MNO Chapter 09 - Human Resource Management - Getting the Right People for Managerial Success

Chapter 9 - Human Resource Management Getting the Right People for Managerial SuccessHuman resource (HR) management - planning for, attracting, developing, and retaining an effective workforce.Consider how HR fits into overall company strategy, how to evaluate current and future employee needs, and how to recruit and select qualified people. Importance of orientation, training, and development.How to assess employee performance and give feedback.HR laws managers should be aware of. How to manage compensation and benefits, promotions and discipline, and workplace performance problems.

Human resource (HR) management consists of the activities managers perform to plan for, attract, develop, and retain an effective workforce. HR as part of strategic planning HR decisions must be consistent with the firms strategic mission Who should be recruited? How should they be trained? What's the best way to evaluate and reward their performance?Human capital is the economic or productive potential of employee knowledge and actions. A present or future employee with the right combination of knowledge, skills, and motivation to excel represents human capital with the potential to give the organization a competitive advantage

Social capital is the economic or productive potential of strong, trusting, and cooperative relationships.Strategic HR PlanningStrategic human resource planning consists of developing a systematic, comprehensive strategy for (a) understanding current employee needs and (b) predicting future employee needs.Understanding current employee needsTo plan for the future, you must understand the present-what today's staffing picture looks like. This requires that you do a job analysis first and from that write a job description and a job specification. Job analysis. The purpose of job analysis is to determine, by observation and analysis, the basic elements of a job. Specialists who do this interview job occupants about what they do, observe the flow of work, and learn how results are accomplished. Job description and job specification. Once the fundamentals of a job are understood, then you can write a job description, which summarizes what the holder of the job does and how and why he or she does it. Next you can write a job specification, which describes the minimum qualifications a person must have to perform the job successfully.Predicting Future Employee Needs - means you have to become knowledgeable about the staffing the organization might need and the likely sources for that staffing.The staffing the organization might need. You could assume your organization won't change much. fairly easily predict that jobs will periodically become unoccupied (because of retirement, resignations, and so on) and that you'll need to pay the same salaries and meet the same criteria about minority hiring to fill them. Better, however, to assume the organization will change. need to understand the organization's vision and strategic plan so that the proper people can be hired to meet the future strategies and work.The likely sources for staffing. You can recruit employees from either inside or outside the organization. In looking at those inside, you need to consider which employees are motivated, trainable, and promotable and what kind of training your organization might have to do. A device for organizing this kind of information is a human resource inventory, a report listing your organization's employees by name, education, training, languages, and other important information. In looking outside, you need to consider the availability of talent in your industry's and geographical area's labor pool, the training of people graduating from various schools, and such factors as what kind of people are moving into your area.

Four areas of human resource law any manager needs to be aware of are 1. labor relations, a. National Labor Relations Boardi. Enforces procedures whereby employees may vote to have a union and for collective bargaining. ii. Collective bargaining consists of negotiations between management and employees about disputes over 1. compensation, 2. benefits, 3. working conditions, and 4. job security.2. compensation and benefits, a. Fair Labor Standards Act of 1938 i. Established minimum living standards for workers engaged in interstate commerce, 1. including provision of a a. federal minimum wage and a b. maximum workweek, along with c. banning products from child labor.2. exempt from overtime rules:a. Salaried executive, b. administrative, and c. professional employees. 3. health and safety, and a. Beginning with the Occupational Safety and Health Act (OSHA) of 1970, a body of law has grown that requires organizations to provide employees with non-hazardous working conditions. i. 2010 health care reform legislation requires employees with more than 50 employees to provide health insurance.4. equal employment opportunity.a. The effort to reduce discrimination in employment based on racial, ethnic, and religious bigotry and gender stereotypes - Title VII of the Civil Rights Act of 1964.b. This established the Equal Employment Opportunity (EEO) Commission, whose job it is to enforce antidiscrimination and other employment-related laws. i. Title VII applies to all organizations or their agents engaged in an industry affecting interstate commerce that employs 15 or more employees. 1. Contractors who wish to do business with the U.S. government must be in compliance with various executive orders issued by the president covering antidiscrimination. Later laws prevented discrimination against older workers and people with physical and mental disabilities.c. Discriminationi. Discrimination occurs when people are 1. hired or promoted-or denied hiring or promotion-2. for reasons not relevant to the job, a. such as skin colour or eye shape, gender, religion, national origin, etc.d. Affirmative Actioni. Affirmative action focuses on achieving equality of opportunity within an organization1. It tries to make up for past discrimination in employment by actively finding, hiring, and developing the talents of people from groups traditionally discriminated againsta. Affirmative action plans are more successful when employees view them as being fair and equitable and when whites are not prejudiced against people of colourb. women and minorities hired on the basis of affirmative action felt stigmatized as unqualified and incompetent and experienced lower job satisfaction and more stress than employees supposedly selected on the basis of merit.e. Sexual Harassmenti. Sexual harassment consists of unwanted sexual attention that creates an adverse work environment.1. Quid pro quo - tangible economic injurya. In the quid pro quo type, the person to whom the unwanted sexual attention is directed is put in the position of jeopardizing being hired for a job or obtaining job benefits or opportunities unless he or she implicitly or explicitly agrees2. Hostile environment - offensive work environmenta. In the hostile environment type, the person being sexually harassed doesn't risk economic harm but experiences an offensive or intimidating work environment.i. Sexual innuendo, wisecracks, taunts

Recruitment: How to Attract Qualified Applicants

Recruiting is the process of locating and attracting qualified applicants for jobs open in the organization Internal Recruiting: Hiring from the Inside Internal recruiting means making people already employed by the organization aware of job openings. Most vacant positions in organizations are filled through internal recruitment, mainly through job posting, placing information about job vacancies and qualifications on bulletin boards, in newsletters, and on the organization's intranet. Companies looking to make strategic changes do better hiring CEOs from within the ranks rather than from outside. External Recruiting: Hiring from the Outside External recruiting means attracting job applicants from outside the organization. Notices of job vacancies are placed through newspapers, employment agencies, executive recruiting firms, union hiring halls, college job-placement offices, technical training schools, and word of mouth through professional associations. Many organizations-and not just high-technology companies-are advertising job openings on the Internet.

Which External Recruiting Methods Work Best? Most effective sources are employee referrals, because to protect their reputation, employees are careful about whom they recommend, and know the qualifications of both the job and the prospective employee.

The recruitment process turns up a handful of job applicants and now you turn to the selection process, the screening of job applicants to hire the best candidate.Selection ToolsDescription

Background Information: Application Forms, Resumes, & Reference Checks However, resumes may be fake, puffery Applicants lie about their education Increasing use of video resumes, which could expose the organization to a possible failure-to-hire claim on grounds of discrimination if the applicant belongs to a "protected class"-a minority individual or older person, for example Many employers don't give honest assessments of former employees, for two reasons: They fear that if they say anything negative, they can be sued by the former employee. They fear if they say anything positive, and the job candidate doesn't pan out, they can be sued by the new employer

Interviewing: Unstructured, Situational, & Behavioral-Description Unstructured interview. Like an ordinary conversation, an unstructured interview involves asking probing questions to find out what the applicant is like. has been criticized as being overly subjective and apt to be influenced by the biases of the interviewer. susceptible to legal attack, because some questions may infringe on non-job-related matters such as privacy, diversity, or disability compared with the structured interview method, the unstructured interview has been found to provide a more accurate assessment of an applicant's job-related personality traits Structured interview type 1-the situational interview. The structured interview involves asking each applicant the same questions and comparing their responses to a standardized set of answers. In one type of structured interview, the situational interview, the interviewer focuses on hypothetical situations. Example: "What would you do if you saw two of your people arguing loudly in the work area?" The idea here is to find out if the applicant can handle difficult situations that may arise on the job. type 2-the behavioral-description interview The interviewer explores what applicants have actually done in the past Question is designed to assess the applicant's ability to influence others. Example: "What was the best idea you ever sold to a supervisor, teacher, peer, or subordinate?"

Employment Tests: Ability, Personality, Performance, & Others Employment tests are legally considered to consist of any procedure used in the employment selection decision process Ability tests Ability tests measure physical abilities, strength and stamina, mechanical ability, mental abilities, and clerical abilities. Performance tests Performance tests or skills tests measure performance on actual job tasks Some companies have an assessment centre, in which management candidates participate in activities for a few days while being assessed by evaluators. Personality tests Personality tests measure such personality traits as adjustment, energy, sociability, independence, and need for achievement. Career-assessment tests that help workers identify suitable jobs Myers-Briggs Type Indicator Other Tests drug testing, polygraph (lie detectors), genetic screening, and even (a questionable technique) handwriting analysis an important legal consideration is the test's reliability-the degree to which a test measures the same thing consistently so that an individual's score remains about the same over time, assuming the characteristics being measured also remain the same. validity-the test measures what it purports to measure and is free of bias. If a test is supposed to predict performance, then the individual's actual performance should reflect his or her score on the test . Using an invalid test to hire people can lead to poor selection decisions.

Myers-Briggs Type Indicator

Orientation: Helping Newcomers Learn the RopesOrientation - helping the newcomer fit smoothly into the job and the organizationHelping New Employees Get Comfortable: The First 6 MonthsDepending on the job, a new hire can accomplish only 60% as much in the first 3 months as an experienced worker, according to MCI Communications.Employers have discovered that it's far better to give newcomers a helping hand than to let them learn possibly inappropriate behavior that will be hard to undo later.The Desirable Characteristics of OrientationOrientation is designed to give new employees the information they need to be effective. The job routine. At minimum, the new employee needs to have learned what is required in the job for which he or she was hired, how the work will be evaluated, and who the immediate co-workers and managers are. The organization's mission and operations. All managers need to know what the organization is about- its purpose, products or services, operations, and history. low-level employees perform better if they have this knowledge. The organization's work rules and employee benefits. A public utility's HR department may have a brochure explaining formalized work rules, overtime requirements, grievance procedures, and elaborate employee benefits. A technology start-up may be so fluid that many of these matters will have not been established yet. Even so, there are matters of law (such as those pertaining to sexual harassment) affecting work operations that every employee should be made aware of.Which business strategy offers the highest returns: (1) downsizing; (2) total quality management, which focuses on work methods and process control; or (3) employee involvement, which focuses on upgrading workers' skills and knowledge?The answer is employee involvement.

In hiring, you always try to get people whose qualifications match the requirements of the job. Quite often, however, there are gaps in what new employees need to know. These gaps are filled by training. The training process involves five steps, as shown below.

TrainingDevelopment

upgrading skills of technical and operational employees Electronics technicians, data processors, computer network administrators, and X-ray technicians, among many others, need to be schooled in new knowledge as the requirements of their fields change. Training refers to educating technical and operational employees in how to better do their current jobs. upgrading skills of professionals and managers Accountants, nurses, lawyers, and managers of all levels need to be continually educated in how to do their jobs better not just today but also tomorrow. Development refers to educating professionals and managers in the skills they need to do their jobs in the future

On-the-Job TrainingOff-the-Job Training

This training takes place in the work setting while employees are performing job-related tasks.

Four major training methods are coaching, training positions, job rotation, and planned work activities.This training consists of classroom programs, videotapes, workbooks, and the like.

Lots of off-the-job training consists of computer-assisted instruction (CAl), in which computers are used to provide additional help or to reduce instructional time.

Performance AppraisalFeedback about how you're doing at work is part of performance appraisal, which consists of(1) assessing an employee's performance and (2) providing him or her with feedback.

Objective AppraisalSubjective Appraisal

Objective appraisals, also called results appraisals, are based on facts and are often numerical. They measure results as it doesn't matter if two salespeople have completely different personal traits if each sells the same number of washers and dryers They are harder to challenge legally not being as subject to personal biasSubjective appraisals are based on a manager's perceptions of an employee's (1) traits or (2) behaviours. Trait appraisals are ratings of such subjective attributes as "attitude," "initiative," and "leadership." Trait evaluations may be easy to create and use, but their validity is questionable because the evaluator's personal bias can affect the ratings. Behavioural appraisals measure specific, observable aspects of performance-being on time for work, for instance-although making the evaluation is still somewhat subjective. An example is the behaviourally anchored rating scale (BARS), which rates employee gradations in performance according to scales of specific behaviours.

Who Should Make Performance Appraisals?Peers and subordinatesCustomers and clientsSelf-appraisals

Co-workers, colleagues, and subordinates may well see different aspects of your performance. Such information can be useful for development, although it probably shouldn't be used for evaluation.(Many managers will resist soliciting such information about themselves, of course, fearing negative appraisals.)Some organizations, such as restaurants and hotels, ask customers and clients for their appraisals of employees. Publishers ask authors to judge how well they are doing in handling the editing, production, and marketing of their books. Automobile dealerships may send follow-up questionnaires to car buyers.How would you rate your own performance in a job, knowing that it would go into your personnel file? Probably the bias would be toward the favourable. Nevertheless, self-appraisals help employees become involved in the whole evaluation process and may make them more receptive to feedback about areas needing improvement.

360-Degree Assessment: Appraisal by EverybodyAll these may be used in a technique called 360-degree assessment in which employees are appraised not only by their managerial superiors but also by peers, subordinates, and sometimes clients, thus providing several perspectives.1. An employee chooses between 6 and 12 other people to make evaluations, who then fills out anonymous forms, the results of which are tabulated by computer.2. The employee then goes over the results with his or her manager and together they put into place a long-term plan for performance goals.3. Improvement is most likely to occur when feedback indicates that change is necessary, recipients have a positive feedback orientation, perceive a need to change their behaviour, react positively to feedback, believe change is feasible, set appropriate goals to regulate their behaviour, and take actions that lead to skill and performance improvement.Forced Ranking: Grading on a CurveIn forced ranking performance review systems, all employees within a business unit are ranked against one another and grades are distributed along some sort of bell curve. Top performers (such as the top 20%) are rewarded with bonuses and promotions, the worst performers (such as the bottom 20%) are rehabilitated or dismissed. For instance, every year I 0% of GE's managers are assigned the bottom grade, and if they don't improve, they are asked to leave the company. However, if the system is imposed on an organization overnight without preparation, by pitting employees against one another, it can produce shocks to morale, productivity, and loyalty. There may also be legal ramifications, as when employees filed class-action lawsuits alleging that the forced ranking methods had a disparate effect on particular groups of employeesEffective Performance Feedback Formal appraisals are conducted at specific times throughout the year and are based on performance measures that have been established in advance. Informal appraisals are conducted on an unscheduled basis and consist of less rigorous indications of employee performance.Managing an Effective Workforce: Compensation and BenefitsCompensation has three parts: (1) wages or salaries, (2) incentives, and (3) benefits.Wages or SalariesIncentivesBenefits

Base pay consists of the basic wage or salary paid employees in exchange for doing their jobs.

The basic compensation is determined by all kinds of economic factors: the prevailing pay levels in a particular industry and location, what competitors are paying, whether the jobs are unionized, if the jobs are hazardous, what the individual's level is in the organization, and how much experience he or she has.

To induce employees to be more productive or to attract and retain top performers, many organizations offer incentives, such as commissions, bonuses, profit-sharing plans, and stock options

Benefits, or fringe benefits, are additional nonmonetary forms of compensation designed to enrich the lives of all employees in the organization, which are paid all or in part by the organization. Examples are many: health insurance, dental insurance, life insurance, disability protection, retirement plans, holidays off, accumulated sick days and vacation days, recreation options, country club or health club memberships, family leave, discounts on company merchandise, counselling, credit unions, legal advice, and education reimbursement . For top executives, there may be "golden parachutes," generous severance pay for those who might be let go in the event the company is taken over by another company.

Managing Promotions, Transfers, Disciplining & DismissalsPromotionMoving an employee to a higher-level position-is the most obvious way to recognize that person's superior performance (apart from giving raises and bonuses). Fairness It's important that promotion be fair. The step upward must be deserved. It shouldn't be for reasons of nepotism, cronyism, or other kind of favouritism. Non-discrimination The promotion cannot discriminate on the basis of race, ethnicity, gender, age, or physical ability. Others' Resentments If someone is promoted, someone else may be resentful about being passed over. As a manager, you may need to counsel the people left behind about their performance and their opportunities in the futureTransfer: Moving SidewaysTransfer is movement of an employee to a different job with similar responsibility.1. to solve organizational problems by using their skills at another location; 2. to broaden their experience in being assigned to a different position;3. to retain their interest and motivation by being presented with a new challenge; or 4. to solve some employee problems, such as personal differences with their bosses.Disciplining & Demotion: The Threat of Moving Downward Discipline: Poorly performing employees may be given a warning or a reprimand and then disciplined. That is, they may be temporarily removed from their jobs, as when a police officer is placed on suspension or administrative leave-removed from his or her regular job in the field and perhaps given a paperwork job or told to stay away from work . Demotion: That is, have his or her current responsibilities, pay, and perquisites taken away, as when a middle manager is demoted to a first-line manager.Dismissal: Moving Out of the Organization Layoffs dismissed temporarily -as when a carmaker doesn't have enough orders to justify keeping its production employees-and may be recalled later when economic conditions improve. Downsizings downsizing is a permanent dismissal - automaker discontinuing a line of cars or on the path to bankruptcy might permanently let go of its production employees Firings dismissed permanently "for cause": absenteeism, sloppy work habits, failure to perform satisfactorily, breaking the law, and the like.