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ORGANIZING PEOPLE

Other Teaching Tools 9.2

Video Notes 9.3

Brief Chapter Outline and Learning Goals 9.4

Lecture Outline and Lecture Notes 9.6

Notes for End-of-Chapter Materials 9.22

REVIEW QUESTIONS 9.22

DISCUSSION EXERCISE 9.1 One Company’s Delicate Balancing Act 9.22

DISCUSSION EXERCISE 9.2 Smashing the Clock 9.23

Career Management Notes 9.25

Study Skills Notes 9.28

Lecture Links 9.29

LECTURE LINK 9-1 Finding Google People 9.29

LECTURE LINK 9-2 Background Checks: Security and 9.30 Privacy Concerns

LECTURE LINK 9-3 Interview Blunders 9.31

LECTURE LINK 9-4 CellularSouth’s Katrina Teams 9.32

Bonus Internet Exercise 9.34

BONUS INTERNET EXERCISE 9-1 Job Search Via the Internet 9.34

Critical Thinking Exercise 9.35

CRITICAL THINKING EXERCISE 9-1 Expanding the Workforce 9.35

Bonus Cases 9.38

BONUS CASE 9-1 Should You Hire a Former Employee? 9.38

BONUS CASE 9-2 The Department Store Dilemma 9.40

BONUS CASE 9-3 Creating Cross-Functional Teams 9.42

9.1

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APT

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OTHER TEACHING TOOLS

For a description of each of these valuable teaching tools, please see the Preface in this manual.

Student Learning ToolsStudent Online Learning Center (OLC) (www.mhhe.com/ghillyermanagement)Student Study GuideSpanish Translation Glossary (OLC)Spanish Translation Quizzes (OLC)

Instructor Teaching ToolsInstructor Online Learning Center (www.mhhe.com/ghillyermanagement)Annotated Instructor’s Resource ManualIRCD (Instructor’s Resource Manual, Test Bank, PowerPoints, EZtest)Asset Map PageOutPowerPoint Presentations (on IRCD and OLC)Test Bank Management at the Movies (DVD)Management Videos on DVD Enhanced Cartridge optionSpanish Translation Glossary (OLC)

9.2 MANAGEMENT: A REAL WORLD APPROACH: Instructor’s Resource Manual

VIDEO NOTES

Two video series are available for use with MANAGEMENT: A REAL-WORLD APPROACH.

Management at the Movies This innovative video collection includes video clips from twenty of the best Hollywood films.

The Video Notes section of this Instructor’s Resource Manual (beginning on page V.1) provides In-structor’s Teaching Notes for each of the video segments, along with Student Materials keyed to chapter concepts.

MOVIE 5. “Gung Ho” (“Assan Motors”) (1:13) This clip shows the differences between American and Japanese company cultures.

MOVIE 14. “13 Going on 30” (3:42) This video clip is a fun example of the stages of group development. It shows a group spon-

taneously becoming involved in a dance to Michael Jackson’s “Thriller.”

Management Videos on DVDAlso included are twenty videos geared to individual chapter topics. The teaching notes for these

videos are also included in the Video Notes section of this Instructor’s Resource Manual, beginning on page V.50.

VIDEO 9: “New Belgium Brewery’s Organizational Culture” (10:54)New Belgium Brewery’s approach to employees is explored and examined in terms of how

it organizes its workforce.

CHAPTER 9: Organizing People 9.3

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BRIEF CHAPTER OUTLINE AND LEARNING GOALS

CHAPTER 9

Organizing People

I. STAFFINGLEARNING OBJECTIVE 1Outline the human resource planning process.

II. JOB ANALYSISLEARNING OBJECTIVE 2Define job analysis, job description, job specifi-cation, and skills inventory.

A. Skills InventoryB. ForecastingC. TransitionD. Legal Consideration

III. RECRUITMENTA. Legal Considerations in the Recruitment Process

IV. SELECTIONA. Who Makes the Decision?B. Legal Considerations in the Selection Process

LEARNING OBJECTIVE 3Distinguish between affirmative action and re-verse discrimination.

C. Selection ProcedureD. TestingE. Background and Reference Checks

V. EMPLOYMENT INTERVIEWA. Types of InterviewsB. Problems in Conducting InterviewsC. Conducting Effective InterviewsD. Personal Judgment


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VI. TRANSFERS, PROMOTIONS, AND SEPARATIONS

VII. UNDERSTANDING WORK GROUPS AND TEAMSLEARNING OBJECTIVE 4Explain formal and informal work groups.

A. Formal Work GroupsB. Informal Work GroupsC. Group NormsD. Group Behavior

1. Group Cohesiveness2. Group Conformity3. GroupthinkLEARNING OBJECTIVE 6Define Groupthink.

E. The Importance of TeamsF. Influencing Work GroupsG. Building Effective Teams

LEARNING OBJECTIVE 5Discuss the concept of team building.

H. Creating GroupsI. Building TrustJ. Influencing Group Cohesion and ConformityK. Phases in the Life of TeamsL. Quality CirclesM. Self-Directed Work TeamsN. Virtual Work TeamsO. Groups and LeadersP. Gaining AcceptanceQ. Encouraging Participation


LECTURE OUTLINE AND LECTURE NOTES

THE WORLD OF WORK Kevin Makes a Suggestion (Text pages 234-235)

Kevin has just been officially promoted to shift manager following his assignment on the schedul-ing project. He announces to Tony that the group is working on some new ideas to help the restaurant with food ordering and inventory, and they would report the outcome to Tony and ask for spending ap-proval. Tony has some initial reservations but gives Kevin approval for the group to meet and develop ideas.

1. Why would Tony’s first reaction to Kevin’s idea be one of panic?

It is a normal response to feel threatened when you feel less control over a situation In this case, Tony is not sure what the group is doing and what the results will be. Tony also has to consider that once the informal group forms and establishes unity, it could cause problems down the line if he disagrees with their views and ideas about how the restaurant should be run. However, Kevin is working through the process, learning new management skills; this factors into the decision to let them come up with new ideas. Tony realizes that they may get excited about and improve the overall performance of the store.

2. Why is Kevin supporting his people in this manner? What’s in it for him?

Kevin is not formally a manager just yet, and it is easier to work more closely with employees when you are not formally their boss. Kevin has a unique opportunity to learn how to get positive results, working through a team. If the outcome is well received, it enhances his chances of being promoted to manager status. Finally, Kevin is also learning how much better an operation can run if employees are co-hesive and work towards a common cause. It makes the job more exciting and more fun.

3. Do you think Tony is making a mistake here? Why or why not?

Tony does have some reservations; because once groups are formed, they can take on their own group personality. Each group member forms a trusting bond that unites them, but this can form into a groupthink mentality. While Tony is excited about the enthusiasm and effort the group seems to have de-veloped, he has to monitor how the group evolves.

4. Would this idea work at your company? Why or why not?

This is a good time to address all the particulars of how formal and informal groups and teams form, why they happen, what are the advantages of their existence, and what their disadvantages may be.


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LECTURE OUTLINE LECTURE NOTES

I. STAFFINGLEARNING OBJECTIVE 1Outline the human resource planning process. (Text pages 236)

A. The goal of staffing is to obtain the best available people for the organization and to develop the skills and abilities of those people.

B. Because the human resources department has traditionally conducted staffing activi-ties they have been given lower priority.

POWERPOINT 9-1Chapter Title (Refers to text page 234)

POWERPOINT 9-2Learning Objectives (Refers to text page 235)

POWERPOINT 9-3Staffing and Job Analysis(Refers to text page 235)


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II. JOB ANALYSISLEARNING OBJECTIVE 2Define job analysis, job description, job speci-fication, and skills inventory. (Text pages 236-237)

A. JOB ANALYSIS is the process of deter-mining, through observation and study, the relevant information relating to the nature of a specific job.

1. The results of job analysis are a job description and a job specification.

2. A JOB DESCRIPTION is a written statement that identifies the tasks, duties, activities, and performance results required in a particular job.

3. A JOB SPECIFICATION is a written statement that identifies the abilities, skills, traits, or attributes necessary for successful performance in a particular job.

4. The job description identifies the characteristics of the job.

5. A job specification identifies the qualifications of an individual needed.

B. Skills Inventory 1. Job analysis defines the organization’s

current human resource needs. 2. A SKILLS INVENTORY consolidates

information about the organization’s current human resources.

3. Categories of information needed in a skills inventory:

a. education, job experience, and training skills

b. special qualifications c. salary and job history

POWERPOINT 9-4Job Analysis (Refers to text pages 236-237)

TEXT REFERENCECareer Management Box: Positive Attitude and Its Importance A positive attitude can have positive effects. (Box in text on page 237.) An additional exercise and discussion is available in this chapter on page 9.25.



III. RECRUITMENTA. RECRUITMENT involves seeking and

attracting a supply of people from which qualified candidates for job vacancies can be selected.

1. The organization’s best source for fill-ing vacancies is its own employees.

a. Promotion from within can work in growing organizations.

b. But internal sources are often inadequate.

2. External sources include employment agencies, consulting firms, employee referrals, and employment advertise-ments.

3. A fast-growing area is TEMPORARY HELP, people working for employment agencies who are subcontracted out to businesses at an hourly rate for a pe-riod of time specified by the business.

a. The agency pays the salary and benefits of the temporary help.

b. The organization pays the employ-ment agency an agreed-upon fig-ure for the services.

c. Temporary employees can be used when an organization is expanding and also when it is downsizing.

d. However, temporary employees lack commitment to the organiza-tion.

4. EMPLOYEE LEASING COMPANIES: a. provide permanent staff at

TEXT FIGURE 9.3Advantages and Disadvan-tages of Internal and Exter-nal Sources (Text page 243)

POWERPOINT 9-7Recruitment (Refers to text pages 242-243)

BONUS INTERNETEXERCISE 9-1Job Search Via the InternetThis Internet exercise ex-plores online job search en-gines such as monster.com. See complete exercise on page 9.34 of this manual.

BONUS CASE 9-1Should You Hire a Former Employee?Former employees some-times ask employers to hire them back. Is this a good idea? See complete case, dis-cussion questions, and sug-gested answers on page 9.38 of this manual.


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LECTURE OUTLINE LECTURE NOTEScustomer companies

b. issue the workers’ paychecks c. take care of personnel matters d. ensure compliance with workplace

regulationse. provide various employee benefits

B. Legal Considerations in the Recruit-ment Process

1. The courts have ruled some methods of recruitment to be discriminatory.

2. The Equal Employment Opportunity Commission (EEOC) provides sugges-tions to help eliminate discrimination in recruitment.

3. Growth-oriented companies use diver-sity as a positive influence on staffing.

IV. SELECTIONA. The selection process involves choosing

from applicants those most likely to suc-ceed in the job.

B. Who Makes the Decision? 1. Often the human resource department

does the initial screening, but leaves the final selection to the department manager.

2. Sometimes the HR department is responsible for both screening and selection.

3. Another approach is to involve peers in the selection decision.

C. Legal Considerations in the Selection ProcessLEARNING OBJECTIVE 3

POWERPOINT 9-8Selection (Refers to text page 244)

POWERPOINT 9-9Selection (continued)(Refers to text pages 244-


LECTURE OUTLINE LECTURE NOTESDistinguish between affirmative action and re-verse discrimination. (Text pages 244-246)

1. Many laws prohibit discrimination in employee selection.

2. An AFFIRMATIVE ACTION PLAN (AAP) is a written document outlining specific goals and timetables for reme-dying past discriminatory actions.

a. All federal contractors that meet certain conditions are required to develop written AAPs.

b. The Office of Federal Contract Compliance Program (OFCCP) monitors these programs.

3. Organizations without AAPs should identify employment practices that have discriminatory effects.

4. REVERSE DISCRIMINATION is pro-viding preferential treatment for one group (e.g., minority or female) over the other group (e.g., which male) rather than merely providing equal opportunity.

246)

TEXT FIGURE 9.4EEOC’s Suggestions for Developing an Affirmative Action Plan (Text page 245)

ETHICAL MANAGEMENT (Text page 245)

An employee working in the HR department overhears an employee discussing a personal com-mitment to purchase a new house to provide space for a new child in the family. But the HR employee also knows of plans to make personnel changes, including the position of this same person. Should this personal information be communicated to the director of HR?

Sharing personal information about employees has many implications and therefore has to be handled with care. Hearing information second hand and assuming it is true can be treacherous. In this case, you have to consider what loyalty is – are you loyal to your employer or do you place more value on loyalty to a coworker? Sharing your inside information with the coworker could cause trouble for you and your chances for advancement in the company. Discussing the situation with your boss in HR is also problematic. Personnel decisions should be made based on the work performance of an individual, not his or her family situation. Imagine the ethical implications of sparing a male worker and laying off a working mother instead. Would your boss want to know this information? Would it make a difference?


LECTURE OUTLINE LECTURE NOTESIs the layoff a done deal, or just a trial balloon? How are you going to feel about yourself for each ac-tion?

D. Selection Procedure 1. The preliminary screening and prelimi-

nary interview eliminate candidates who are obviously not qualified for the job.

E. Testing 1. TESTS provide a sample of behavior

that is used to draw inferences about the future performance of an individ-ual.

a. APTITUDE TESTS measure a person’s capacity or potential to learn.

b. PSYCHOMOTOR TESTS mea-sure a person’s strength, dexterity, and coordination.

c. JOB KNOWLEDGE TESTS mea-sure the job-related knowledge possessed by a job applicant.

d. PROFICIENCY TESTS measure how well the applicant can do a sample of the work to be performed.

e. INTEREST TESTS determine how a person’s interests compare with the interests of successful people in a specific job.

f. PSYCHOLOGICAL TESTS attempt to measure personality characteristics.

g. POLYGRAPH TESTS, known as lie detector tests, record physical changes in the body as the test

TEXT FIGURE 9.5Steps in the Selection Process (Text page 246)

POWERPOINT 9-10Selection (continued)(Refers to text pages 246-248)


LECTURE OUTLINE LECTURE NOTESsubject answers a series of ques-tions.

2. Employment tests must be valid and reliable.

a. TEST VALIDITY refers to the extent to which a test predicts a specific criterion.

b. TEST RELIABILITY refers to the consistency or reproducibility of the results of a test.

3. There are three methods to determine test reliability: test-retest, parallel forms, and split halves.

F. Background and Reference Checks 1. Contacting personal and academic ref-

erences has limited value. 2. Previous employers can supply the

most objective information, but usually provide only the following information:

a. whether the applicant worked there

b. what the employee’s dates of employment were

c. what position he or she held 3. If a job applicant is rejected because

of information in a credit report, the ap-plicant must be given the name and address of the credit reporting agency.

PROGRESS CHECK QUESTIONS (Text page 248)

1. What are the six broad categories of information that may be included in a skills inventory?

2. Explain the human resource planning (HRP) process.3. Summarize the seven significant government bills

and laws that have affected human resource planning.4. What are the six general categories of tests that orga-


LECTURE OUTLINE LECTURE NOTESnizations use in the selection process?

V. EMPLOYMENT INTERVIEWA. The employment interview supplements

information gained in other steps.B. Types of Interviews 1. The STRUCTURED INTERVIEW is an

interview conducted using a predeter-mined outline.

a. The interviewer maintains control of the interview so all information is covered systematically.

b. Use of structured interviews in-creases reliability and accuracy.

c. In the SEMISTRUCTURED INTERVIEW, the interviewer pre-pares the major questions in ad-vance, but has the flexibly to use other techniques.

d. The SITUATIONAL INTERVIEW uses projective techniques to put the prospective employee in ac-tion situations that might be encountered on the job.

2. UNSTRUCTURED INTERVIEWS are conducted without a predetermined checklist of questions.

a. This type of interview is suscepti-ble to the personal biases of the interviewer.

b. However it provides a more re-lated atmosphere.

3. Other interviewing techniques: a. The STRESS INTERVIEW is

designed to place the interviewee

LECTURE LINK 9-3Interview BlundersIn a survey, executives re-vealed some of the more un-usual interviews they had conducted. See complete lec-ture link on page 9.30 of this manual.

POWERPOINT 9-11Employment Interview(Refers to text pages 248-249)


LECTURE OUTLINE LECTURE NOTESunder pressure.

b. In the BOARD (OR PANEL) INTERVIEW, two or more inter-viewers conduct the interview.

c. The GROUP INTERVIEW ques-tions several interviewees together in a group discussion.

C. Problems in Conducting Interviews 1. The reliability and validity of most

interviews is questionable. 2. Interview pitfalls: a. Interviewers’ personal biases can

play a role. b. The HALO EFFECT occurs when

the interviewer allows a single prominent characteristic to domi-nate judgment of all other traits.

c. The behavior of interviewees may not be the same when they are on the job.

POWERPOINT 9-12Employment Interview (continued) (Refers to text pages 249-251)

CASE INCIDENT 9.1The Employment Interview (Text page 250)

Jerry Sullivan is interviewing candidates to replace an employee at a large insurance company. While he expects to interview Barbara Riley at her scheduled 9 a.m. interview, he gets a call from his boss (just returning from vacation), and talks with the boss until 9:30 a.m. At 9:30 a.m. he invites Bar-bara in to his office for the interview and takes another call from IBM regarding some equipment deliv-ery. Now the interview begins at 9:40 a.m. After a brief discussion with Ms. Riley about her education and her comment that this would be her first full time job, the next schedule interview person arrives and cuts their meeting short.

1. Outline the inadequacies of this interview.

Interviewing is an extremely nerve-racking activity for many people for many reasons. Many people are very nervous and may not give an accurate reflection of their ability to do the respective job. In this interview, the interviewer’s job is to find the best applicant through a structured, careful plan of


LECTURE OUTLINE LECTURE NOTESquestions to determine the applicants potential fit for the job. In this case, the interviewer did not make the applicant at ease because of his lateness and other distractions, did not have a systematic list of fair questions to judge the applicant’s potential for the job, and finished the interview abruptly with no sense of what the company was looking for or and how this position might relate to her qualifications.

The most egregious interview error was the final questioning by Jerry. He asked if she were married and if she had children. Both questions are inappropriate and violate basic equal employment opportunity regulations. The fact that Barbara has children does not make her more or less likely to be a good employee. If Jerry wanted to know about her flexibility, he could have asked if she would be able to travel for the job. That question deals with work performance, not personal information.

2. What information did Jerry learn?

Jerry did not find out any real information about the applicant that he had not already learned based on their short conversation on her education. He learned nothing about any job-related experiences or educational achievements that might qualify her for the job. Jerry did ask personal questions relating to her marital status and family obligations that were not appropriate because they do not relate directly to her qualifications for the job that he is seeking to fill.

3. What do you think of Jerry’s last questions?

The personal question again does not relate to the candidate’s ability to directly handle the job duties, and it should not be asked. The questions have no relevance on the person’s ability to do the as-signed job.

4. What questions would you have asked? Why?

To learn more about the applicant, students should be able to give a list of questions that the feel would be good interview questions, such as the applicants strengths and weaknesses, specifics of her ed-ucational degree, type of job she would like to have, size of company she would like to work for, goals for the next three to five years, etc.

D. Conducting Effective Interviews 1. Interviewers should be carefully

selected and trained. 2. The interview should be planned to

make sure that all questions are asked.

3. The interviewer should try to put the applicant at ease.

4. The interview facts should be recorded immediately.

5. The effectiveness of the interview

POWERPOINT 9-13Employment Interview (continued) (Refers to text pages 251-252)

TEXT REFERENCEStudy Skills Box: Importance of Good Communication Skills!Many business situations call for good communication


LECTURE OUTLINE LECTURE NOTESprocess should be evaluated.

E. Personal Judgment 1. The final step is to make a personal

judgment about which individual to select for the job.

2. When none of the applicants is satis-factory, adjustments must be made.

skills. (Box in text on page 252.) An additional exercise and discussion is available in this chapter on page 9.28.

VI. TRANSFERS, PROMOTIONS, AND SEPARATIONSA. A transfer involves moving an employee to

another job at approximately the same level in the organization with basically the same pay and status.

1. Planned transfers can be an excellent development technique.

2. They can also balance workloads between departments.

3. Transferring a “problem employee” to an unsuspecting manager can be a problem.

B. A promotion moves an employee to a job involving higher pay, higher status, and higher performance requirements.

1. Most organizations use merit and seniority as promotion criteria.

2. Union contracts require that seniority be considered in promotions.

3. Basing promotions on merit can reward performance.

4. However, success in one job does not guarantee success in another job.

C. A separation involves either voluntary or in-voluntary termination of an employee.

POWERPOINT 9-14Transfers, Promotions, and Separations (Refers to text pages 252-253)


LECTURE OUTLINE LECTURE NOTES 1. In voluntary separation, the exit

interview can help determine why the employee is leaving.

2. Involuntary separations involve termi-nations and layoffs.

a. Layoffs occur when there is not enough work for all employees.

b. A termination occurs when an em-ployee is not performing his or her job.

c. Terminations are costly.

PROGRESS CHECK QUESTIONS (Text page 253)

5. Explain the six most common types of interviews.6. What is the halo effect?7. What five things should you do to increase the effec-

tiveness of the interviewing process?8. “Terminations should only be made as a last resort.”

Do you agree with this statement? Why or why not?


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VII. UNDERSTANDING WORK GROUPS AND TEAMS

LEARNING OBJECTIVE 4Explain formal and informal work groups. (Text pages 253-256)

A. Formal Work Groups 1. Management establishes FORMAL

WORK GROUPS established and for-mally recognized by the organizing function of management.

2. A task force is a formal group that has a single goal.

3. The command or functional group con-sists of a manager and all the employees he or she supervises.

B. Informal Work Groups 1. INFORMAL WORK GROUPS are

groups that result from personal con-tacts and interactions among people and are not formally recognized by the organization.

a. In the interest group members share a purpose or concern.

b. Friendships emerge naturally and fill important social needs.

2. Informal work groups affect productiv-ity, morale, and managerial success.

a. They can create a shared sense of loyalty.

b. When employees band together to share fears or complaints, informal groups work against organiza-tional goals.

3. Informal groups are very powerful. a. The Hawthorne Studies discov-

POWERPOINT 9-15Understanding Work Groups and Teams(Refers to text pages 253-254)


CASE INCIDENT 9.2One of the Gang? (Text page 262)

Ruth has been selected to be the supervisor of a work group of which she was previously a mem-ber. Her former group was noted for its nonproductivity in the department. Ruth understands the thinking of this informal group and now is being asked to supervise them and make the situation a productive one.

1. Did the company make a good selection in Ruth? Explain.

In many ways it has. By identifying with the true spirit of this group, she can work directly to change the lackluster attitude toward their jobs. The overall departmental production needs to be changed, and Ruth could be the right selection to make this happen.

2. What suggestions would you make to Ruth?

Informal groups become single-minded and control the actions of all members in a process called group conformity. This can lead to a level of groupthink, in which individuals lose their ability to think as individuals. Ruth understands this process and the need to change the psyche of the group. Her first step will be making the group understand the potential positives for the group as a whole if their attitudes change to working towards some new, common goals rather than functioning as an outcast group with a lot of talent.

3. How do you think the team will react to “one of their own” as team leader?

Initially, with reservations. If they feel Ruth has “sold out” to management, they may not want to respond to her in the new role. However, if Ruth is able to maintain a sense of group identity and facili-tate a role reversal, she may have more success. Ruth may want to consider ways to highlight the condi-tions and situations of this group (Hawthorne Effect). Giving special attentions to groups of workers can have a more effective outcome.

4. Are informal work groups always opposed to working toward organizational goals? Explain.

Not in today’s work environment. Workers have many challenges to face, both personal and pro-fessional, and if they can make the work environment a productive one, it can be a source of positive in-fluence on their life as a whole.

THE WORLD OF WORKThe Taco Barn Survives the Experiment (Text page 264)

Taco Barn employees present their ideas on inventory and food ordering to Tony and do an out-standing job, making their case for the new improvements. Tony is impressed and plans to send the report on the proposed changes to Dawn for her input.

1. Why didn’t Tony come up with all these ideas? If they were obvious to his crew, surely they should have been obvious to him as the unit manager?

Work teams have the ability to collaborate and find new ways of doing same tasks. When a col-lective sense of ownership and trust is formed among workers, they can divert their energy into activities that can form a motivated work team able to help solve schedules, operational decisions, set priorities, job duties, and share leadership responsibilities.


2. How do you think this project will change the atmosphere at Tony’s Taco Barn?

Whenever employees are part of the solution, there is a sense of pride and ownership in the work environment. Employees are more often effective when they are directly tied into a work group that they have a real connection to than when they are isolated, taking orders from a direct supervisor.

3. Do you think Dawn will adopt some of these ideas? Why or why not?

Part of management duties is to find productivity in workers and to find new ways to get the same results at lower costs. In this case, Dawn should be able to see how employee productivity affects bottom line costs and take pride in passing on the employee successes that are an extension of her indirect super-vision.

4. Would you want the opportunity to be involved in a project like this? Why or why not?

Great chance to see how students react to work group situations by learning who would be leader types and how each student looks at the team concept.


NOTES FOR END-OF-CHAPTER MATERIAL

REVIEW QUESTIONS

1. Describe the relationship between job analysis, skills inventory, and human resource planning.

Job analysis is the process of determining, through observation and study, the relevant informa-tion relating to the nature of a specific job. The results of job analysis are a job description and job speci-fication. The job description identifies the characteristics of the job. A job specification identifies the qualifications of an individual needed. Job analysis defines the organization’s current human resource needs. A skills inventory consolidates information about the organization’s current human resources. Af-ter considering the current status, the organization must consider anticipated changes in the current work force. Human resource planning (HRP), also known as personnel planning, involves getting the right number of qualified people into the right job at the right time.

2. What is equal employment opportunity?

Title VII of the Civil Rights Act of 1964 is designed to eliminate employment discrimination re-lated to race, color, religion, sex, or national origin. The Civil Rights Act established guidelines for equal employment opportunity (EEO), the right of all people to work and to advance on the bases of merit, abil-ity, and potential. The focus of EEO is to identify and eliminate discriminatory employment practices, any artificial, arbitrary, and unnecessary barriers to employment.

3. Discuss some common pitfalls in interviewing.

The reliability and validity of most interviews is questionable. Interview pitfalls include personal biases, the halo effect, and over generalization. Interviewers’ personal biases can play a role. The halo ef-fect occurs when the interviewer allows a single prominent characteristic to dominate judgment of all other traits. Also, the behavior of interviewees may not be the same on the job.

4. Outline the conditions under which individual members of a group tend to conform to group norms.

Group norms are the informal rules a group adopts to regulate the behavior of group members. Many factors affect group cohesiveness.

(1) The more cohesive a group, the more likely members are to follow group norms.(2) The smaller the group, the more cohesive it is likely to be.(3) The more success a group experiences, the more cohesive it becomes.(4) High-status groups tend to be more cohesive than other informal work groups.(5) Outside pressures can increase group cohesiveness.(6) A stable membership and easy lines of communication improve group cohesiveness.(7) Physical isolation from other employees may increase group cohesiveness.

DISCUSSION EXERCISE 9.1

One Company’s Delicate Balancing Act

Baxter Company is thriving and surviving by allowing its workers to work nontraditional work schedules so that they can stay involved in their other responsibilities with their own families, children


and spouses. This is a method of achieving success for employees and management and will be the con-tinued way of operating for this company going forward.

1. Why would the Baxter Corporation make the effort to restructure in order to manage the work-life tensions of its employees? What does it stand to gain?

Nontraditional work schedules are the norm now, not the exception. Baxter Corp. is the perfect example of what this new work environment is like. Allowing employees to work nontraditional sched-ules based on their juggling of children, spouses, and parent/family conditions allows them the flexibility to still be part of their own families’ lives while maintaining their own job schedules. This has proved to be productive in the new work environment as these particular workers, through all their busy daily schedules, still put in more work hours than normal, proving this method can be effective.

2. Do you agree with Baxter’s concern that “more than two days a week out of the office…reduces contact with co-workers and erodes the group ethic”? Why or why not?

Company face time is important because of the support and contact that is necessary to keep em-ployees involved in the company’s mission and vision. Company time also allows for feedback and is an important communication outlet.

3. Baxter’s plan to move to an automated allocation system will require its overseas customers to enter orders and forecast demand – work formerly done by Baxter employees. Is that an appro-priate solution to employee work-life tensions? Why or why not?

Probably. Lower level functions are best done by other means thus allowing the Baxter employ-ees can keep their own nontraditional schedules in place and not making their work lives even more diffi-cult. Ultimately, companies have to find productivity and efficiencies; and in this case, Baxter has a sense of how that can best work and does not want to change their formula.

4. Consider the company you work for (or one you have worked for in the past). Would you say that the company is concerned about your work-life tensions? Explain your answer.

Great question for comparisons to the case study and students’ work experiences. Find out if they have encountered any deviations to the normal work schedule and why this was done compared to the tra-ditional work schedule.

DISCUSSION EXERCISE 9.2

Smashing the Clock

Companies are changing the traditional workplace schedule and allowing employees more free time to do other personal “things” as long as they accomplish their job. Best Buy has employed this with their ROWE (Results Only Work Environment) program in which workers do not punch time clocks or show up for unnecessary meetings, but rather are asked to work the personal schedule that best helps them be productive and achieve expected results.

1. Why is Best Buy’s ROWE program considered to be such a radical move?

The traditional work schedule dates to the 1930s, equating employee productivity to physical time on the job. The ROWE program is an opposite way of looking at employees and how they can be most productive.

2. What are the potential benefits of the ROWE program?


Employees are able to keep a balance to their own personal work styles and productivity and merge them with the responsibilities of their job. Employees are also able to stay attached to their per-sonal lives, and these are important issues in the workplace today. Finally, employees are still tied into job performance, even if they set the rules and parameters as to how they get their work done. Manage-ment helps by not enforcing any mandatory meetings or schedules that impede worker productivity.

3. Consider your current job (or one you have held in the past). Would this kind of program work there? Why or why not?

Find out if students are familiar with any examples of this style of worker responsibilities that dif-fer from the traditional work environment. Discuss the perceived success of these programs.

4. Do you think such employment flexibility would improve your productivity and morale? Explain your answer.

Ask students if their lifestyle lends itself to these styles of changing the work environment that would allow them more flexibility in planning their time on a daily basis? Ask them how they would merge this style in their current workplace.


CAREER MANAGEMENT NOTES

Positive Attitude and Its Importance

Instructor’s Notes for Text Box Nine: Objectives to consider and implement to increase students knowledge, usage and understanding of the concepts.

To become more productive and get the greatest return for personal time spent on things in life that we must do or, more importantly, the things that we do not like to do, one must maintain a positive attitude – the thing that can make the difference between below average output and expectations to above average ones!

To help with the proper mindset regarding attitude, here are some famous quotes that might en-courage you to think more about your what you might do to improve your own attitude:

William James:

“It is our attitude at the beginning of a difficult task which, more than anything else, will affect its successful outcome”.

Robert Conklin:

“It’s not the situation….it’s your reaction the situation”.

Less Brown:

“Life takes on meaning when you become motivated, set goals and take on them in an unstop-pable manner”.

Brian Tracy:

“Make a game of finding positive in every situation. Ninety-five percent of your emotions are de-termined by how you interpret events to yourself”.

STUDENT EXERCISE:

Give students the following questions to rate and compare their attitudes before and after this self-examination. Discuss the questions and answers with the class.

Read each situation and honestly answer each question. Give answers that reflect how you look at various situations as they relate to your attitude and outlook:

Question 1:

When you are asked to do something that is difficult – for example, extra project in class or work longer hours on your job – how do you usually respond?

(a) I immediately say “NO” to myself and put little or no effort into what is being asked.(b) I put up my guard and ask questions and look for ways to “get out” of the situation.(c) I ask questions because I know I “have” to do it and want to find out more before I leave

the situation.


(d) I immediately “volunteer” myself and put myself on the “team” to get things done under-standing it may take more than is expected and the job duties might change.

Question 2:

You have been told by your boss that you are going to get a “promotion,” including more pay if she can get final approval from her supervisor. You find this news exciting.

A week passes; you have been thinking a lot about the new position and what it might do for you personally and professionally. Finally, your supervisor informs you that the promotion was not approved; you have to remain in the current job and she does not have a timeline as to when this subject will be brought back up. How might you handle this situation?

(a) You take the news “terribly” and angrily walk off, telling your boss you may not come back.

(b) You “confront” your boss, telling her she was not forceful enough in getting you the pro-motion and you aren’t sure you want to work for her.

(c) You hold your emotions in “check,” saying little, and go back to your job with minimum effort as your disappointment is very obvious and you need time to make the adjustment.

(d) You tell your boss “thanks” for looking at you as a good employee and that you will work the same and even harder to make sure the company sees what a valuable employee you are and has no other choice but to promote you in the future.

Question 3:

You are working with a personal friend and classmate on a group assignment for your math class doing a survey and tabulating and interpreting the results. It takes several weekends to complete the as-signment. Along the way, you find your friend is lazy, doing little to help you. By the completion of the project, he has taken advantage of you and you are “offended’ by his overall lack of commitment to the project and its outcome. You work extra hard and the project is turned in on time; you get an “A” for your grade. As you present your project’ findings in class, students (and the teacher) are impressed by how well you did your work. Your “friend,” however, pretends he did most of the work and wants to take credit for how well the project turned out. As you have already endured your friend’s laziness while working, when you now see him taking credit for the outcome you respond by:

(a) Speaking up during the presentation, letting the students and teacher know that your friend did little to help, and you want to make it clear that you “deserve” all the credit.

(b) You “withdraw” from the presentation and let your friend continue with his presentation that his knowledge and hard work are the reasons why the project turned out so well.

(c) You stay involved in the presentation and walk away “disgusted” at the end, unsure as to how you will handle what has just happened.

(d) You remain involved in the project, making sure it is conducted properly. After class has ended, you ask the teacher if students can fill out a personal evaluation about their involve-ment and contributions to the project, so the teacher might understand what really happened while students worked (or did not work) on the project. This is your “positive” way to let the teacher know the work distribution was not as expected; you are helping her better un-derstand what happened in your supposed “team effort” to do the work as expected.

Question 4


You go out for your school’s basketball team and make the varsity squad. Your coach has made an important statement at the beginning of the season that he has no “favorites” – playing time will be earned. You take this statement as to heart and have a tremendous preseason, working really hard and ex-pecting to get a lot of playing time when the season starts. The season is now a third completed and you are hardly playing. In fact, there have been a few games where you have sat on the bench the whole game. You have noticed lately that the coach does have “favorites”; and you are losing interest if the season continues the way it has gone so far. Given the current situation, you are likely to:

(a) You draw attention to yourself during warm ups by making comments that can be heard by your teammates and coaches that you might as well enjoy the floor time now because it will be the only time you a chance to make a shot that counts.

(b) Wait until the next game and as you are relegated to the bench, you start mocking the ac-tions of the coach because you want to embarrass him in front of the team and fans watch-ing the game.

(c) You look for the “captain” of the team and ask if you can talk to him about the situation for possible reasons why you are not playing or for his help to try to find out from the coach if something is wrong that you are not aware of.

(d) You remain positive about the situation and approach the coach and remind him how hard you have worked and how much you want to contribute to the teams’ success, knowing that you will let the situation play out and remain positive no matter how hard it might be sitting on the bench.

As you reflect on your answers to the questions, read these additional questions and write your short answers in your Career Smart Journal:

1. How were your answers to the previous questions? Did you have a pattern of being more negative than positive? Or, do you feel your actions were easily justified and that there is was no reason why you should change your behavior?

2. How do you feel your attitude is? More negative than positive or more positive than negative? Why?

3. What are the consequences of having a negative attitude?

4. What are the benefits to improving your attitude?

5. What steps can you take to improve your attitude? List them:

a. __________________________________________________________________________

b. __________________________________________________________________________

c. __________________________________________________________________________

d. __________________________________________________________________________

e. __________________________________________________________________________


STUDY SKILLS NOTES

Importance of Good Communication Skills!

Instructor’s Notes for Text Box Nine: Objectives to consider and implement to increase students knowledge, usage and understanding of the concepts.

How well do you do speaking to groups of people? How well do you do speaking to a large audi-ence or with your boss in a one-on-one meeting? Each of these situations require different speaking and communication skills and having some mastery over each can greatly enhance your value because com-munication skills are the links to what you know and how well you present your knowledge to others. Also, communications skills help you convince, persuade command or motivate others.

To think through how effective communication skills are achieved, first consider how you think about public speaking. Second, think how well you might do speaking to your peers. Finally, how well do you do with one-on-one situations where your every word is being analyzed? This can have implications for how well you communicate or whether this skill can lead you to higher career-level opportunities. Be-fore we get ahead of ourselves regarding communication skills, college course work is the learning and proving grounds for working on your communication skills; and in most cases, your instructor or profes-sor can be a good mentor who can help you improve your communication effectiveness through sound writing and speaking techniques.

STUDENT EXERCISES:

Have fun with communication improve. Make a list of situations (e.g., you have just won the Olympic gold medal in the marathon, you have just won the Oscar for your latest movie, you have just been elected mayor of your town, etc.). Write them on pieces of paper and have students pick them and immediately describe how they would explain their subject orally in front of the class. This is a good way to get them to talk on their feet, in front of a group of their peers. At the conclusion of this exercise, dis-cuss the good things they were able to do and the difficulties they encountered. Allow the instructor and students to give feedback to help each other become better speakers!


LECTURE LINKS

LECTURE LINK 9-1

Finding Google People

Have you ever made a profit from a catering business or dog walking? Do you prefer to work alone or in groups? Have you ever set a world record in anything? The right answers could help get you a job at Google.

Google has always wanted to hire people with straight-A report cards and double 800s on their SATs. Now it is starting to look for more well-rounded candidates, like those who have published books or started their own clubs.

Desperate to hire more engineers and sales representatives to staff its rapidly growing search and advertising business, Google – in typical eccentric fashion – has created an automated way to search for talent among the more than 100,000 job applications it receives each month. It is starting to ask job appli-cants to fill out an elaborate online survey that explores their attitudes, behavior, personality and bio-graphical details going back to high school. The questions range from the age when applicants first got excited about computers to whether they have ever tutored or ever established a nonprofit organization. The answers are fed into a series of formulas created by Google’s mathematicians that calculate a score – from zero to 100 – meant to predict how well a person will fit into its chaotic and competitive culture.

“As we get bigger, we find it harder and harder to find enough people,” said Laszlo Bock, Google’s vice president for people operations. “With traditional hiring methods, we were worried we will overlook some of the best candidates.”

Google’s growth is staggering even by Silicon Valley standards. It is constantly leasing new buildings for its overflowing campus in Mountain View, California, and opening offices around the world. Google has doubled the number of employees in each year from 2004 to 2007. Even though the company now has about 10,000 employees, the company expects to double again in 2008. That would in-crease the number of hires to about 200 a week.

As a result, Bock has been trying to make the company’s rigorous screening process more effi-cient. Until now, head hunters said, Google largely turned up its nose at engineers who had less than a 3.7 grade-point average. (Those who wanted to sell ads could get by with a 3.0 average, according to industry head hunters.) And it often would take two months to consider candidates, subjecting them to more than half a dozen interviews.

Unfortunately, most of the academic research suggests that the factors Google has put the most weight on – grades and interviews – are not an especially reliable way of hiring good people. “Interviews are a terrible predictor of performance,” Mr. Bock said. So Google set out to find out if there were any bits of life experience or personality it could use to spot future stars.

In 2006, Google asked every employee who had been working at the company for at least five months to fill out a 300-question survey. Some questions were factual: What programming languages are you familiar with? What Internet mailing lists do you subscribe to? Some looked for behavior: Is your work space messy or neat? And some looked at personality: Are you an extrovert or an introvert? And some fell into no traditional category in the human resources world: What magazines do you subscribe to? What pets do you have?

The data from this initial survey was then compared with 25 separate measures of each em-ployee’s performance. Again there were traditional yardsticks – the employees’ reviews, both by supervi-sors and peers, and their compensation – and some oddball ones.


One score was what the company called “organizational citizenship;” that is, things you do that aren’t technically part of your job but make Google a better place to work. When all this was completed, Dr. Todd Carlisle, who designed the survey, analyzed the two million data points the survey collected. Among the first results was confirmation that Google’s obsession with academic performance was not al-ways correlated with success at the company. “Sometimes too much schooling will be a detriment to you in your job,” according to Carlisle.

Indeed, there was no single factor that seemed to identify the top workers for every single job ti-tle. But Dr. Carlisle was able to create several surveys that he believed would help find candidates in sev-eral areas: engineering, sales, finance, and human resources. He plans to use the survey for every appli-cant soon.

Even as Google tries to hire more people faster, it wants to make sure that its employees will fit into its freewheeling culture. The company boasts that only 4 percent of its work force leaves each year, less than other Silicon Valley companies. And it works hard to retain people, with free food, time to work on personal projects, and other goodies. Stock options and grants certainly encourage employees to stay long enough to take advantage of the company’s surging share price.i

LECTURE LINK 9-2

Background Checks: Security and Privacy Issues

Traditionally, employers have used background checks to screen applicants looking the best new employees. Today’s heightened concerns for security coupled with improved technology means back-ground checking has become more widely used.

Current events illustrate some of the reasons for this increase. Child abuse and abductions prompted the enactment of new laws that require background checks for anyone seeking to work or to volunteer to work with children. After the corporate scandals of the early 2000s, executives, directors, and officers face a higher degree of scrutiny. The threat of terrorist attacks has led to tightened security and screening of candidates to work at airports, train stations, and car rental agencies.

Another reason for increased scrutiny in the hiring process: negligent hiring suits are on the rise. If an employee’s actions hurt someone, the employer may be liable. A company in Pennsylvania lost a lawsuit when it failed to perform a check that would have uncovered an applicant’s history of inappropri-ate behavior toward women. The increase in the crime of identity theft has employers checking to be sure applicants are who they say they are. (This is a double-edged sword, as some applicants have been the victims of identity theft and unknowingly lost potential jobs because of false information on their records.) Federal and state laws require background checks for certain jobs: for instance, in the health care industry, and of anyone seeking to work with children, the elderly, or the disabled.

With companies increasingly relying on pre-employment background checks, it’s important to get the information right. But the background checking industry lacks consistent standards, which can cause errors that can disqualify reputable job applicants. One applicant for an Office Depot cashier position was rejected when a criminal background check revealed a lengthy history of drug convictions in Washington, although she had never been to the state. She fought for six weeks to clear her name and eventually got the job.

Even more disturbing are the cases in which pre-employment screening misses something impor-tant. In 2005, FedEx Corp. was accused of hiring a sex offender who was later charged with molesting an 8-year-old boy while at work. FedEx did a background check on the employee, but it did not reveal his criminal history.

Background screeners say it can be difficult to uncover criminal histories. The FBI’s criminal database is generally not public, except for law enforcement and similar organizations. In the FedEx case,


the employee worked in Connecticut but had a criminal record in Maine. Searching across state and county jurisdictions is virtually impossible. Records are scattered across the 3,142 counties in the United States.

Despite the necessity of these background checks, applicants are not without rights. For example, employers need to obtain written consent from applicants before performing background checks. The Fair Credit Reporting Act requires a specific notification of rights and notice that a consumer report (back-ground check) is being performed by an outside company. If there is “adverse action” (the candidate is not hired, for instance) because of information obtained on the consumer report, the person must be noti-fied that he or she is entitled to request a copy of the report.

There are time limits on disclosure of some information. Bankruptcies may not be considered af-ter ten years. Civil suits, civil judgments, records of arrest, paid tax liens, accounts placed for collection, and any other negative information (except criminal convictions) may not be reported after seven years.

Some information requires the authorization of the subject. Education records and military ser-vice records are confidential except for “directory information” such as name, dates, degrees, and military rank. Medical records are confidential, and the subject’s specific permission is required for release. The Americans with Disabilities Act allows potential employers to inquire only about an applicant’s ability to perform specific job functions.

While the Internet has made it possible for employers to perform basic checks with their com-puter and a credit card, labor lawyers caution against depending on websites since information obtained may not be complete or up-to-date. For instance, an arrest may show up but the acquittal or dropping of charges may not.

A national task force funded by the Justice Department has been established to recommend na-tional standards for screening companies. The standards cannot come too soon.ii

LECTURE LINK 9-3

Interview Blunders

Everybody wants to put their best foot forward at a job interview, but the pressure of the inter-view can sometimes make interviewees lose their common sense. Here are a few mishaps that are good enough for Dick Clark’s next Blooper show:

One candidate arrived at an early morning interview and asked to use the interviewer’s phone. She then faked a coughing fit as she called in sick to her boss.

A hiring manager called a job seeker and asked him to bring several copies of his résumé and three references to an interview. An hour before the interview, the applicant called back and asked to reschedule because his references couldn’t come with him.

One candidate apologized for being late, said he accidentally locked his clothes in his closet.

A balding candidate abruptly asked to be excused. He returned to the office in a few minutes later wearing a hairpiece.

An applicant wore a Walkman to the job interview and explained she could listen to the inter-viewer and the music at the same time.

When an interviewer offered to answer any questions the job seeker had, the applicant asked, “What happens if I wake up in the morning and don’t feel like going to work?”

An applicant walked in and inquired why he was there.


After answering the first few questions, an interviewee picked up his cell phone and called his parents to let them know how the interview was going.

Shortly after sitting down another interviewee brought out a line of cosmetics and started a strong sales pitch.

At the end of one interview, the candidate said she was interested in the position but would have to check with her boyfriend. Then she said, “He’s waiting outside. Can he come in and say hello?”

When one applicant was asked why he wanted to work for the company, he replied, “That’s a good question. I really haven’t given it much thought.”

A man brought in his five children and cat.

The company was actually pursuing one candidate. He was impressive on the phone, and an inter-view was set up at a five star restaurant. He showed up dressed inappropriately and smacked chewing gum as he talked. When the gum fell out of his mouth on to the table, it became stuck to the tablecloth and then to a linen napkin. He wasn’t hired.

When asked why she was leaving her current job, an interviewee said, “My manager was a jerk. All managers are jerks.”

One applicant said, “If I hired him, I’d soon learn to regret it.”Another applicant arrived with a snake around her neck, saying she took her pet everywhere.

One candidate disparaged his former boss during an interview, not noticing that the interviewer and the boss had the same last name and were related.

When asked about loyalty, an applicant showed the interviewer a tattoo of his girlfriend’s name.During an interview, a call came in from the applicant’s wife. The interviewer heard: “Which

company? How much? When do I start?” The interviewer said, “I assume you’re not in-terested in continuing our interview?” He promptly replied, “That depends on whether you’ll pay me more?” He wasn’t hired, and it turned out there was no other job offer. His conversation was a scam to get a higher offer.iii

LECTURE LINK 9-4

CellularSouth’s Katrina Teams

Executives at CellularSouth had seen natural disasters before. Many executives grew up in Mis-sissippi during the 1960s, when Hurricane Camille devastated the Gulf Coast. The privately-held wireless provider, based in Jackson, Mississippi, had dealt with many the South’s notorious ice storms. But noth-ing prepared the company for what it would face in August 2005.

Before the Hurricane Katrina hit, the company initiated its emergency plan to respond to disaster. On Friday, August 26, three days before hurricane hit, CellularSouth’s Emergency Task Force was placed on standby status for immediate post-storm deployment. The technical team began preparing the network by strategically placing generators and putting tower crews on standby. On Monday, within hours of Kat-rina’s pass through the Mississippi Gulf Coast, network technicians began around-the-clock restoration of service. The next day, Tuesday, CellularSouth’s emergency teams made their way to South Mississippi and the Gulf Coast to reopen retail locations where possible and began daily deliveries of supplies to af-fected employees. Over 1,000 phones were distributed to relief agencies, public service agencies, and Red Cross shelters.


At CellularSouth’s corporate offices in Jackson, two war rooms were set up. One war room served as a command center for tower restoration. The other served as a logistics center to deliver sup-plies to the technical staging center, to stores that were open, and to the teams on the ground. Suzy Hays, head of sales, marketing, and customer relations, manned the technical staging center. “Our prior experi-ence with disasters was invaluable. We had restored cellular service after the ice storms in the Mississippi Delta and had been through Hurricanes George and Ivan. So when we learned a category 5 hurricane was coming, we were prepared.”

CellularSouth’s network stretches from Memphis, throughout Mississippi, along the Alabama Coast, and into the Florida Panhandle. The company served more wireless customers than any other provider in some of the most devastated areas in Mississippi. In the hardest hit counties, the company de-ployed COWS (Cellular on Wheels,) temporary cellular sites that supported services in areas where power was lost or tower damage had occurred. The network, which never universally lost service during or after the storm, was fully operational by September 9, less than two weeks following the storm.

Hays plans to continue in her customer service role for CellularSouth by making sure every cus-tomer thinks, “Wow, I can’t remember the last time I had service like that,” she says. “That’s my job in a nutshell; to make sure that happens with every customer, every time.”iv

i Sources: Saul Hansell, “Google’s Answer to Filling Jobs: New Algorithm,” The New York Times, January 3, 2007; Julie Masis, “Google Clicks With Job-Seekers” The Boston Globe; Aug 12, 2007; Fung, Amanda, “Google, Rivals Hunt for Sales Staff in NY,” Crain’s New York Business, July 31, 2006; and “Silicon Valley Upstart Google Grows into the Not-So-Little Engine that Could,” The Philadelphia Inquirer, January 4, 2004.

ii Sources: Gwen Shaffer, “Background Checks on the Rise at Companies,” Philadelphia Business Journal, March 28, 2003; David Hench, “Requests Surge for Criminal Histories,” Maine Sunday Telegram, December 1, 2002; Em-ployment Background Checks: A Jobseeker’s Guide, Privacy Rights Clearinghouse, Revised April 2003; and “Back-ground Checks by Companies Spark Worries,” The Clarion-Ledger, Associated Press, December 30, 2005.

iii Sources: Press release, “Note to Job Candidates: Avoid Bringing Doughnuts, Dogs, and Dates to the Interview,” Officeteam.com, September 25, 2002; Alicia Dennis, “‘Cow Car’ Isn’t Just an Interviewer’s Tall Tale,” Austin Busi-ness Journal, January 31, 2003.

iv Sources: “CellularSouth Partially Restores Service in Major Coast Counties,” Business Wire, September 6, 2005; “Mississippi Cellular Service Restored in Aftermath of Katrina,” University Wire, September 23, 2005; Cellular-South News, Fall 2005; Lynne Jeter, “Tech Executive Thought She Was Prepared for Katrina,” Mississippi Business Journal, January 9, 2006; and interviews with company executives.


BONUS INTERNET EXERCISE

BONUS INTERNET EXERCISE 9-1V

Job Search Via the Internet

Go to the website for Monster.com (www.monster.com.) (Sometimes the web address for a loca-tion changes. You might need to search to find the exact location mentioned.)

1. Use the search by geographic location (or by zip code) to pull up job openings in your home city. List the three jobs that most interest you and/or match your skills and education.

2. Follow links to career resources (or job search resources). Which tools would be helpful to you in a job search?

3. Go to other online employment agencies such as www.jobsearch.org, www.careerbuilder.-com, or www.hotjobs.com. Which site provides the information you need to search for a job?

4. Why would a company place an employment listing using an online employment service rather than place an ad in a newspaper or trade journal?

v The Internet is a dynamic, changing information source. Web links noted in this manual were checked at the time of publication, but content may change over time. Please review the website before recommending it to your stu-dents.


CRITICAL THINKING EXERCISE

CRITICAL THINKING EXERCISE 9-1

Expanding the Workforce

You are the human resource manager for Kaiser Electronics, Inc. Kaiser is considering expanding its operations in order to double its current $1.5 million in sales in five years. This means production must double. It will require expanding the workforce and payroll. You have been asked to project the staffing levels and payroll costs necessary to expand. You report that in addition to the current work force the fol-lowing personnel will be required:

Two additional sales representatives.

Two additional clerical workers (both Level 6.)Ten additional assembly-line operators (Level 4) for the production department.

Three additional materials handlers (Level 4) for the production department.One additional assembly line supervisor (Level 14).

Now you must estimate the costs of adding these personnel to the payroll. Use the attached chart “Future Payroll Estimates” to compute your projection figures (assume the current pay scales remain un-changed). Use the chart to answer the following questions:

1. What will be the projected annual payroll cost?

2. If Kaiser does double its sales in five years, what percentage of sales will payroll be in five years? What percentage is it today?

3. Would you recommend the expansion? Why or why not?


CRITICAL THINKING EXERCISE 9-1 (CONTINUED)

FUTURE PAYROLL ESTIMATES

POSITION PAYSCALE

PRESENT STAFF

PRESENT PAYROLL

PROJECTED STAFF

PROJECTED PAY-ROLL

MANAGEMENT

Level 24

Level 18

$65,000

$45,000

1

1

$65,000

$45,000

_________

_________

_______________

_______________

CLERICAL

Level 10

Level 6

$21,000

$16,000

2

3

$42,000

$48,000

_________

_________

_______________

_______________

PRODUCTION

Level 14

Level 10

Level 8

Level 5

Level 4

$26,000

$19,000

$16,000

$13,000

$11,000

3

1

2

2

13

$78,000

$19,000

$32,000

$26,000

$143,000

_________

_________

_________

_________

_________

_______________

_______________

_______________

_______________

_______________

SALES

Level 10 $26,000 5 $130,000 _________ _______________

TOTALS 36 $628,000 _________ _______________


NOTES FOR CRITICAL THINKING EXERCISE 9-1

POSITION PAYSCALE

PRESENT STAFF

PRESENT PAYROLL

PROJECTED STAFF

PROJECTED PAYROLL

MANAGEMENT

Level 24

Level 18

$65,000

$45,000

1

1

$65,000

$45,000

1

1

$65,000

$45,000

CLERICAL

Level 10

Level 6

$21,000

$16,000

2

3

$42,000

$48,000

2

5

$42,000

$80,000

PRODUCTION

Level 14

Level 10

Level 8

Level 5

Level 4

$26,000

$19,000

$16,000

$13,000

$11,000

3

1

2

2

13

$78,000

$19,000

$32,000

$26,000

$143,000

4

1

2

2

26

$104,000

$19,000

$32,000

$26,000

$286,000

SALES

Level 10 $26,000 5 $130,000 7 $182,000

TOTALS 36 $628,000 50 $881,000

1. What will be the projected annual payroll cost?

Projected annual payroll cost is $881,000.

2. If Kaiser does double its sales in five years, what percentage of sales will payroll be in five years? What percentage is it today?

Projected percentage of sales: $881,000/3,000,000 = 29%Current percentage of sales: $628,000/1,500,000 = 41.9%.

3. Would you recommend the expansion? Why or why not?

Yes, both the cost figures and potential are good. The percentage of sales devoted to payroll ex-penses will decrease significantly with the expansion. Looked at another way, by spending an additional $253,000 in payroll costs, the company can earn an additional $1,500,000 in revenue – not a bad return on investment.


BONUS CASES

BONUS CASE 9-1

Should You Hire a Former Employee?When one of Santera Systems’ top engineers left the telecom upstart for another hot tech com-

pany, CEO David Heard tried to convince the employee he was making the wrong move. That engineer should have listened. Heard’s former star showed back up only four months later, looking for his old job. Turned out his new employee wasn’t so hot after all. “He came back, hat in hand, and said ‘I made a mis-take,’” says Heard.

Call them prodigal employees: workers who leave in search of greener pastures, only to return to the fold when things don’t work out as planned. The tech meltdown and the unstable economy have forced a growing group of newly displaced workers to knock on their former employers’ doors.

Good people, however, are hard to find, and prodigal employees should be welcomed back – if there is a position to fill. But it’s not such a clear cut decision for small businesses. Since employee rela-tionships tend to be tighter-knit in smaller firms, a company’s productivity can easily unravel when the boss shows signs of favoritism. In Santera’s case, CEO Heard felt rehiring the engineer would harm his efforts to build a culture long on longevity and short on greed. “Part of me thought, ‘Bring him back – he’s a smart guy’,” Heard says, “But you don’t want to reward his behavior. It doesn’t send the right mes-sage to the employees who stuck with you.”

Small-company CEOs and managers must be extra sensitive to their employees’ morale if they do decide to bring back a wayward worker. Recruiting experts suggest lining up allies to be advocates for the returning employee before – and after – his or her first day back. That helps the rest of the team under-stand why the “ex” is back home and helps the old newcomer feel more comfortable. They also recom-mend giving the whole team a project to pursue together.

In many cases, bringing back a former employee can be an unexpected boon for a small company. Sterling Communications executive Chris Corcoran was happy to rehire a qualified account supervisor who had left months earlier for a dot-com that went bust. He was pleasantly surprised to discover she came back with a better understanding of business as a result of wearing many hats at the tech company. “She had matured and become a much better counselor to our clients.”vi

DISCUSSION QUESTIONS FOR BONUS CASE 9-1

1. What would be the advantages and disadvantages of hiring a former employee in larger organiza-tions? In small firms?

2. How valid were David Heard’s concerns about the effect of returning employees on the com-pany’s culture?

3. At which level of the organization should the rehire decision be made: supervisory, middle man-agement, or upper management?

ANSWERS TO DISCUSSION QUESTIONS FOR BONUS CASE 9-1vi Source: Stephanie N. Mehta, “Prodigal Son,” Fortune Small Business, July/August 2002, p. 77.


1. What would be the advantages and disadvantages of hiring a former employee in larger organi-zations? In small firms?It may be easier to hire back an employee in large organizations, but only after discussion with

the other employees. They may welcome a great worker back. It depends greatly on the circumstances. Students should be able to think through such issues. That’s what these cases demand. In a small firm, hiring people back can have more severe consequences for promotions and such. Discuss.

2. How valid were David Heard’s concerns about the effect of returning employees on the com-pany’s culture?

His comments were valid. Bringing people back can harm the whole atmosphere in a company. On the other hand, it may be a good opportunity to show the returning worker and those who stay that the company is loyal to its workers and will bring you back. Of course, the whole subject needs to be dis-cussed with other employees first.

3. At which level of the organization should the rehire decision be made: supervisory, middle man-agement, or upper management?All levels should be involved because all levels are affected. Not just managers, but employees

too. Eventually, there should be a policy on such issues so that everyone is not forced to agonize over each decision.


BONUS CASE 9-2

The Department Store Dilemma“This is a rough decision,” said Stan Walden, store manager and vice-president of Bassfield De-

partment Store. Bassfield, a large urban retailer with 350 employees, is a family-owned business that has operated in Levittston for over 30 years. Walden believes strongly in delegating authority to lower levels of management. However, Adele Stafford, manager of the women’s sportswear department, has recently referred a problem to him.

Six weeks ago, Mary-Alice Brooks, aged 23, was hired as a temporary employee. She has an out-standing personality and immediately made friends with the senior workers in the department, as well as with other salespersons and clerks in the store. Moreover, she is an exceptional salesperson who relates well to customers. In fact, many had gone out of their way to tell Adele Stafford how much they enjoyed dealing with Mary-Alice. After Mary-Alice’s two-week temporary period, her manager requested that she be hired on a full-time basis; Mary-Alice’s husband has recently undergone major surgery, so Mary-Alice was glad to have full-time work.

Four days ago, Bill Chavez, personnel manager of the store, realized that Mary-Alice had not taken the medical exam required of all full-time employees. When Mary-Alice took the exam that after-noon, she didn’t pass it due of an existing heart condition. Because of restrictions in the company’s medi-cal insurance program, she could not be hired. Chavez told Stafford that Mary-Alice would have to be ter-minated. Stafford, women’s sportswear manager, argues strongly that an exception be made in Mary-Al-ice’s case. Several employees have also told the personnel manager that it is unfair to Mary-Alice to re-lease her now, since it was his own oversight. Also, they argue that the company should be willing to help people in situations such Mary-Alice’s, since they have an EEOC program and have even hired some dis-abled employees in the past.

But Chavez, the personnel manager, says that Mary-Alice must go. The rule is that all permanent employees must pass the physical, and Mary-Alice has not.

Stafford appealed the decision to Walden, the store manager, who said he would let her know something the next day. As he ponders a way out of the dilemma, Walden is aware of the results of a sur-vey on his desk; 42% of the employees say that they would consider joining a union if one attempted to organize the store.

DISCUSSION QUESTIONS FOR BONUS CASE 9-2

1. What are the key issues in the case?

2. Develop several realistic alternatives for Walden to consider.

3. What decision do you recommend that Walden make?

ANSWERS TO DISCUSSION QUESTIONS FOR BONUS CASE 9-2

1. What are the key issues in the case?It is a good idea to let students develop this case. They should consider that the company policy is

to have everyone pass a physical. Policies are there for just such cases – so that managers don’t have to make decisions over and over again with hard cases. But the human side also needs to be considered, as does the affect on existing employees and customers.


2. Develop several realistic alternatives for Walden to consider.A store manager is very concerned with sales and profit; therefore, it would be hard to let go a

stellar sales performer. Among the alternatives:(1) Seek a second opinion from another physician to determine the exact extent of Mary-Alice’s

condition.(2) Look into purchasing a supplemental health insurance policy for Mary-Alice.(3) Waive the insurance restriction and hire Mary Alice anyway.(4) Reduce Mary Alice’s hours below full-time status so the restriction would not apply.(5) Find another insurance company.(6) Fire Mary Alice.

3. What decision do you recommend that Walden make?

I have used this case in my classes several times over two decades. With very few exceptions, students have decided to keep Mary Alice on despite the manager’s recommendation. A few want to fire Chavez. Some think the employees should unionize to protect themselves from unfair practices. Most want to find a middle ground that lets Mary Alice keep her job with some modifications to the policy.

One practical idea suggested is to involve the employees in the decision-making process, perhaps creating an ad hoc committee made up of managers, employees, and knowledgeable consultants. If em-ployees are given the all the facts, they can make an educated decision. A decision reached with employee input is more likely to be accepted by workers than one dictated by management. Explain that insurance premiums are based on the combined experience of the group covered. In a large organization, one expen-sive medical problem will be spread out over a large number of covered workers. In a small business, however, one person’s health costs can drive up premiums very quickly. Would employees be willing to accept higher insurance premiums to keep this valuable worker?

A very important point to consider: Is this policy even legal? Can you reject a potential employee because of a medical problem? Does this violate the Americans with Disabilities Act? If you fire Mary Alice, are you opening your company to a wrongful termination lawsuit?


BONUS CASE 9-3

Creating Cross-Functional Work Teams

The Direct Response Group (DRG) at Capital Holding is a direct marketer of life, health, prop-erty, and casualty insurance. In the past, it sold a mass-produced product to a mass market. Over time, however, sales slowed, profits eroded, and the company decided it had to refocus its efforts. That meant, for one thing, selling to particular, identifiable customers and giving those customers a customized prod-uct/service package that was world class, enabling the company to compete globally.

An analysis of the corporate culture showed that people were more concerned with pleasing their bosses than pleasing the customer. People hoarded information instead of sharing information because the people with information had power. The information system had to be changed to encourage sharing.

Organizational change began with a vision statement that emphasized caring, listening to, and sat-isfying customers one-on-one. To accomplish that goal, the company formed a cross-functional team to study the sales, service, and marketing processes and to completely redesign those functional areas. The idea was to have a world-class customer-driven company. That meant gathering as much information as possible about customers.

Front-line customer-contact people were empowered with user-friendly information systems that made it possible for one contact person, working with a support team, to handle any question that cus-tomers had. Management used external databases to get detailed information on some 15 million con-sumers. The combined internal and external databases were used to develop custom-made products for specific customer groups.

The whole company was focused on satisfying customer wants and needs. That meant changing processes within the firm so that they were geared toward the customer. For example, one case worker is now attached to each customer, and that case worker is responsible for following an application through the entire approval and product design process. Previously, many people handled the application, and no one person was responsible for it.

A pilot program was started whereby a customer-management team was formed to serve 40,000 customers. The team consisted of 10 customer service representatives and their support team (a marketer, an expert in company operations, and an information systems person). Employees are now rewarded for performance, and merit raises are based on team performance to encourage team participation.

DISCUSSION QUESTIONS FOR SUPPLEMENTAL CASE 9-3

1. Are traditional bureaucracies set up to provide custom made products to individual consumers? Could they be, or is it always better to have customer oriented teams design such products?

2. Anyone who has worked in team situations has discovered that some members of the team work harder than others; nonetheless, the whole team is often rewarded based on the overall results, not individual effort. How could team evaluations be made so that individual efforts could be recog-nized and rewarded?

3. What service organizations, private or public, would you like to see become more customer ori-ented? How could this case be used as a model for that organization?

4. What are some major impediments to implementing customer oriented teams in service organiza-tions?


ANSWERS TO DISCUSSION QUESTIONS FOR SUPPLEMENTAL CASE 9-3

1. Are traditional bureaucracies set up to provide custom-made products to individual consumers? Could they be, or is it always better to have customer-oriented teams design such products?

Traditional bureaucracies are organizations that have many layers of management who set rules and regulations and participate in all decisions. Such an organization, by definition, would be unable to swiftly respond to customer needs. Decision making needs to be placed close to the customer, not in suc-cessive layers of management.

2. Anyone who has worked in team situations has discovered that some members of the team work harder than others; nonetheless the whole team is often rewarded based on the overall results, not individual effort. How could team evaluations be made so that individual efforts could be rec-ognized and rewarded?Team contributions are team contributions and difficult to isolate as individual efforts. In fact, the

purpose of team organization is to combine the best efforts of many individuals rather than relying on only one person. Team members exercise informal pressure to ensure continued quality effort. Such infor-mal pressure is much more effective than organizational efforts.

3. What service organizations, private or public, would you like to see become more customer ori-ented? How could this case be used as a model for that organization?

The chances are that almost every student’s list will contain (1) the U.S. Postal Service and (2) your school. This case shows that the entire organization must be committed to the customer-oriented team approach for it to be effective. Such an approach would be difficult in a public organization such as the Post Office. The potential for creating a customer-oriented school should be interesting to pursue.

4. What are some of the major impediments to implementing customer-oriented teams in service or-ganizations?Service organizations are quite different from product-producing organizations in that there is no

distance between the production of the service and the customer. The service is created when the cus-tomer receives it. Most service organizations already have a customer-oriented focus. This case shows, however, that much improvement can be made in the delivery of that service.


ENDNOTES


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