chapter seven managing human resource systems

1Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved

CHAPTER SEVENManaging HumanResource Systems


What Would You Do?What Would You Do?You are the senior vice president You are the senior vice president of HR at Electronic Arts…of HR at Electronic Arts…

Videogames are the largest and Videogames are the largest and fastest-growing sector fastest-growing sector of the entertainment industryof the entertainment industry

It’s your job to make sure that scarce game industry talent signs with It’s your job to make sure that scarce game industry talent signs with EAEA

You need experienced people, who are both creative and disciplinedYou need experienced people, who are both creative and disciplined

How do you build a pipeline of talent and create a pool of applicants How do you build a pipeline of talent and create a pool of applicants for managerial positions? How do you retain talented people?for managerial positions? How do you retain talented people?


Determining Human Determining Human Resource NeedsResource NeedsAfter reading the next section, you should be able to:

1.1. describe the basic steps involved in human describe the basic steps involved in human resource planning.resource planning.


Employment LegislationEmployment Legislation

FederalEmployment

Laws

Adverse Impactand

EmploymentDiscrimination

SexualHarassment

Laws

1


Federal Employment LawsFederal 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 1967Age Discrimination inEmployment Act of 1967

Pregnancy DiscriminationAct of 1978Pregnancy DiscriminationAct of 1978

Americans with Disabilities Act of 1990Americans with Disabilities Act of 1990

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, originprohibits 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

prohibits discrimination on the basis ofphysical or mental disabilities

prohibits discrimination on the basis ofphysical or mental disabilities

1.1


Federal Employment Laws Federal Employment Laws (cont.)(cont.)

National LaborRelations BoardNational LaborRelations Board

Occupational Safetyand Health ActOccupational Safetyand Health Act

guarantee employees the right toform and join unionsguarantee employees the right toform and join unions

requires employers provide asafe workplace for employeesrequires employers provide asafe workplace for employees

Family & Medical LeaveAct of 1993Family & Medical LeaveAct of 1993

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.

Civil Rights Act of 1991Civil Rights Act of 1991 strengthened the Civil Rights Act of 1964

strengthened the Civil Rights Act of 1964

1.1


Adverse Impact and Adverse Impact and Employment DiscriminationEmployment 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 member of protected groups

Comparison of selection rates of a protected to a nonprotected group, to determine if adverse impact has occurred

1.2


Sexual HarassmentSexual 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

1.3


Common Managerial Common Managerial Mistakes Mistakes in Sexual Harassment Lawsin Sexual Harassment Laws

That the victim and harasser must be of the That the victim and harasser must be of the opposite sexopposite sex

That harassment can only occur between That harassment can only occur between coworkers or supervisors and subordinatescoworkers or supervisors and subordinates

That only victims can file complaintsThat only victims can file complaints

Assuming:

1.3


Company Responsibilities Company Responsibilities

Respond immediately to make sure Respond immediately to make sure sexual harassment laws are sexual harassment laws are followedfollowed

Write a clear, understandable sexual Write a clear, understandable sexual harassment policyharassment policy

Establish clear reporting proceduresEstablish clear reporting procedures Comply with federal, state, and local Comply with federal, state, and local

sexual harassment lawssexual harassment laws

1.3


Finding Qualified WorkersFinding Qualified Workers

After reading the next two sections, you should be able to:

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

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


RecruitingRecruiting

Job Analysisand

Recruiting

Job Analysisand

Recruiting

InternalRecruiting

InternalRecruiting

ExternalRecruiting

ExternalRecruiting

2


Job Analysis and RecruitingJob 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

2.1


Job Analysis and HRMJob Analysis and HRM

Job AnalysisJob AnalysisJob AnalysisJob Analysis

Job DescriptionJob DescriptionJob DescriptionJob Description Job Job SpecificationsSpecifications

Job Job SpecificationsSpecifications

HR SubsystemsHR SubsystemsHR SubsystemsHR Subsystems

RecruitingRecruitingRecruitingRecruiting SelectionSelectionSelectionSelection TrainingTrainingTrainingTraining PerformancePerformanceAppraisalAppraisal

PerformancePerformanceAppraisalAppraisal SeparationSeparationSeparationSeparation

Adapted From Exhibit 12.3

2.1


Job Analysis and RecruitingJob Analysis and Recruiting

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

2.1


Internal RecruitingInternal Recruiting

A pool of applicants who already A pool of applicants who already work for the companywork for the company

““Promotion from within”Promotion from within” Improves employee morale and Improves employee morale and

motivationmotivation Reduces employer time and costReduces employer time and cost Job posting is the procedure for Job posting is the procedure for

internal advertisinginternal advertising Career path is a planned sequence Career path is a planned sequence

of jobsof jobs

2.2


Methods for External Methods for External RecruitingRecruiting

AdvertisingAdvertising Employee referralsEmployee referrals Walk-insWalk-ins Outside organizationsOutside organizations Employment servicesEmployment services Special eventsSpecial events Internet job sitesInternet job sites

2.2


SelectionSelection

SelectionTests

SelectionTests InterviewsInterviews

Application Formsand Résumés

Application Formsand Résumés

References andBackground Checks

References andBackground Checks

3


Topics to Avoid on Application Blanks Topics to Avoid on Application Blanks

and during Selectionand during Selection 1. Children1. Children

2. Age2. Age

3. Disabilities3. Disabilities

4. Physical characteristics 4. Physical characteristics

5. Maiden name5. Maiden name

6. Citizenship6. Citizenship

7. Lawsuits7. Lawsuits

8. Arrest records 8. Arrest records

9. Smoking9. Smoking

10. Medical conditions10. Medical conditionsAdapted from Exhibit 12.4

3.1


References and Background References and Background ChecksChecks

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

Making background checks more effectiveMaking background checks more effective dig deeper for more informationdig deeper for more information get permission in writingget permission in writing document all checksdocument all checks consider hiring private investigatorsconsider hiring private investigators

3.2


Selection TestsSelection Tests

WorkWorkSampleSample

BiographicalBiographicalDataData

PersonalityPersonality

AssessmentAssessmentCentersCenters

CognitiveCognitiveAbilityAbility

SpecificSpecificAbilityAbility

SelectionSelectionTestsTests

3.3


InterviewsInterviews

Unstructured InterviewsUnstructured Interviews free-flow of questionsfree-flow of questions

Structured InterviewsStructured Interviews interviewer uses standard set of interviewer uses standard set of

prepared questionsprepared questions

Semi-structured InterviewsSemi-structured Interviews some structure combined with some structure combined with

interviewer judgementinterviewer judgement

3.4


Questions in Structured Questions in Structured InterviewsInterviews

Situational QuestionsSituational Questions

Behavioral QuestionsBehavioral Questions

Background QuestionsBackground Questions

Job-Knowledge QuestionsJob-Knowledge Questions

3.4


Guidelines for Conducting Guidelines for Conducting Effective Structured InterviewsEffective Structured Interviews

Planning the Interview

Identify and define the KSAO needed for jobIdentify and define the KSAO needed for job Develop key behavioral questions for each KSAO Develop key behavioral questions for each KSAO For each KSAO , develop a list of things to look For each KSAO , develop a list of things to look

for in applicant’s responsesfor in applicant’s responsesKSAO: Knowledge, skills, abilities, and other characteristics

3.4



Conducting the Interview

Create a relaxed interview atmosphereCreate a relaxed interview atmosphere Review the applicant’s informationReview the applicant’s information Allocate adequate timeAllocate adequate time Put the applicant at easePut the applicant at ease Tell the applicant what to expectTell the applicant what to expect Obtain job-related information (refer to KSAO)Obtain job-related information (refer to KSAO) Describe the job and organization Describe the job and organization

3.4



Review your notes immediately Review your notes immediately Evaluate the applicant on each KSAOEvaluate the applicant on each KSAO Determine each applicant’s probability of Determine each applicant’s probability of

success and make a hiring decision success and make a hiring decision

3.4

After the Interview


What Really WorksWhat Really WorksUsing Selection Tests to Hire Good Using Selection Tests to Hire Good WorkersWorkers

Cognitive Ability Tests

10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of successprobability of success 76%76%

Work Sample Tests

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

probability of successprobability of success 77%77%

4


What Really WorksWhat Really WorksUsing Selection Tests to Hire Using Selection Tests to Hire Good WorkersGood Workers

Assessment Centers

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Structured Interviews

10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


4


What Really WorksWhat Really WorksUsing Selection Tests to Hire Good WorkersUsing Selection Tests to Hire Good Workers

Cognitive Ability + Work Sample Tests10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Cognitive Ability + Integrity Tests10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


Cognitive Ability + Structured Interviews10% 20% 30% 40% 50% 60% 70% 80% 90% 100%


4


Developing Qualified Developing Qualified WorkersWorkersAfter reading the next two sections, you should be able to:

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

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


TrainingTraining

Training Needs

Training Needs

TrainingMethods

TrainingMethods

TrainingEvaluation

TrainingEvaluation

4


Training MethodsTraining Methods

Adapted From Exhibit 12.6

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

4.1


Evaluating TrainingEvaluating 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

4.2


Performance AppraisalPerformance Appraisal

MeasuringJob

Performance

MeasuringJob

Performance

SharingPerformance

Feedback

SharingPerformance

Feedback

5


Measuring Job Performance: Measuring Job Performance: Common Rating ErrorsCommon Rating Errors

Central tendencyCentral tendency all workers are rated as being all workers are rated as being

“average”“average”

Halo errorHalo error all workers are rated as performing at all workers are rated as performing at

the same level in all parts of their jobsthe same level in all parts of their jobs

Leniency errorLeniency error all workers are rated as performing at all workers are rated as performing at

a high levela high level

5.1


Measuring Job PerformanceMeasuring Job Performance

Improving Job Performance Measurements Improving Job Performance Measurements

Improve Performance Appraisal Measures

Improve Performance Appraisal Measures

TrainPerformance Raters

TrainPerformance Raters

5.1


Improving Performance Improving Performance Appraisal MeasuresAppraisal Measures

Objective performance measuresObjective performance measures quantifiable outcomes (output, scrap, quantifiable outcomes (output, scrap,

sales,sales,customer complaints, or rejection customer complaints, or rejection rates)rates)

Subjective performance measuresSubjective performance measures trait rating scalestrait rating scales behavioral observation scales (BOS)behavioral observation scales (BOS)

5.1


Rater TrainingRater Training

Teach raters how to avoid errorsTeach raters how to avoid errors Improve rating accuracyImprove rating accuracy Video training and role playing Video training and role playing

often usedoften used

5.1


Sharing Performance Sharing Performance FeedbackFeedback

Managers often fail to effectively Managers often fail to effectively give employees performance give employees performance feedbackfeedback

360-degree feedback360-degree feedback boss, subordinates, peers, and the boss, subordinates, peers, and the

employeeemployee best for employee developmentbest for employee development

5.2


Performance FeedbackPerformance Feedback

1. Separate developmental feedback from administrative feedback

2. Base performance appraisal feedback sessions on self-appraisals

3. Eliminate the “grading” aspect of performance appraisal

1. Separate developmental feedback from administrative feedback

2. Base performance appraisal feedback sessions on self-appraisals

3. Eliminate the “grading” aspect of performance appraisal

Recommendations for Sharing Performance Feedback

5.2


Performance FeedbackPerformance Feedback

1. Overall progress

2. Problems encountered in meeting job requirements

3. Opportunities to improve performance

4. Long-range plans and opportunities

5. General discussion of possible plans andgoals for the coming year

1. Overall progress

2. Problems encountered in meeting job requirements

3. Opportunities to improve performance

4. Long-range plans and opportunities

5. General discussion of possible plans andgoals for the coming year

What to Discuss in Performance Appraisal Feedback Sessions

5.2


Keeping Qualified WorkersKeeping Qualified Workers

After reading the next two sections, you should be able to:

6.6. describe basic compensation strategies and describe basic compensation strategies and explain how they affect human resource explain how they affect human resource practice.practice.

7.7. discuss the four kinds of employee discuss the four kinds of employee separations:separations:termination, downsizing, retirements, and termination, downsizing, retirements, and turnover.turnover.

6


CompensationCompensation

CompensationDecisions

CompensationDecisions

EmploymentBenefits

EmploymentBenefits

6


Pay-Level DecisionsPay-Level Decisions

Should workers be paid at, below, Should workers be paid at, below, or above current market wage?or above current market wage? above market pay makes it easier for managers to above market pay makes it easier for managers to

attract and retain employeesattract and retain employees Job evaluationJob evaluation is used to determine the is used to determine the

worth of jobsworth of jobs pay the “going rate”pay the “going rate”

6.1


Pay-Variability DecisionsPay-Variability Decisions

Variable PayVariable PayStructuresStructures

Variable PayVariable PayStructuresStructures

CommissionCommission

Profit sharingProfit sharing

Employee stock ownershipEmployee stock ownership

Stock optionsStock options

PieceworkPiecework

6.1


Pay-Structure DecisionsPay-Structure Decisions

Hierarchical pay structuresHierarchical pay structures big differences in pay among pay big differences in pay among pay

levelslevels work best for independent workwork best for independent work Compressed pay structuresCompressed pay structures fewer pay levels with smaller fewer pay levels with smaller

differences differences in pay among pay levelsin pay among pay levels

work best for interdependent workwork best for interdependent work

6.1


Employee BenefitsEmployee Benefits Compensation other than direct wagesCompensation other than direct wages Employee benefits are legally mandated:Employee benefits are legally mandated:

Social SecuritySocial Security worker’s compensationworker’s compensation unemployment insuranceunemployment insurance

Cafeteria benefit plansCafeteria benefit plans employees can select from optional employees can select from optional

benefitsbenefits Payroll deductionsPayroll deductions

6.2


Employee SeparationsEmployee Separations

TerminationsTerminations DownsizingDownsizing

TurnoverTurnoverRetirementsRetirements

7


Terminating EmployeesTerminating Employees

Often mismanagedOften mismanaged Minimize problems in firing Minimize problems in firing

employeesemployees firing should not be the first firing should not be the first

optionoption firing should be for a good reasonfiring should be for a good reason

““employment at will”employment at will” wrongful dischargewrongful discharge

firing should be done in privatefiring should be done in private

7.1


DownsizingDownsizing1.1. Provide clear reasons for the Provide clear reasons for the

layoffs.layoffs.2.2. Get information to avoid laying off Get information to avoid laying off

employees with critical skills.employees with critical skills.3.3. Training managers in how to tell Training managers in how to tell

employees.employees.4.4. Give employees the bad news early Give employees the bad news early

in the day.in the day.5.5. Provide outplacement services and Provide outplacement services and

counseling.counseling.6.6. Communicate with survivors.Communicate with survivors.

7.2


Employee TurnoverEmployee Turnover

Loss of employees who voluntarily Loss of employees who voluntarily choose to leave the companychoose to leave the company

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

Dysfunctional turnover (discouraged)Dysfunctional turnover (discouraged) the loss of high performing employeesthe loss of high performing employees

7.3

chapter seven managing human resource systems

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