Explain how the management of human resource is both a role for the human resource management department and all managers.
Describe the key means by which companies find job candidates.
After studying this chapter, you should be able to:
Explain how companies select job candidates.
Highlight the keys to effective socialization and training.
Describe the common methods of managing performance.
After studying this chapter, you should be able to:
Discuss the various compensation and reward systems commonly used.
Explain how various laws affect core HR activities
After studying this chapter, you should be able to:
Firm’s ability to survive and prosper is increasingly a function of the human resources they have
Managers’ career success depends on how well they manager their firm’s resources
EnvironmentExternalInternal
Organization Strategy
CompetitiveAdvantage
Human Resource Management ActivitiesPlanning, Job Analysis, Recruiting, Selecting,
Socializing and Training, Job Design, Performance Appraisal, Compensation, Development
Adapted from Exhibit 15.1: General Framework of HRM
Two main HRM goalsGetting the right people
HRM activities must be aligned with corporate strategy
Maximizing their performance and potential Failure of either goal can influence the
success or failure of the other
PlanningForecasting demandAssessing supplyFormulating fulfillment plans
Job analysis (assessing the job)
Getting the Right People
Scope and depth of jobs Requisite skills, abilities, and
knowledge that people need to perform their jobs successfully
Job description Job specification
Recruiting Job posting
Internal recruiting method Job, its pay, level, description, and qualifications are
posted or announced to current employeesAdvertisementsEmployment agenciesEmployee referralsSchool placement centers Internet recruiting
Getting the Right People
Selectingvalid selection technique Interviews
Unstructured Structured
Work samplingAssessment centers
Getting the Right People
Work simulation Written tests Background and
reference checks Physical examinations
1. Plan the interview by reviewing the candidate and the job specifications.
2. Establish rapport with a friendly greeting and start the interview with a nonjob question.
3. Follow structured set of questions.
4. Avoid questions that require or solicit a simple yes or no response.
5. Try not to telegraph, or give cues for, the desired answer.
6. Make sure the candidate has plenty of time to answer—do not monopolize the conversation.
7. Listen carefully and paraphrase key candidate answers to be sure you understand what they meant to say.
Adapted from Exhibit 15.2: Tips for interviewers
8. Ask for specific, not general, examples of the candidate’s experience and accomplishments.
9. Leave time at the end of the interview to answer questions from the candidate.
10. At the close make sure the candidate knows what the next steps are and approximate timing.
11. After the candidate leaves, review your notes and highlight important points while they are fresh in your mind.
Adapted from Exhibit 15.2: Tips for interviewers
Prepare for the interview by researching the company through articles and its own Web site.
Smile and provide a warm greeting and firm handshake if the interviewer extends his or her hand.
Make sure that your overall appearance (hair style, clothing, makeup, and so on) match the nature of the business and culture of the company.
Watch your nonverbal behavior to ensure that you maintain good eye contact and convey enthusiasm without being overly expressive with your hands or other body movements.
Try to solicit the interviewer’s needs early in the interview.
Adapted from Exhibit 15.3: Tips for Interviewees
Early in the interview be sure to get a complete picture of the job through questions such as “Can you tell about what has led people to succeed in this job in the past?”
Explicitly relate yourself and capabilities to the interviewer’s needs through statements such as, “You mentioned that one of the keys to this position is the ability to motivate others. In my experience at XYZ. . . .”
Take your time before answering; you do not need to begin talking the instant the interviewer ask a question.
Conclude the interview by thanking the person for the opportunity and expressing your interest in the company and the position.
Adapted from Exhibit 15.3: Tips for Interviewees
Socialization and training Orientation
Minimize paperwork Informal meeting with hire’s immediate supervisor Alternate heavy and lighter information Provide glossary of terms Match new employees with experienced worker
On-the-job training Off the job training Training objectives
Maximizing Performance
1. Expanded Responsibilities. This training technique expands the job duties, assignments, and responsibilities of an individual.
2. Job Rotation. Also called cross-training, this practice moves individuals to various types of jobs within the organization at the same level or next-immediate-higher level for periods of time from an hour or two to as long as a year.
3. Staff Development Meetings. Meetings are usually held offsite to discuss facts of each individual’s job and to develop ideas for improving job performance.
4. ”Assistant to” Positions. Promising employees serve as staff assistants to higher-skill level jobs for a specified period of time (often one to three months) to become more familiar with the higher-skilled positions in the organization.
Adapted from Exhibit 15.4: On-the-job Training Techniques
5. Problem-Solving Conferences. Conferences are held to solve a specific problem being experienced by a group or the organization as a whole. It involves brainstorming and other creative means to come up with solutions to the basic problems.
6. Mentoring. A guide or knowledgeable person higher up in the organization helps a new employee “learn the ropes” of the organization and provides other advice.
7. Special Assignments. Special tasks or responsibilities are given to an individual for a specified period of time. The assignment may be writing up a report, investigating the feasibility for a new project, process, service, or product, preparing a newsletter, or evaluating a company policy or procedure.
Adapted from Exhibit 15.4: On-the-job Training Techniques
8. Company Trainers. Special programs can cover such topics as safety, new personnel procedures, new product or services, affirmative action, and technical programs.
9. Outside Consultants. Recognized experts are brought to the company to conduct training on such topics as goal setting, communications, assessment techniques, safety, and other current topics of importance. They often supplement training done by company trainers.
10. Consultant Advisory Reviews. Experts in specialized fields meet with various managers and employee groups to investigate and help solve particular problems. The emphasis is on problem solving rather than training.
Adapted from Exhibit 15.4: On-the-job Training Techniques
11. Reading Matter. A formal program is created to circulate books, journals, selected articles, new business material, and so on to selected employees. An effective program also includes periodic scheduled meetings to discuss the material.
12. Apprenticeship. Training is provided through working under a journeyman or master in a craft. The apprentice works alongside a person skilled in the craft and is taught by that person. Apprenticeship programs also often include some classroom work.
Source: Adapted from W. P. Anthony, D. L. Perrewé, and K. M. Kacmar, Strategic Human Resource Management (Fort Worth, TX: Harcourt Brace Jovanovich, 1993).
Adapted from Exhibit 15.4: On-the-job Training Techniques
Understanding correct and incorrect
behaviors
Knowledge of why certain behaviors are correct or incorrect
Opportunities to practice desired
behaviors
Feedback on performance
Opportunities to practice and improve
Job design Job sharingReengineering
Maximizing Performance
Performance appraisal Graphic rating scales Behaviorally anchored rating scales 360-degree feedback Effective performance feedback
Critical incidents
Adapted from Exhibit 15.5: Graphic Rating Scale
Employee name: Dept.
1. Quality of work
2. Quantity of work
3. Cooperation
4. Dependability
5. Initiative
6. Job knowledge
7. Attitude
Excellent Good Average Fair Poor
Adapted from Exhibit 15.6: Behaviorally Anchored Rating Scale
Position:Job dimensions:
Plans work and organizes time carefully so as to maximize resources and meet commitments
Even though this associate has a report due on another project, he or she would be well prepared for the assigned discussion on your project
9
8
7
This associate would keep a calendar or schedule on which deadlines and activities are carefully noted, and which would be consulted before making new commitments.
Plans and organizes time and effort primarily for large segments of a task. Usually meets commitments, but may overlook what are considered secondary details.
As program chief, this associate would mange arrangements for enlisting resources for a special project reasonably well, but would probably omit one or two details that would have to be handled by improvisation.
6
5
4
This associate would meet a deadline in handing in a report, but the report might be below usual standard if other deadlines occur on the same day the report is due.
This associate’s evaluations are likely not to reflect abilities because of overcommitments in other activities.
Adapted from Exhibit 15.6: Behaviorally Anchored Rating Scale
Appears to do little planning. May perform effectively, despite what seems to be a disorganized approach, by concerted effort, although deadlines may be missed.
This associate would plan more by enthusiasm than by timetable and frequently have to work late the night before an assignment is due, although it would not be completed on time.
3
2
1
This associate would often be late for meetings, although others in similar circumstances do not seem to find it difficult to be on time.
This associate never makes a deadline, even with sufficient notice.
Adapted from Exhibit 15.6: Behaviorally Anchored Rating Scale
1. Review key work objectives, goals, or standards against which the employee’s performance is measured
Review work objectives
2. Summarize employee’s overall performance by reviewing specific positive and negative incidents
Summarize overall performance
(critical incidents)
Review work objectives
3. Discuss causes of weak performance and listen carefully to the employee’s explanation
Summarize overall performance
(critical incidents)
Review work objectives
Discuss causes of poor performance
4. Discuss alternative means of improving future performance and encourage employee input
Summarize overall performance
(critical incidents)
Review work objectives
Discuss causes of poor performance
Agree on process for future improvement
5. Establish an agreed approach, timetable, and review process for future improvement
Summarize overall performance
(critical incidents)
Review work objectives
Discuss causes of poor performance
Agree on process for future improvement
Discuss alternatives for improving
6. Establish key objectives, timetables, and standards for the upcoming performance period
Summarize overall performance
(critical incidents)
Review work objectives
Objectives for next performance period
Discuss causes of poor performance
Agree on process for future improvement
Discuss alternatives for improving
7. Leave the meeting on an encouraging and positive note Summarize overall
performance(critical incidents)
Review work objectives
Objectives for next performance period
Discuss causes of poor performance
Agree on process for future improvement
Discuss alternatives for improving
End with encouragement
CompensationPay
Pay structure Broad band system At-risk system Incentive plans
BenefitsRewards and motivation
Maximizing Performance
Adapted from Exhibit 15.7: Traditional and Contemporary Pay Structures
Job evaluation points
Mo
nth
ly p
ay
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
100200
300400
500600
700800
9001000
11001200
13001400
Traditional Pay Structure
1
2
3
Job evaluation points
Mo
nth
ly p
ay
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
100200
300400
500600
700800
9001000
11001200
13001400
Broad Band Pay Structure
Adapted from Exhibit 15.7: Traditional and Contemporary Pay Structures
Career systems and developmentCareer pathsCross-functional job rotationPromotionDual-career couplesTerminationLayoffs
Labor relations
Maximizing Performance
Affirmative action programsExpatriate employeesGlass ceilingBona fide occupational qualifications
(BFOQ) Sexual harassment Workforce diversity
Managing workforce diversity Globalization
EnforcementAct Requirements Covers Agency
Adapted from Exhibit 15.8: Major U.S. Federal Laws and Regulations Related to Human Resource Management
Thirteenth Amendment
Abolished slavery All individuals Court System
Fourteenth Amendment
Provides equal protection for all citizens and requires due process in state action
State actions (e.g., decisions of governmental organizations
Court System
Civil Rights Acts of 1866 and 1871
Grant all citizens the right to make, perform, modify, and terminate contracts and enjoy all benefits, terms, and conditions of the contractual relationship
Employers engaged in interstate commerce
EEOC
EnforcementAct Requirements Covers Agency
Equal Pay Act of 1963
Requires that men and women performing equal jobs receive equal pay
Employers with 15 or more employees working 20 or more weeks per year, labor unions, and employment agencies
EEOC
Title VII of CRA
Provides equal protection for all citizens and requires due process in state action
State actions (e.g., decisions of governmental organizations
Court System
Age Discrimination in Employment Act of 1967
Prohibits discrimination in employment against individuals 40 years of age or older
Employers with 15 or more employees working 20 or more weeks per year; labor unions; employment agencies; federal government
EEOC
Adapted from Exhibit 15.8: Major U.S. Federal Laws and Regulations Related to Human Resource Management
EnforcementAct Requirements Covers Agency
Rehabilitation Act of 1973
Requires affirmative action in the employment of individuals with disabilities
Government agencies; federal contractors and subcontractors with contracts greater than $2,500
OFCCP
Americans with Disabilities Act
Prohibits discrimination against individuals with disabilities of 1990
Employers with more than 15 employees
EEOC
Executive Order 11246
Requires affirmative action in hiring women and minorities
Federal contractors and subcontractors with contracts greater than $10,000
OFCCP
Civil Rights Act of 1991
Prohibits discrimination (same as Title VII)
Same as Title VII, plus applies Section 1981 to employment discrimination cases
OFCCP
Adapted from Exhibit 15.8: Major U.S. Federal Laws and Regulations Related to Human Resource Management
EnforcementAct Requirements Covers Agency
Family and medical leave Act of 1993
Requires employers to provide 12 weeks of unpaid leave for family and medical emergencies
Employers with more than 50 employees
Department of Labor
Source: Raymond A. Noe, John R. Hollenbeck, Barry Gerhart, and Patrick M. Wright, Human Resource Management: Gaining a Competitive Advantage (Burr Ridge, Ill.:Richard D. Irwin, 1997), p. 107. Copyright 1997. Reproduced with permission of The McGraw-Hill Companies.
Adapted from Exhibit 15.8: Major U.S. Federal Laws and Regulations Related to Human Resource Management
African-American men
African-American women
Asian men
Asian women
Hispanic men
Hispanic women
White men
White women
0 10 20 30 40 50 60 70 80 90 100
Adapted from Exhibit 15.9: Increasing Diversity of U.S. Workforce
22%
29%
58%
65%
60%
71%
8%
20%
Percentage increases by year 2000