lecture notes in breif for exam

7/31/2019 Lecture Notes in Breif for EXAM

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Chapter 3 The Managers Role in Strategic Human Resource Management

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I. Why Strategic Planning is Important to all Managers

The firms strategic plan guides much of what is done by all to accomplish organizational goals.

Decisions made by managers depend on the goals set at each organizational level in support of

higher level goals.

In formulating their HR strategies, HR managers must address three basic challenges:

1) Support organizational productivity and performance improvement efforts;

2) Employees play an expanded role in employers performance improvement efforts;

3) HR must be more involved in designing not just executingthe companys strategic plan.

II. Fundamentals of Management Planning

A. Bu si ne ss Pla nThe business plan provides a comprehensive view of the firms situation today and of its company -wide

and departmental goals and plans for the next three to five years.

B. Marketing PlanThe marketing plan specifies the nature of the product or service the organization provides. It also shows

the approaches the company plans to take with respect to pricing and promoting the product or service.

C. Personnel/Human Resource PlanAnything the company does, or plans to do, will require managers and other personnel, and therefore a

personnel plan.

D. Production/Operations PlanImplementing the marketing plan will necessitate having productive assets. For example, it takes

factories and machines to assemble Dells PCs.

E. Financial Planmost managers plans, goals, and accomplishments end up expressed in financial terms.

III. How Managers Set Objectives

SMART Goals: Experienced managers use the acronym SMART to signify that goals are specific,measurable, attainable, relevant, and timely.


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Motivational Goals: Goals are only useful if employees are motivated to achieve them. Assign specificgoals, assign measurable goals, assign challenging goals, and encourage participation.

Management by Objectives (MBO ): The supervisor and subordinate jointly set goals for the latter andperiodically assess progress toward those goals. IV. The Strategic Management Process

A strategic plan is the companys plan for how it will match its internal strengths and weaknesses with

external opportunities and threats in order to maintain a competitive advantage. Figure 3-5 sums up

the strategic management process in seven steps as follows:

1. Define the current business and mission.

2. Perform external and internal audits.

3. Formulate new business and mission statement.

4. Translate the mission into goals.

5. Formulate strategies to achieve the strategic goal.

6. Implement the strategy.

7. Evaluate performance.

V. Improving Productivity through HRISBusiness planning software packages are available to assist the manager in writing strategic and business plans.

A. Types of Strategies

1. Corporate-level strategy Identifies the portfolio of businesses that comprise the company and the ways in

which these businesses are related to each other. Diversification, vertical integration, consolidation and

geographic expansion are all examples of corporate-level strategies.

2. Competitive strategyCompanies try to achieve competitive advantagesfor the business they are in, which

allow them to differentiate its product or services from those of its competitors to increase market share.

Examples of competitive strategies include cost leadership and differentiation.


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3. Functional strategies Identify the basic course of action that each department will pursue in order to help

the business attain its competitive goals.

4. Strategic Fit Strategic planning experts have different views on fitting capabilities to the opportunities and

threats vs. stretching beyond capabilities to take advantage of an opportunity. The fit point of view, as

purported by Michael Porter, states that all of the firms activities must be tailored to or fit its strategy by ensuring

that the firms functional strategies support its corporate and competitive strategies .

VI. the top Managers Role in Strategic Planning Devising a strategic plan is top managements responsibility. Because the consequences of a poor choice can

be dire, few top managers would delegate the job of deciding how the company should match its internal

strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage.

VII. Departmental Managers Strategic Planning Roles It would be reckless for any top executive to formulate a strategic plan without the input of his or her lower-level

manager. Few people know as much about the firms competitive pressures, vendor capabilities, and concern

than do the companys department managers.

VIII. Strategic Human Resource ManagementStrategic human resource management means formulating and executing human resource policies and practices

that produce the employee competencies and behaviors the company needs to achieve its strategic aims.

The following steps demonstrate linking company-wide and HR strategies:

a) Evaluate Companys Competitive Environment

b) Formulate Business Strategy

c) Identify Workforce Requirements

d) Formulate HR Strategic Policies and Activities

e) Develop Detailed HR Scorecard Measures

X. St ra te gic HR Mana ge me nt Tools

XI . Bu il ding Yo ur Ow n Hi gh -P erfo rma nce Wo rk Sy st emA high-performance work system is a set of human resource management policies and practices

that promote organizational effectiveness.


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Examples of the typical components in a high-performance work system.

multi-skilled work teams;

empowered frontline workers; more training;

labor management cooperation;

commitment to quality;

Customer satisfaction.

HR Scorecard: A concise measurement system that shows the metrics the firm uses to measure HR activities,

measures the employee behaviors resulting from these activities, and measures the strategically relevant

organizational outcomes of those employee behaviors.

The ten steps involved in the HR scorecard approach are as follows:

1. Define the business strategy2. Outline the companys value chain.

3. Outline a Strategy Map

4. Identify the strategically required organizational outcomes

5. Identify the required workforce competencies and behaviors

6. Identify the required HR system policies and activities

7. Create the HR Scorecard

8. Choose HR Scorecard Measures

9. Summarize the Scorecard Measures in a Digital Dashboard

10. Monitor, Predict, Evaluate

CONDUCTING THE HUMAN RESOURCE MANAGEMENT AUDITTypes of HR Audits may include the following:

1) Compliance audits in particular, how well are we complying with relevant laws and regulations?

2) Best practices audits in particular, how do our recruitment practices; hiring practices, and so on

compare to those of best practices companies?

3) Strategic audits in particular, are our human resource management practices helping us to achieve our

strategic goals, by fostering the required employee behaviors?

4) Function-specific audits audits here concentrate on one or more specific human resource management

areas, such as compensation, or training and development.

The HR Audit ProcessWe can summarize the basic audit process as follows:

1) Decide on the scope of the audit.

2) Draft an audit team.

3) Compile the checklists and other tools available.

4) Know your budget.

5) Consider the legalities.

6) Get top management support.

7) Develop the audit checklist.

8) Use the questionnaire to collect data.


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9) Benchmark findings.

10) Provide feedback about the results to senior management.

11) Create action plans aimed at improving areas the audit singles out.


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Chapter 4 Job Analysis

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Job analysis The procedure for determining the duties and skill requirements of a job and the kind of person

who should be hired for the job by collecting the following types of information: work activities; human behaviors;

machines, tools, equipment, and work aids; performance standards; job context; and human requirements.

Job descriptionA list of a jobs duties, responsibilities, reporting relationships, working conditions, and

supervisory responsibilities one product of a job analysis.

Job specificationA list of a jobs human requirements, that is, the requisite education, skills, personality, and

so onanother product of a job analysis. Knowledge, Skills, Ability, Others (KSAO)

A. Uses of Job Analysis Information

B. Steps in Job Analysis


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Information Sources Format Advantages Disadvantages

Interview Individual employees

Groups of employees

Supervisors with

knowledge of the job

Structured

(Checklist)/

Unstructured

Quick, direct way to

find overlooked

information

Distorted information

Questionnaires Have employees fill out

questionnaires to describe

their job-related duties

and responsibilities

Structured

checklists /

Open-ended

questions

Quick and efficient

way to gather

information

from large numbers of

employees

Expense and time

consumed in preparing and

testing the questionnaire

Observation Observing and noting the

physical activities of

employees as they go

about their jobs by

managers.

Provides first-hand

information

Reduces distortion

of information

Time consuming

Reactivity response distorts

employee behavior

Difficulty in capturing

entire job cycle

Of little use if job involves a

high level of mental activity

Diary/Logs Workers keep a

chronological diary or log

of what they do and the

time spent on each activity

Draw a more complete

picture of the job

Employee participation

Distortion of information

Depends upon employees

to accurately recall their

activities

E. Quantitative Job Analysis Techniques

1. Position Analysis Questionnaire (PAQ) is a questionnaire used to collect quantifiable data concerning the

duties and responsibilities of various jobs, on five basic activities:

1) having decision-making/communication/social responsibilities,

2) performing skilled activities,

3) being physically active,

4) operating vehicles/equipment, and

5) processing information.


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2. Department of Labor Procedure (DOL) is a standardized method for rating, classifying, and comparing

virtually every kind of job based on data, people, and things.

III. Writing Job Descriptions

Job Identification

Job title

FLSA status section

Preparation date

Preparer

Job Summary

General nature of the job

Major functions/activities

RelationshipsReports to:

Supervises:

Works with:

Outside the company:

Responsibilities and Duties

Major responsibilities and duties (essential functions)

Decision-making authority

Direct supervision

Budgetary limitations

Standards of Performance and Working Conditions

What it takes to do the job successfully

IV. Writing Job Specifications

A. Specifications for Trained versus Untrained Personnel: Writing job specifications for trained employees is

relatively straightforward because they are likely to focus on traits like length of previous service, quality of

relevant training, and previous job performance. Writing job specifications for untrained employees is more

complex because they are more likely to specify qualities such as physical traits, personality, interests, or

sensory skills that imply some potential for performing or being trained to perform on the job.


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B. Job Specifications Based on Statistical Analysis

Basing job specifications on statistical analysis is more defensible, but a more difficult approach than the

judgmental approach. The aim of the statistical approach is to determine statistically the relationship between

1) some predictor or human trait such as height, intelligence, or finger dexterity, and

2) some indicator or criterion of job effectiveness.

VI. Job Analysis in a Worker-Empowered World

Job enlargement involves assigning workers additional same-level activities, thus increasing the number of

activities they perform.

Job rotation is systematically moving workers from one job to another.

Job enrichment involves redesigning jobs in a way that increases the opportunities for the worker to experience

feelings of responsibility, achievement, growth, and recognition.

Competency-Based Job Analysis

Competencies

Demonstrable characteristics of a person that enable performance of a job.

Reasons for Competency-Based Job Analysis

To support a high-performance work system (HPWS).

To create strategically-focused job descriptions.

To support the performance management process in fostering, measuring, and rewarding:

General competencies

Leadership competencies

Technical competencies


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Chapter 6 Employee Testing And Selection

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negligent hiring: Hiring workers with criminal backgrounds without proper safeguards.

Avoiding Negligent Hiring Claims

Carefully scrutinize information on employment applications.

Get written authorization for reference checks, and check references.

Save all records and information about the applicant.

Reject applicants for false statements or conviction records for offenses related to the job.

Balance the applicants privacy rights with others need to know.

Take immediate disciplinary action if problems arise.

II. Basic Testing Concepts

A. Reliability refers to the consistency of scores obtained by the same person when

retested with the identical or equivalent tests.

B. Validity refers to evidence that performance on a test is a valid predictor of subsequent

performance on the job.

1. Criterion Validity shows that scores on

the test (predictors) are related to job

performance.

2. Content Validity shows that the test

contains a fair sample of the tasks and skills

actually needed for the job in question.

Evidence-Based HR: How to Validate a

Test


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III. Types of Tests

A. Tests of Cognitive Abilities Cognitive tests include tests of general reasoning ability

(intelligence) and tests of specific mental abilities like memory and inductive reasoning.

1. Intelligence Tests are tests of general intellectual abilities ranging from memory,

vocabulary, and verbal fluency to numerical ability.

2. Specific Cognitive Abilities (aptitude) include inductive and deductive reasoning,

verbal comprehension, memory, and numerical ability.

B. Tests of Motor and Physical Abilities Employers may use various tests to measure such

motor abilities as finger dexterity, manual dexterity, and reaction time. They may also

want to measure such physical abilities as static strength, dynamic strength, body

coordination, and stamina.

C. Measuring Personality and Interests can be used to assess personal characteristics as

attitude, motivation, and temperament.

1. What Personality Tests Measure Tests measure basic aspects of an applicants personality, such as

introversion, stability, and motivation.

2. The "Big Five" Industrial psychologists emphasize five personality dimensions as they apply to

personnel testing: extraversion, emotional stability, agreeableness, conscientiousness, and openness to

experience.


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IV. Work Samples and Simulations

situational test: Requires examinees to

respond to situations representative of

the job.

miniature job training: Training

candidates to perform several of the jobs

tasks, and then evaluating the candidates

prior to hire.

V. Background Investigations and Other Selection Techniques

Reference checks Background employment checks Criminal records

Driving records Credit checksWhy?

To verify factual information providedby applicants

To uncover damaging information

Making Background Checks More Useful

1. Include on the application form a statement for applicants to sign explicitly authorizing a background check.2. Use telephone references if possible.3. Be persistent in obtaining information.4. Compare the submitted rsum to the application.5. Ask open-ended questions to elicit more information from references.6. Use references provided by the candidate as a source for other references.

Limitations on Background Investigations and Reference Checks

DefamationThe rejected applicant has various legal

remedies, including the right to sue for defamation.

Privacy Truth is not always a defense. Employees

can sue employers for disclosing true but

embarrassing private facts to those without a need toknow.

Supervisor Reluctance Rather than damage a

former employees chance for a job, supervisors may

sometimes give good references.

Employer Guidelines Defensible reference policies

include having only authorized managers provide

information about employees. Some employers only

provide dates of employment, salary, and position title

to reference seekers.


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The Polygraph and Honesty Testing

Employee Polygraph Protection Act of 1988, Generally prohibits polygraph examinations by all

private employers unless:

The employer has suffered an economic loss or injury.

The employee in question had access to the property.

There is a reasonable prior suspicion.

The employee is told the details of the investigation, as well as questions to be asked on the

polygraph test itself.

Private business exceptions:

Private security employees

Employees with access to drugs

Ongoing economic loss or injury investigations

Graphology (handwriting analysis) assumes that handwriting reflects basic personality tests.

Physical Exams Once an offer is made and the person is hired, a medical exam is usually the next step in the

selection process.

To verify that the applicant meets the physical requirements of the position.

To discover any medical limitations to be taken into account in placing the applicant.

To establish a record and baseline of the applicants health for future insurance or compensation

claims.

To reduce absenteeism and accidents.

To detect communicable diseases that may be unknown to the applicant.

Substance Abuse Screening Because drug abuse is a serious problem for employers, it is common practice

for most employers to conduct drug screening just before employees are formally hired.

Types of Screening

Before formal hiring

After a work accident

Presence of obvious behavioral symptoms

Random or periodic basis

Transfer or promotion to new position

Types of Tests

Urinalysis

Hair follicle testing


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Improving Productivity through HRIS:

1)"Knock out" applicants who do not meet minimum, non-negotiable job requirements;

2) Test and screen applicants online including Web-based skills testing, cognitive skills testing, and psychological

testing; and

3) discover "hidden talents" by identifying talents in the candidate pool that lend themselves to job matches at the

company that the applicant didn't know existed when he applied. Minimum functionality requirements of ATS are

discussed here.

expectancy chart: A graph showing the relationship between test scores and job performance for a large group

of people.

interest inventory: A personal development and selection device that compares the persons current interests

with those of others now in various occupations so as to determine the preferred occupation for the individual.


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Chapter 11 Establishing Strategic Pay Plans

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Comparing Performance Appraisal and Performance Management

Performance appraisal is part of a total integrated process of performance management, which consolidates goal

setting, performance appraisal, and development into a single, common system, the aim of which is to ensure that

the employee's performance is supporting the company's strategic aims.

Defining the Employee's Goals and Work Standards

At the heart of performance management is the idea that employees effort should be goal directed, which

involves clarifying expectations and quantifying them by setting measurable standards for each objective.

Why Appraise Performance


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A. Realistic Appraisals It is important that a manager be candid when a subordinate is underperforming.

The Supervisor's Role The HR Departments Role

The Supervisors Role

Usually do the actual appraising

Must be familiar with basic appraisal techniques

Must understand and avoid problems that can

cripple appraisals

Must know how to conduct appraisals fairly

Serves a policy-making and advisory role.

Provides advice and assistance regarding the

appraisal tool to use. Trains supervisors to improve their appraisal

skills.

Monitors the appraisal system effectiveness and

compliance with EEO laws.

Steps in Appraising Performance

define the job;

appraise performance; and

provide feedback.

Performance Appraisal Methods

1) Graphic Rating Scale Methodis the simplest and very popular technique. A scale is used to list traits and

a range of performance for each, then the employee is rated by identifying the score that best describes

his/her performance level for each trait. Managers must decide which job performance aspects to measure.

2) Alternation Ranking Method is where employees are ranked from best to worst on a particular trait,

choosing highest, then lowest, until all are ranked. Figure 9-6 shows an example of this method.

3) Paired Comparison Method involves ranking employees by making a chart of all possible pairs of

employees for each trait and indicating which the better employee of the pair is.4) Forced Distribution Method is where predetermined percentages of rates are placed in various

performance categories; similar to grading on a curve.

5) Critical Incident Method is where a supervisor keeps a record of uncommonly good and/or undesirable

examples of an employees work-related behavior, and reviews it with the employee at predetermined times.

6) Narrative Forms involve rating the employees performance for each performance factor, writing down

examples and an improvement plan, aiding the employee in understanding where his/her performance was

good or bad, and summarizing by focusing on problem solving.

7) Behaviorally Anchored Rating Scales (BARS)combines the benefits of narratives, critical incidents, and

quantified scales, by anchoring a scale with specific behavioral examples of good or poor performance.


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The five steps in developing a BARS are:

1) generate critical incidents;

2) develop performance dimensions;

3) reallocate incidents;

4) scale the incidents; and

5) develop final instrument.

The advantages of BARS include

a more accurate gauge;

clearer standards;

feedback;

independent dimensions; and

consistency.

8) Management by Objectives (MBO) requires the manager to set specific measurable goals with each

employee and then periodically discuss his/her progress toward these goals. The process consists of six

steps: 1) set the organization's goals; 2) set departmental goals; 3) discuss departmental goals; 4) define

expected results; 5) performance reviews; and 6) provide feedback.

9) Computerized and Web-Based Performance Appraisal generally enables managers to keep notes on

subordinates during the year, to rate employees on a series of performance traits, and then generate written

text to support each part of the appraisal. About 1/3 of employers use online performance management tools

for at least some employees.

10) Electronic Performance Monitoringthese systems use computer network technology to allow managers

access to their employees computers and telephones.

11) Appraisal in Practicethe most effective appraisal forms often merge several approaches.


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Dealing with Performance Appraisal Problems

1. Unclear Standards Ambiguous traits and degrees of merit can result in an unfair appraisal.

2. Halo Effect the influence of a raters general impression on ratings of specific qualities can be a problem.

3. Central Tendency where supervisors stick to the middle of the rating scales, thus rating everyone

average.

4. Leniency or Strictness supervisors have the tendency to rate everyone either high or low.

5. Bias the tendency to allow individual differences such as age, race, and sex to affect the appraisal ratings

employees receive, is a problem.

Who Should Do the Appraising?

1. The Immediate Supervisor

2. Peer Appraisals

3. Rating Committees

4. Self-Ratings

5. Appraisal by Subordinates

6. 360-Degree

The Appraisal Interview is an

interview in which the supervisor

and subordinate review the

appraisal and make plans to

remedy deficiencies and

reinforce strengths.


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How to Conduct the Interview

Prepare for the interview by

assembling the data, preparing the

employee, and choosing the time

and place. Be direct and specific,

using objective examples; dont get

personal; encourage the person to

talk; and dont tiptoe around.

Purposes of a Written Warning

To shake your employee out of bad habits.

To help you defend your rating, both to your own boss and (if needed) to the courts.

A Written Warning Should:

Identify standards by which employee is judged.

Make clear that employee was aware of the standard.

Specify deficiencies relative to the standard.

Indicate employees prior opportunity for correction.

Performance Management

is the continuous process of identifying,

measuring, and developing the performance of

individuals and teams and aligning their

performance with the organizations goals

Performance management's emphasis on the

integrated nature of goal setting, appraisal, and

development reflect Total Quality Management

concepts.

Second, it reflects what many studies have

shown that traditional performance appraisals

are useless and counter-productive.

Third, it is a process that recognizes that every

employees efforts must focus on helping the

company to achieve its strategic goals.


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Improving Productivity through HRIS:

Assign financial and nonfinancial goals to each teams activities along the strategy map chain of activities

leading up to the companys overall strategic goals.

Inform all employees of their goals.

Use IT-supported tools like scorecard software and digital dashboards to continuously monitor and

assess each teams and employees performance.

Take corrective action at once.

Employee compensation refers to all forms of pay

or rewards going to employees, which include direct

financial payments and indirect payments. Direct

financial payments include wages, salaries,

incentives, commissions, and bonuses. Indirect

payments include financial benefits, like employer-

paid insurance and vacations.

Corporate Policies, Competitive Strategy, and Compensation The basic thrust in pay plans today is to

produce an aligned reward strategy to create compensation plans that guide employee behaviors in the desired,

strategic direction. Distinguishing between high and low performers is a policy issue, as is seniority-based pay.

Salary Compressionmeans longer-term employees salaries are lower than those of workers entering the firm

today. To raise salaries, employers can give raises based on longevity (plus skills), install a more aggressive

merit pay program, or authorize supervisors to recommend equity adjustments for selected employees who are

both highly valued and victims of pay compression.

Geography Cost of living differences between cities can be considerable. There are several ways that

employers handle cost of living differentials.

External equity refers to pay comparing favorably

with rates in other organizations.

Internal equity refers to employees viewing their pay

as equitable given other pay rates in the organization.

Individual equity refers to the fairness of an

individuals pay as compared with what his/her

coworkers are earning for the same or very similar

jobs in the company. Last,

procedural equity refers to the perceived fairness of

the processes and procedures used to make decisions

regarding the allocation of pay


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Establishing Pay Rates

Step1: The Salary Survey

Step 2: Job Evaluation


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How to Evaluate Jobs

III. Pricing Managerial and Professional Jobs

Elements of Executive Pay Executive Compensation emphasizes performance incentives more than

do other employees pay plans, since organizational results are likely to reflect executives contributions

more directly.

Compensating Professional Employees Most employers use a market-pricing approach instead of

job evaluation, since its not easy to identify factors and degrees of factors which meaningfully

differentiate among the values of professional work.

IV. Competency-Based PayThe company pays for the employees range, depth, and types of skills and knowledge,

rather than for the job title he or she holds. Three reasons are given:

1) in a high performance work system you want employees to be enthusiastic about learning and moving

among other jobs;

2) you can enhance your strategic plans by paying for skills that are critical for those plans; and

3) measurable skills, knowledge, and competencies are at the heart of performance management

processes.


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Competency-Based Pay contains four main components:

1) a system that defines skills and processes for tying those skills to pay;

2) a training system for acquiring skills;

3) competency testing system; and

4) a work design that allows employees to move among jobs.

Competency-Based Pay: Pros and Cons

Pros

Higher quality

Lower absenteeism

Fewer accidents

Cons

Pay program implementation problems

Costs of paying for unused knowledge, skills, and behaviors

Complexity of program

Uncertainty that the program improves productivity

V. Other Compensation Trends

A. Broadbanding means collapsing salary grades

and ranges into just a few wide levels or bands.

Pros and Cons Broadbanding injects greater flexibility into employee assignments, and allows an

employee to move up or down along the pay scale without changing pay ranges. Broadbanding can,

however, eliminate a sense of permanence in a set of job responsibilities. This is particularly difficult

for new employees.

B. Comparable Worth refers to the requirement to pay equal wages for jobs of

comparable value to the employer rather than strictly equal value.

1. The Gunther Supreme Court Case involved Washington County, Oregon, prison

matrons who claimed sex discrimination. Washington County finally agreed to pay

35,000 employees in female-dominated jobs almost $500 million in pay raises over 7

years to settle the suit.

2. The Pay Gap Although the gap is narrowing a bit, women still earn only about 77%

as much as men. Education may reduce the wage gap.

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