•Statistical / historicalratios

•Direct managerial input

•Best guess

•Statistical / historicalratios

Work ForceForecasting

ForecastingMethods

Beyond the Book


Forecasting Demand and Supply

InternalFactorsInternalFactors

WorkWorkForceForce

ForecastForecast

WorkWorkForceForce

ForecastForecast

ExternalFactors

ExternalFactors

Beyond the Book


Internal Forecast Factors New positions New equipment and

technology Eliminated positions Terminations Retirements Resignations Turnover

Transfers Deaths Promotions Organization’s mission Productivity of current

employees Skills/education of

current employees

Beyond the Book


External Forecast Factors• Demographics of labor

supply

• Geographic population shifts

• Manufacturing-to service-to information-based economy shift

• Economic conditions

Unemployment rate

Labor unions

Availability of applicants

Technological advances

Competitors

Growth of businesses

Beyond the Book


Forecast Methods

DirectManagerial

Input

DirectManagerial

Input

BestGuess

BestGuess

Statistical/Historical Ratios

Statistical/Historical Ratios

Based on projections of cash flows,expenses, or financial measures

Based on projections of cash flows,expenses, or financial measures

Based on managers’ assessment of current head count plus a guess onrelevant internal/external factors

Based on managers’ assessment of current head count plus a guess onrelevant internal/external factors

Based on statistical methods, such asmultiple regression, in combinationwith historical data

Based on statistical methods, such asmultiple regression, in combinationwith historical data

Beyond the Book


Human Resource Information Systems

• Computerized employee information systems use:

• transaction processing• employee self-service• decision support

Beyond the Book


Human Resource Information Systems

HRISHRISWork HistoryWork History

PerformanceAppraisal

PerformanceAppraisal

Personal DataPersonal Data

EducationalData

EducationalData

CompanyEmployment

History

CompanyEmployment

History

Promotion DataPromotion Data

Beyond the Book


Employment Legislation

FederalEmployment

Laws

Adverse Impactand

EmploymentDiscrimination

SexualHarassment

Laws

11


Federal Employment Laws

Equal Pay Act of 1963Equal Pay Act of 1963

Civil Rights Act of 1964Civil Rights Act of 1964

Age Discrimination inEmployment Act of 1967

Age Discrimination inEmployment Act of 1967

Pregnancy DiscriminationAct of 1978

Pregnancy DiscriminationAct of 1978

prohibits unequal pay for males and females doing similar work

prohibits unequal pay for males and females doing similar work

prohibits discrimination on basis ofrace, color, religion, gender, origin

prohibits discrimination on basis ofrace, color, religion, gender, origin

prohibits discrimination against persons age 40 and over

prohibits discrimination against persons age 40 and over

prohibits discrimination in employmentagainst pregnant women

prohibits discrimination in employmentagainst pregnant women

1.11.1


Federal Employment Laws (cont.)

Americans with Disabilities Act of 1990

Americans with Disabilities Act of 1990

Civil Rights Act of 1991Civil Rights Act of 1991

Family & Medical LeaveAct of 1993

Family & Medical LeaveAct of 1993

prohibits discrimination on the basis ofphysical or mental disabilities

prohibits discrimination on the basis ofphysical or mental disabilities

strengthened the Civil Rights Act of 1964strengthened the Civil Rights Act of 1964

permits workers to take up to 12 weeksof unpaid leave for pregnancy, etc.

permits workers to take up to 12 weeksof unpaid leave for pregnancy, etc.

Adapted from Exhibit 11.2Uniformed Services Employment & Reemployment Rights Act

Uniformed Services Employment & Reemployment Rights Act

prohibits discrimination against those serving in the Armed Forces

prohibits discrimination against those serving in the Armed Forces

1.11.1


Adverse Impact and Employment Discrimination

Four-FifthsFour-FifthsRuleRule

Four-FifthsFour-FifthsRuleRule

AdverseAdverseImpactImpact

AdverseAdverseImpactImpact

DisparateDisparateTreatmentTreatment

DisparateDisparateTreatmentTreatment

Intentional discrimination that results in equally qualified people being treated differently

Unintentional discrimination that works to the disadvantage of members of protected groups

Comparison of selection rates of a protected to a nonprotected group to determine if adverse impact has occurred1.21.2


Sexual Harassment

HostileWork

Environment

HostileWork

Environment

QuidPro Quo

QuidPro Quo

Unwelcome and demeaning sexuallyrelated behavior creates an intimidating and offensive work environment

Unwelcome and demeaning sexuallyrelated behavior creates an intimidating and offensive work environment

Employee outcomes depend on whether an individual submits tosexual harassment

Employee outcomes depend on whether an individual submits tosexual harassment

1.31.3


Sexual Harassment

Abercrombie & Fitch paid $50 million to settle a lawsuit that alleged systematic discrimination against Latino, African American, Asian American and female applicants and employees in its employment practices. Shown here is EEOC commissioner Stuart Ishimaru leaving the podium after addressing reporters at a news conference announcing the settlement.

© AP Photo/Ric Francis


Company Responsibilities

Respond immediately to make sure sexual harassment laws are followed

Write a clear, understandable sexual harassment policy

Establish clear reporting procedures

Be in compliance with federal, state, and local sexual harassment laws

1.31.3


Finding Qualified Workers

After reading these sections, you should be able to:

2. explain how companies use recruiting to find qualified job applicants.

3. describe the selection techniques and procedures that companies use when deciding which applicants should receive job offers.


Recruiting

Job Analysisand

Recruiting

Job Analysisand

Recruiting

InternalRecruiting

InternalRecruiting

ExternalRecruiting

ExternalRecruiting

22


Job Analysis and Recruiting

work activities

tools and equipment used to do the job

context in which the job is performed

personnel requirements for performing the job

work activities

tools and equipment used to do the job

context in which the job is performed

personnel requirements for performing the job

Information Collected by a Job Analysis

2.12.1



Job DescriptionJob DescriptionJob DescriptionJob Description Job Job SpecificationSpecification

Job Job SpecificationSpecification

HR SubsystemsHR SubsystemsHR SubsystemsHR Subsystems

RecruitingRecruitingRecruitingRecruiting SelectionSelectionSelectionSelection TrainingTrainingTrainingTraining PerformancePerformanceAppraisalAppraisal

PerformancePerformanceAppraisalAppraisal SeparationSeparationSeparationSeparation

Job AnalysisJob AnalysisJob AnalysisJob Analysis

2.12.1



JobDescription

JobDescription

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

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

JobSpecification

JobSpecification

a written summary of the qualificationsneeded to successfully perform a job

a written summary of the qualificationsneeded to successfully perform a job

2.12.1


Internal Recruiting• A pool of applicants who already

work for the company

• “Promotion from within”

• Improves employee morale and motivation

• Reduces employer time and cost

• Job posting is the procedure for internal advertising

• Career path is a planned sequence of jobs

2.22.2


Methods for External Recruiting

• Advertising

• Employee referrals

• Walk-ins

• Outside organizations

• Employment services

• Special events

• Internet job sites

2.32.3

© Jessica Rinaldi/Reuters/Landov


Beyond the BookCompany Websites: The New Job BoardMany companies are focusing on their own websites, rather than traditional job boards, when searching for prospective employees. This can save the company the cost of advertising on other sites, and on average they are finding the applicants that come through the company web site better qualified. They are also focusing on social media sites like LinkedIn and Facebook. For job seekers, this means expanding their efforts to include every possible resource available.

Source: J. De Avila, “Beyond Job Boards: Targeting the Source”, The Wall Street Journal, 2 July 2009. D1.


Selection

SelectionTests

SelectionTests InterviewsInterviews

Application Formsand Résumés

Application Formsand Résumés

References andBackground Checks

References andBackground Checks

33


Topics Employers Should Avoid

1. Children1. Children

2. Age2. Age

3. Disabilities3. Disabilities

4. Physical Characteristics 4. Physical Characteristics

5. Name5. Name

6. Citizenship6. Citizenship

7. Lawsuits7. Lawsuits

8. Arrest records 8. Arrest records

9. Smoking9. Smoking

10. AIDS/HIV10. AIDS/HIV3.13.1

© S

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References and Background Checks

• References or background checks are not always provided by previous employers

• Making background checks more effective– dig deeper for more information– get permission in writing– document all checks– consider hiring private investigators

3.23.2


Selection Tests

WorkWorkSampleSample

BiographicalBiographicalDataData

PersonalityPersonality

AssessmentAssessmentCentersCenters

CognitiveCognitiveAbilityAbility

SpecificSpecificAbilityAbility

SelectionSelectionTestsTests

3.33.3


Interviews

• Unstructured Interviews– free-flow of questions

• Structured Interviews– interviewer uses standard set of prepared questions

• Semi-structured Interviews– some structure combined with interviewer judgement

3.43.4


Questions in Structured Interviews

Situational QuestionsSituational Questions

Behavioral QuestionsBehavioral Questions

Background QuestionsBackground Questions

Job-Knowledge QuestionsJob-Knowledge Questions

3.43.4


Guidelines for Conducting Effective Structured Interviews

Planning the InterviewPlanning the Interview

• Identify and define the KSAO needed for job

• Develop key behavioral questions for each KSAO

• For each KSAO, develop a list of things to look for in applicant’s responses

KSAO: Knowledge, skills, abilities, and other characteristics 3.43.4



Conducting the InterviewConducting the Interview

• Create a relaxed interview atmosphere

• Review the applicant’s information

• Allocate adequate time

• Put the applicant at ease

• Tell the applicant what to expect

• Obtain job-related information (refer to KSAO)

• Describe the job and organization 3.43.4



After the InterviewAfter the Interview

• Review your notes immediately

• Evaluate the applicant on each KSAO

• Determine each applicant’s probability of success and make a hiring decision

3.43.4


Beyond the BookFinding the “Right People”Here are six key characteristics that help create a good fit

with your company.1. Hire people who fit the company’s core values.2. Look for people who don’t need constant supervision.3. Prospective hires should understand that have

“responsibilities”, not “jobs”.4. Look for people who fulfill their commitments.5. People who are passionate about the company and

their work will make the best fits.6. Look for people who credit factors other than

themselves for success and take personal responsibility for their mistakes.

Source: M. V. Copeland, “Tapping Tech’s beautiful Minds”, Fortune, 12 October 2009. 35-36.


Developing Qualified Workers

After reading these sections, you should be able to:

4. describe how to determine training needs and select the appropriate training methods.

5. discuss how to use performance appraisal to give meaningful performance feedback.


Training

Training Needs

Training Needs

TrainingMethods

TrainingMethods

TrainingEvaluation

TrainingEvaluation

44


Determining Training Needs

ConductingNeeds

Assessments

ConductingNeeds

Assessments

IdentifyPerformanceDeficiencies

IdentifyPerformanceDeficiencies

Test EmployeeSkills and

Knowledge

Test EmployeeSkills and

Knowledge

SurveyEmployers

and Managers

SurveyEmployers

and Managers

Listen toCustomer

Complaints

Listen toCustomer

Complaints

4.14.1


Work Keys Needs Assessment

Step 1Step 1

Step 2Step 2

Step 3Step 3

Job AnalysisJob Analysis

Test Employee SkillsTest Employee Skills

Compare Employee Skillsto Required Skills

Compare Employee Skillsto Required Skills

Beyond the Book


Work Keys Needs Assessment

Beyond the Book


Training Methods

Impart Informationand Knowledge

Impart Informationand Knowledge

Develop Analyticaland Problem-SolvingSkills

Develop Analyticaland Problem-SolvingSkills

Practice, Learn, orChange Job Behaviors

Practice, Learn, orChange Job Behaviors

All of the above

All of the above

• films and videos• lecture• planned readings

• films and videos• lecture• planned readings

• case studies• coaching and mentoring• group discussions

• case studies• coaching and mentoring• group discussions

• on-the-job training• role-playing• simulations and games• vestibule training

• on-the-job training• role-playing• simulations and games• vestibule training

• Computer-based learning• Computer-based learning

4.24.2


Evaluating Training

ReactionsReactions

LearningLearning

BehaviorBehavior

ResultsResults

how satisfied trainees were with the program

how satisfied trainees were with the program

how much employees improvedtheir knowledge or skills

how much employees improvedtheir knowledge or skills

how much employees actually changedtheir on-the-job behavior

how much employees actually changedtheir on-the-job behavior

how much training improvedjob performance

how much training improvedjob performance

4.34.3


Performance Appraisal

MeasuringJob

Performance

MeasuringJob

Performance

SharingPerformance

Feedback

SharingPerformance

Feedback

55


Measuring Job Performance: Common Rating Errors

• Central tendency– all workers are rated as being average

• Halo error– all workers are rated as performing at the same

level in all parts of their jobs

• Leniency error– all workers are rated as performing at a high level

5.15.1


Measuring Job Performance

Improving Job Performance Measurements Improving Job Performance Measurements

Improve Performance Appraisal Measures

Improve Performance Appraisal Measures

TrainPerformance Raters

TrainPerformance Raters

5.15.1


Improving Performance Appraisal Measures

• Objective performance measures– quantifiable outcomes (output, scrap, waste, sales,

customer complaints, or rejection rates)

• Subjective performance measures– trait rating scales– behavioral observation scales (BOS)

5.15.1


Subjective Performance Appraisal Scales

5.15.1


Rater Training

• Teach raters how to avoid errors

• Improve rating accuracy

• Video training and role playing often used

5.15.1


Sharing Performance Feedback

• Managers often fail to effectively give employees performance feedback

• 360-degree feedback– boss, subordinates, peers, and the employee– best for employee development

5.25.2


Performance Feedback

1. Separate developmental feedback from administrative feedback

2. Base performance appraisal feedback sessionson self-appraisals

3. Have people discuss the feedback they received with executive coaches or the peoplewho provided it

1. Separate developmental feedback from administrative feedback

2. Base performance appraisal feedback sessionson self-appraisals

3. Have people discuss the feedback they received with executive coaches or the peoplewho provided it

Recommendations for Sharing Performance Feedback

5.25.2


Performance Feedback

• Overall progress

• Problems encountered in meeting job requirements

• Opportunities to improve performance

• Long-range plans and opportunities

• General discussion of possible plans andgoals for the coming year

• Overall progress

• Problems encountered in meeting job requirements

• Opportunities to improve performance

• Long-range plans and opportunities

• General discussion of possible plans andgoals for the coming year

What to Discuss in Performance Appraisal Feedback Sessions

5.25.2


Keeping Qualified Workers

After reading this section, you should be able to:

6. describe basic compensation strategies and discuss the four kinds of employee separations.


Compensation

CompensationDecisions

CompensationDecisions

EmploymentBenefits

EmploymentBenefits

66


Compensation Decisions

• Job evaluation

• Piecework

• Commission

• Profit sharing

• Employee stock ownership plans

• Stock options

• Hierarchical

• Compressed

PayPayLevelLevel

PayPayVariabilityVariability

PayPayStructureStructure

• Cafeteria plans

• Flexible plans

• Payroll deductions

EmploymentEmploymentBenefitsBenefits

6.16.1

Beyond the Book


Pay-Level Decisions• Job evaluation is used to determine the worth of jobs

– pay the “going rate”

• Should workers be paid at, below, or above current market wage?– Above-market wages attract a larger, more qualified pool of applicants– increases the rate of job acceptance– decreases the time it takes to fill positions

– increases the time that employees stay

6.16.1


Beyond the BookPay Raises in the Recession• Since the end of 2007, pay raises have been among the many cutbacks companies are making to get through the downturn.

• The U.S. Labor Department reported that average pay had increased 2.2% at the end of March 2009, down a full percentage point from a year earlier.

• Analysts, however, estimate that top performing employees received on average 4% raises, compared to 0.2% for lowest-ranking employees.

Source: M. Sanserino, “Pay Raises Are the Smallest In Decades, Surveys Show”, The Wall Street Journal, 21 July 2009. D1.


Pay-Variability Decisions

• Piecework

• Commission

• Profit sharing

• Employee stock ownership plans (ESOPs)

• Stock options

6.16.1


Pay-Structure Decisions

Hierarchical pay structures big differences from one pay level to another work best for independent work

Compressed pay structures fewer pay levels with smaller differences in pay

between pay levels work best for interdependent work

6.16.1


Employment Benefits• Compensation other than direct wages• Employee benefits are legally mandated:

– Social Security– worker’s compensation– unemployment insurance

• Cafeteria benefit plans– employees can select from optional benefits

• Payroll deductions

Beyond the Book


Employee Separations

TerminationsTerminations DownsizingDownsizing

TurnoverTurnoverRetirementsRetirements

6.26.2


Terminating Employees

• Often mismanaged

• Minimize problems in firing employees• firing should not be the first option• firing should be for a good reason

• “employment at will”

• wrongful discharge

6.26.2 ©W

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Downsizing

1. Provide clear reasons for the layoffs.

2. Get information to avoid laying off employees with critical skills.

3. Train managers how to tell employees.

4. Give employees the bad news early in the day.

5. Provide outplacement services and counseling.

6. Communicate with survivors.

6.36.3


Retirement

• offer financial benefits to encourage employees to retire.

• are attractive to many employees.

• are difficult to predict which or how many employees will use the program.

• may cause the company to lose valuable employees.

Early Retirement Incentive Programs…

6.46.4


Employee Turnover

Loss of employees who voluntarily choose to leave the company

Functional turnover (encouraged)• the loss of poor-performing employees

Dysfunctional turnover (discouraged)

• the loss of high performing employees

6.56.5

Documents

Copyright ©2011 by Cengage Learning. All rights reserved 1 Chapter 11 Managing Human Resource Systems Designed & Prepared by B-books, Ltd. MGMT3 Chuck