evolution of hrm
TRANSCRIPT
Evolution of HRM Function
• Personnel Administration• Scientific Management• Human Relations movement• Government regulation• Human Resources movement• Strategic human resource management
HRM Practices
· Human Resource Planning
· Job analysis
· Recruitment and selection
· Compensation and benefits
· Training and development
· Performance appraisal and management
In a regulatory environment
HRM Responsibility
• Company Leadership– CEO/ Executive leve– Front-line management
• Human Resources Professionals– Executives– Generalists– Specialists
Competitive Advantage
• Cost strategy• Product differentiation• Link to HR practices
Resource Based View
• Rare• Valuable• Imperfectly imitable• Non-substitutable
Competitive Challenges to HRM
• Global challenge• Satisfying stakeholders• Economy• Legal environment• Technology advances• Changing demographics
Human Resource Planning
• Organizational Planning–Organizational Mission–Scan environment–Set strategic goals–Formulate strategic plans
Sample Mission Statement
Southwest Airlines:
The mission of Southwest Airlines is dedication to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit.
Human Resource Planning
• Strategic Plans include:–Technological forecasts–Economic forecasts–Organizational planning–Investment planning–Annual operating plans
HR Planning- Demand Forecasting
Statistical Analysis– Business factors– Trend analysis– Ration Analysis
Judgmental Analysis– Brainstorming– Delphi Technique– Sales force estimates
Other- Unit-demand
HR Planning- Supply Forecasting
• Internal–Assess current workforce–Skills inventory–Succession planning
HR Planning- Actions
• When labor demand exceeds labor supply (tight)– training or retraining– succession planning– promotion from within– subcontracting– use of part-time/ temporary workers– use of overtime
HR Planning- Actions
• When labor supply exceeds labor demand (loose)– pay cuts– reduced hours– work-sharing– voluntary early retirements– inducements to quit (eg. Severance pay)– layoffs
Environmental Scanning
• Economic, social, political factors• Government and legislation• Population, workforce demographics• Competition, markets• Technology
Exercise- Trend Analysis
• Aging of the labor force• Shift from manufacturing economy to
service economy• Increasing number of dual career families• Increasing diversity of workforce (more
women and minorities)
Human Resource Information Systems
• Created for administrative purposes• Used also to support decision-making• Typically a relational database• Often managed by an HR group
Data Collected by an HRIS
Employee Data• Name• Social security number• Date of birth• Gender• Race• Marital Status• Address• Telephone Number• Emergency Contact• Dependent Information
Organization/Job Data• Pre-employment test scores• Job title• Job grade• Salary• Benefit selections• Performance appraisal ratings• Promotional history• Corrective action records• Attendance history• Training records
Functional Use of Data
Functions Using Data• Compensation and
Benefits• Health and Safety• Performance Appraisal• Training and Development• EEO/AA• Recruiting and Placement• Labor Relations
Regularly Generated/Ad hoc Reports
• Payroll runs• Benefit costs• Recruiting effectiveness• Supply/demand
forecasting• Transaction histories• Training completed• Adverse impact analysis
Who can access/use the HRIS
• HR Staff• Managers• Strategic planners• Employees
Important Considerations in HRIS Implementation
• Return on investment• Off-the shelf vs. customization• Confidentiality• Legal considerations
Intranets- HR Uses
• Job posting• On-line training and scheduling• Employee manual• Employee communications and messages• Self-service file maintenance• Benefit enrollment
Intranets and Competitive Advantage
Strategic Uses:• Improve communication
effectiveness• Knowledge management• Support innovation
Intranets must have:
• Effective management• Culture that supports information sharing• User training• Employee empowerment to use• Organized content
Analyzing HRIS Data
• Data-mining• Other Statistical Analysis• Data-warehousing
Examples of Relationships in HRIS• What are some characteristics of applicants that are
eventually successful in the organization?• Is there a relationship between merit increases and improved
performance?• Do benefit selections affect turnover?• Are there common career paths in the organization?• Is there a relationship between promotional history and length
of service?• Are there any attributes that make an employee a productive
telecommuter?• Is there a relationship between absenteeism and performance?• Is there a profile of a typically successful employee?
Outline of Legal Considerations
• Regulatory Model• Equal Employment Opportunity• Workplace Justice Laws• Pay and Benefit Legislation• Labor Unions• Health and Safety
EEO Legislation
• 1964: Title Vll Civil Rights Act• 1967: Age Discrimination in Employment Act• 1978: Pregnancy Discrimination Act• 1986: Immigration Reform & Control Act• 1990: Americans with Disabilities Act• 1991: Civil Rights Act
Regulatory Model
Concerns
• Fairness issues• Economic disparity• Changing material
values• Interest group
agendas• Political party
mandates• Loop-holes in
current legislation
State Court System
Federal Court System
• Passed by congress• Passed by state
legislature• Presidential executive
orders
• Federal agencies • State agencies• Independent• commissions
• Rulings• Written
regulations• Complaint
investigations• Technical
assistance• Lawsuits
• Planning compliance strategies
• Formulating appropriate HR policies
• Briefing and training employees and managers
• Defending lawsuits• Working with
government agencies lobbying for policy changes
Opinions and Decisions
Laws AgenciesManagementResponses
RegulatoryAction
Challenges to Laws
Types of Discrimination
• Disparate TreatmentDifferential treatment of protected class
individuals
• Disparate ImpactIdentical treatment of protected class individuals,
but differential outcomes
Defenses Against Discrimination
• Job relatedness• Business necessity• Bona Fide Occupational Qualification• Bona Fide Seniority System• Voluntary Affirmative Action Program• Demonstrate no adverse impact
Proving Adverse Impact
• 4/5 Rule - comparison of minority/majority selection ratio
• If selection ratio is below 4/5 or 80%- then there is adverse impact
Adverse Impact- Examples#hired/ #applied- compute for each group
Female: 30/100= 30%;
Male: 60/100= 60%
minority % / majority % (compare with 4/5) 30% / 60% = .30/.60 = 0.5 (5/10 or 50%)
#hired/ #applied- compute for each groupFemale: 50/100= 50%;
Male: 60/100= 60%
minority % / majority % (compare with 4/5) 50% / 60% = .50/.60 = 0.83 (5/6 or 83%)
Affirmative Action Plans
• Required for Federal Contractors by Executive Order 11246
• Can also be voluntary• Never use quota system- unless directed by
courts• Components:
– Utilization analysis– Written plan
Employment-at-Will Exceptions
• Violates a law• Public policy• Implied contract• Good faith and fair dealing
Avoiding Wrongful Termination
• Employment-at-Will statement in:– applications– offer letters– employee handbook
• Train managers:– avoid making commitments or promises– avoid certain terminology
Employee Handbook
• Employment policies or procedures• Orientation information for new
employees• Legal obligations of employer and
employee• Responsibilities of employer and
employee to each other
Sexual Harassment
• Quid pro quo• Hostile environment
Tips to avoid:• Have a written policy• Provide training• Formal investigation process• Be aware
Family Medical Leave Act
• Companies with 50 or more employees• 12 weeks of unpaid leave for
– birth or adoption– own illness or family member illness
• Continued health coverage• Can be intermittent• Reinstated to same or similar position
Surveillance and Monitoring
• Business reasons• Have a written policy• Use in moderation• Treat all employees equally
The Process of Job Analysis
Sources of Data
Job Description
Human Resources Functions
Job Specification
Methods of Collecting
Data
Job Data
Sources of Data
• Job Analyst• Employee• Supervisor• Customer
Methods of Collection
• Interviews• Questionnaires• Observations• Records or Critical Incidents
Data Collected
• Job Content• Job Context• Worker Requirements:–Knowledge–Skills–Abilities
Results of Job Analysis• Job Description
–Tasks–Duties –Responsibilities– Job Specifications
• Knowledge requirements• Skill requirements• Abilities needed (including physical
demands)
Using Job Analysis Results
• Recruiting and Selection• Training and Development• Performance Appraisal• Compensation• Productivity improvement• Employee discipline• Safety• Organizational Efficiency
Problems with Job Descriptions
• Not useful if not well-written• Often not updated• Could violate law• Can limit scope of job holder
Recruiting
• Purpose- create pool• Specifically:
– Minimize cost– Increase success– Improve retention– EEO issues– Public image
Strategic Issues
• Large number or highly qualified?• Quick or quality?• Cost?• Fill vacancy or start career?• Public relations?
Steps in Recruiting Process
• Identify opening• How to fill opening• Identify targeted population• Source candidates• Selection process
Internal Recruitment
• Advantages– Capitalize on investment– Increase moral– Improve retention
• Disadvantages– Insufficient supply– “Ripple effect”– Lack new ideas
Internal Recruiting Process
• Skills database• Supervisor recommendations• Career progression system• Job posting
– Available to all– Timeliness– Can de-moralize if not done well– Confidentiality
External Recruiting• Employee referrals• “Walk-ins”• Recruitment advertising• Direct recruiting• Search research• Contingency search (include temp-to-perm)• Retained search • College recruiting• Non-fee agencies
External Recruiting
• Job Fairs• Professional Associations• Internet
–Company website–Online boards–Banner advertising–Using e-mail
Choosing the Right Method• Depends on:
– Type of job – Timeframe– Geographic area– Cost– Mix of candidates
• Need to look at:– Define target market– What’s worked before?
Doing it Well
• Realistic Job Preview• Train organizational recruiters• Convey organizational information• Timing of process• Offer flexibility• Evaluate your efforts
Evaluate your Efforts• Operating Costs• Cost per hire• Yield ratios
– Number of resumes to interviews– Interviews to offers– Offers to hires– Overall
• Retention rates• Performance rating
Importance of Effective Selection
• Retention• Productivity• Reduce training costs• Legal compliance
Steps in Selection
• Understand organization and job• Select evaluation process• Implement selection process• Make decision• Background check• Offer
Legal Considerations• Equal Employment Opportunity
Commission (EEOC)– Uniform Guidelines on Employee Selection
Procedures– National Origin– Pregnancy discrimination– Age discrimination– Religious discrimination– Disability
Legal Considerations
• Constitutional– Privacy
• Tort law– Negligent hiring– Defamation
• Other– Fair Credit Reporting Act
Selection Strategy
• Decide what selection devices to use for each position. (Utility Analysis)
• What order?• Multiple hurdle or same treatment?
– Example- everyone must pass cognitive ability test to get to interview OR
– Everyone takes cognitive ability test and gets interview
Selection Strategy
• Compensatory: all applicants get all “tests” (*costly!)(1) applications 200
(2) paper & pencil tests 200
(3) work sample test 200
(4) interview 200
(5) offers 10
*Note: courts don’t accept “bottom line” defense- look for adverse impact at each step of the process
• Multiple Hurdle: weed out applicants at each step of the hiring process based on whether pass/fail each “test” (*greater potential for adverse impact!)(1) applications 200
(2) paper & pencil tests 120
(3) work sample test 40
(4) interview 20
(5) offers 10
20
(5) offers 10
Reliability
• Consistent/stable• Over time• Across different samples• Across different judges
Validity
• Face validity• Content validity• Construct validity• Criterion related validity• Validation approaches
– Predictive validation study– Concurrent validation study– Validity generalization
Utility Analysis Considerations
• Validity coefficient• Selection ratio• Job performance differential• Cost of test
Utility Analysis Example
Expected gain ($) =(# applicants selected) x (validity) x
(standard deviation of performance) x
(average standardized test score) -
(# applicants tested)(cost of test)
Selection Methods
• Application• Biodata inventory• Background investigation
– Drug test– Reference checks
• Written or Computer-based Tests• Interviews
Examples of Written or Computer-based Tests
• Job sample performance tests– Assessment centers
• Cognitive ability tests• Psychomotor ability tests• Personality inventories • Polygraph or honesty tests
Interview Process
• Phone screening• Human resources- organization fit• Hiring manager• Peers/customers• “round robin” style• Lunch, dinner or reception
Types of Interviews
• Pre-screening• Resume-based• Structured • Patterned• Stress• Case• Behavioral
Interviewers Should:
• Be prepared• Listen• Take notes• Avoid common errors:
– similar-to-me– halo/horn effect– recency effect
Selection Process-other
• Candidate communications– Standard/timely– One person responsible
• Extending offers– Contingent– Salary negotiable– Verbal followed by written
Compensation- Why important?
• Cost efficiency• Legal compliance• Enhance recruiting• Improve retention
Equity Theory
• Inputs vs. Outputs• Variance?
– Decrease inputs– Request raise– Change mindset– Different comparison point– Escape
• Internal consistency vs. external competitiveness
Developing a Compensation System
• Job analysis• Job evaluation • Market pricing• Choose compensation method• Develop pay structure• Individual adjustments
Job Evaluation- Methods
• Job ranking system• Job classification system• Point system• Factor comparison system• Hay profile method
Market Pricing
• Focus on external• Salary surveys• Pay policy–Lead–Match–Lag
Final steps• Choose compensation method
– Flat-rate– Skill-based– Incentive pay
• Develop pay structure– Job grades– Market point
• Individual adjustments
Legal Constraints• Fair Labor Standards Act
– Exempt vs. non-exempt• Administrative• Executive• Professional • Sales
– Minimum wage– Overtime
• Equal Pay Act– Comparable worth
Designing Benefit Plans
Need to Consider: • Long-term strategic plans• Characteristics of workforce• Legal requirements• Competitiveness• Cost-effectiveness
Mandatory Benefits• Worker’s Compensation
– On the job (includes stress)– Medical expenses/lost wages– Avoid injuries
• Unemployment Compensation- may be denied:
– Quit for no good reason– Discharged for misconduct– Refusing suitable work
• Social Security
Retirement Benefits
• Defined benefit pension plan• Defined contribution pension plan• 401(k) plans• Employee Retirement Income
Security Act (ERISA)
Other Benefits• Insurance
– Health/dental– Life, death or dismemberment– Disability
• Paid time-off– Vacation– Personal days– Holidays– Sick days
Other Benefits• Employee service or “perqs”
– Day/elder care– Tuition reimbursement– Company car/other equipment– Service/other rewards– Stock purchase plans– Fitness/wellness programs– Employee Assistance Program– Discounted services– Social activities/holiday bonus
Benefit Administration
• “Vanilla” packages• Flexible or Cafeteria plans• Communication
Legal Issues
• Consolidated Omnibus Budget Reconciliation Act (COBRA)–continuation of benefits
• Health Insurance Portability Protection Act (HIPPA)–eliminates “pre-existing condition”
New Hire Orientation
• Retain/motivate• Increase productivity• Reduce anxiety• Set expectations
Orientation “Do’s”• Provide materials in advance• Provide information on:
– Company– Social– Technical– Physical
• Be efficient• Spread out
Orientation “Don’ts”
• Emphasize paperwork• Cause information overload• Consider “HR’s job”• Hold hostage
Training Department
• Faculty Model• Customer Model• Corporate University• Virtual Training
Instructional Design Model
1. Conduct needs assessment
2. Design training
3. Select training methods
5. Ensure transfer of training
6. Evaluate training programs
Needs Assessment
Levels of analysis:• Organizational• Task• Competency• Person
Designing the Program• Instructional objectives• Assess readiness and motivation• Select appropriate instructors• Understand adult learners
– meaningful examples– individual differences– practice– whole vs. parts– distributive vs. massed– feedback and reinforcement
Select Training Method• On-the-job• Job instruction method• Apprenticeship training• Lecture• Case studies• Role playing • Behavior modeling• Computer-based instruction• Interactive video
Transfer of Training
• Over-learning• Action plan• Tie to job• Follow-up
Evaluating Training
• Employee reactions- “happy sheets”• Testing• Performance appraisal• Organizational performance• Return on investment
Management Development
• Succession planning• Development opportunities• Specific training
Career Stages
• Exploration/establishment• Advancement• Maintenance• Strategic planning or
Disengagement
Career Development Initiatives
• Career pathing• Career Planning Workbooks• Career counseling or workshops• Mentoring• Self-selected training opportunities
Performance Appraisal- Goals
• Improve performance• Support employment decisions• Ensure legal compliance• Increase employee satisfaction
Types of Rating Instruments• Individual performance against common standards
–Graphic Rating Scales–Behaviorally Anchored Rating Scale (BARS)–Behavior Observation Scale (BOS)
• Individual performance against individual standards
–Management by Objectives (MBO)• Compare employees to one another
–Ranking–Paired Comparison–Forced Distribution
Who should evaluate?
• Immediate supervisor• Peers • Subordinates• Self-appraisal• Customers served• Multi-rater or 360 degree feedback
Appraisal Meeting
• Ask for self-assessment• Express appreciation/share
developmental opportunities• Focus on behavior- not the person• Be supportive
Effective PA Systems
• Good standards• Train raters• Timely- follow policy• Well documented performance• Opportunity to respond• Action plan
Rater Errors
• Recency effect• First impression error• Similar-to-me effect• Halo/horn effect• Central tendency
The Difficult Employee• Unsatisfactory quality or quantity of work
– Lack of skills or motivation– May need to identify and offer correction– Examine environment– Disciplinary action
• Personal problems affect job– Drug or alcohol?– EAP– Disciplinary action
The Difficult Employee
• Violate laws– Investigative process– Pursue with authorities– Disciplinary action
• Violate policies– Educate employees– Disciplinary action
Disciplinary Process
• Warning system• Act promptly• Consistency• Handle professionally
Progressive Discipline• Stepped process
– Verbal warning– Written warning– Final written warning or suspension– Termination
• Identify behavior and why it is a problem• Clear warning and explain consequences• Document!
Positive Discipline
• Stepped process• Counseling & motivation replace
threats & punishment• Collaborative problem solving• Must train supervisors
Disciplinary Meetings
• Keep private• Criticize selectively• Opportunity to respond• Attack problem, not person
Alternative Dispute Resolution
• Advantages:– Less time consuming– Less expensive– Private
• Components– Mandatory– Not binding on employee– Binding on company
Disputes• Covered
– Involuntary terminations– Claims of harassment or discrimination– Constructive discharge– Additional disputes
• Not covered– Benefit or pension claims– Worker’s compensation– Unemployment– Establishment or modification of a policy
ADR Format
• Mediation• Arbitration• Summary jury trial• Mini-trial• Peer review process
Successful ADR
• Procedures in place• Arbitrators with expertise• Employees right to representation
and discovery• Written opinion
Productivity Improvement Programs
• Types of rewards–Extrinsic-Pay for Performance–Intrinsic- Employee
Empowerment
Expectancy Theory
Effort
Performance
Rewards
Expectancy
Instrumentality
Valence
MOTIVATION
X
X
Pay for Performance must have:
• Effort-performance link• Performance-reward link• Valued rewards• Timeliness of rewards• Performance- organizational goals link• Cost-efficient
Types of Plans
• Merit pay• Gainsharing plans• Profit sharing plans• Employee Stock Ownership Plans (ESOP)• Variable pay plans
Variable Pay Plans
• Piece rate• Standard hour• Bonus• Sales incentives
– Straight commission– Combined salary/commission– Draw
Employee Empowerment Plans
• Informal participative decision-making• Job enrichment
– Skill variety, task identity, task significance, autonomy, feedback
• Quality circles• Continuous improvement programs• Self-managed work-teams
Employee Relations
• Must base initiatives on:–Organizational size–Company culture–Strategic goals
Responsibilities of Employee Relations Function
• Policies• Employee retention• Work/family balance• EEO Compliance• Diversity
Policy Development
• Monitor, develop and implement• Manage performance appraisal
system• Manage disciplinary action system
Employee Retention Strategy
• Benchmarking• Attitude surveys• Union-avoidance• Wellness programs• Employee Assistance Program• Performance counseling• Service/recognition programs• Exit interviews
Work/Family Balance
• Flexible work schedules• Telecommuting
– Who– Financial support– Communication– Social issues
• Day/elder care
EEO Compliance
• Reporting• Affirmative action plans• Responds to employees• Management training• Legal issues
Diversity Initiatives
• Develops awareness• Culture building• Management training• Employee training
Labor Relations History
• 1700’s craft guilds• American Federation of Labor (AFL) 1886• Congress of Industrial Organizations (CIO)
1936 - 1935 35% of workforce• World War II- growth, AFL-CIO merger• Drop to currently 14% 1997
Why join a union?
• Economic needs• Dissatisfaction with management• Social and status concerns
Structure of Unions
• Local Union• National Union• AFL-CIO
Labor Law• Railway Labor Act 1926• Norris-Laguardia Act 1932
– No arbitrary court injunctions– No “yellow dog” contracts
• National Labor Relations Act (Wagner Act) 1932– Employee’s right to bargain collectively– Certification/de-certification process– Right to strike, define ULP’s– Establish National Labor Relations Board (NLRB)
Labor Law, Cont.• Labor Management Relations Act (Taft-Hartley
Act) 1947– Employers right to free speech– No “closed shop”– President right to seek injunction– Established Federal Mediation and Conciliation Service
• Labor-Management Reporting and Disclosure Act (Landrum-Griffin Act) 1959– Bill of rights for union members – Unions cannot discriminate– Financial reporting requirement
How Unions Organize
• Employer Recognition–Petition phase–Election phase–Union Certification–Collective bargaining agreement
Collective Bargaining Agreement
• Preparing for bargaining• Establishing an agenda
– Illegal items– Mandatory items– Voluntary items
• Good faith bargaining
Collective Bargaining, Cont.• Union’s power:
– Strike– Boycott
• Employer’s power: – Lockout– Continue operating
• Resolving deadlocks:–Mediation–Arbitration
Unfair Labor Practices
• Employer–interfere, restrain or coerce–dominate/unlawfully support union–discriminate against those who
participate–retaliation–refuse to bargain
Unfair Labor Practices
• Union–coercive behavior–threats of economic reprisals–third-party strike/boycott–featherbedding–unfairly represent employees
Labor Relations, cont.
• Administering a contract– Grievance process
• Cooperation efforts• Union de-certification
– Petition for de-certification– Petition for a different union– Employers may petition
Health and Safety Facts
• Over 85,000 work related deaths in past 15 yrs.
• About 75 million lost work days.• Cost to employers- 1.75 billion per
year
Occupational Safety and Health Act 1970
• Established Occupational Health and Safety Administration
• Covers all employers except government• Developed and set guidelines
How OSHA is enforced:
• Workplace inspections• Citations and penalties• On-site consultations• Voluntary Protection Programs
Responsibilities and Rights
• Provide hazard-free workplace• Keep employees informed• Keep records and report incidents• “Right to know” requirements
– Material Safety Data Sheets (MSDS)
Creating a Safe Environment
• Safety awareness• Safety training• Incentives for safety• Accident prevention• Safety committee
Health Hazards• Chemical hazards
– Teratogens
• Indoor air quality• Video display terminals• Repetitive motion injuries
– carpal tunnel syndrome– ergonomics
• Substance abuse
Employee Wellness
• Wellness programs• Stress management• Employee Assistance Programs
Workplace Violence
• Employment process• Management training• Communicated policy• Security
International Human Resource Management
• Cultural differences• Recruiting and selection• Training• Compensation• Legal issues• Returning home
Managing in a Cross-cultural Organization
• Cultural sensitivity• Motivation• Ethics• Negotiations• Leadership• Perception• Communication
International Employees
• Expatriate or home-country nationals
• Host-country national• Third-country nationals
Selection
• Stress tolerance• Relationship development• Perceptual skills• Family support• Testing
Training
• Language• Cultural• Family/personal life
Compensation
• Incentive to take position• Maintain standard of living• Children education• Maintain relationships
–Balance Sheet Approach
Legal Issues
• Local laws• employment discrimination• Human rights
Repatriation
• Planning• Career Management• Transitional Support
Careers in HRM
• Generalist vs. Specialist• Large vs. small organization• Outsourced functions• Strategic vs. administrative
Specialist Functions
• Compensation• Benefits• Training• Employee Relations• Recruiting• HRIS
Management Career Paths
• Senior Generalist• Team leader• Manager• Director• Executive
Human Resource Service Providers
• Independent or with company• Organizational effectiveness consulting• Staffing• Benefits• General HR
What is needed?• HR Expertise- Law• Business Operations expertise• Strong leadership ability• Oral and written communication skills• Ability to develop relationships• Creative• Strong sense of ethics• Persuasive
Career Preparation
• Undergraduate degree• Graduate degree- MBA or HR• Certification: PHR, SPHR• Conferences