Exam 1 Study Guide
Exam 1 Study Guide MGMT 44301 - 001
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This 191 page Study Guide was uploaded by boilermaker2016 on Wednesday March 2, 2016. The Study Guide belongs to MGMT 44301 - 001 at Purdue University taught by Deanna L Kola in Fall 2015. Since its upload, it has received 204 views. For similar materials see Management Of Human Resources in Media and Public Affairs at Purdue University.
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Management of Human Resources MGMT 44301 Spring 2016 Dr. Deanna Kolar Course Basics • My office: Krannert 503 • Phone: 494-3447 • Email: firstname.lastname@example.org • Office Hours: By appointment Textbook Human Resource Management: Functio, ns Applications and Skill Development Lussie, R. and Hendon, J. (2016) Sage Publications Course Assessment • 3 Exams – 90% [Examscumulative] • Attendance / Particin 10%– Class Attendance • Attendance taken each class 5 or fewer absences = 10% 6-9 absence= 5% 10 or more absences = 0% Class Participation / Group W ork • Class discussion • In-class group exercise participation newspapers) and / or failure to participate in group exercise discussions may ing also result in point reductions. What is / are Human Resources? 1) “The people” 2) The policies, practices, and systems that influence employees’ behavior, attitudes, and performance. Variations in how Human Resources are managed • HR v. Management Responsibility for HRM • Degree of Centralization highly centralized à headquarters controls HR decisions highly decentralized à business unit head controls HR decisions • Degree of Formalization (rules and procedures) • advantage Importance of HRM – using people to create strategic • Staffing of HR Department with HR Experts versus Management rotations Strategic Perspectives in HRM January 13, 2015 Developing HR Strategies Where are we now? Where do we want to be in 1, 2, 3, or even 5 years’ time? How are we going to get there? Corporate Strategy Addresses questions relating to the business in which the company should be operating For example: § Diversifications § New Ventures § Acquisitions and divestments § Allocation of resources among these different facets of the business. Strategic Management A continuous process consisting of a sequence of activities: Strategy formulation Strategic Planning Implementation Review Updating Strategic HRM The overall direction an organization wishes to pursue in achieving its objectives through people. Stakeholders “Community at la”ge LaborUnions Investors Managers Employees How Strategy Affects HRM Differentiation Cost Leadership Cost Leadership u Cost leadership means the lowest cost of operation in the industry. u maximize employee efficiency and effectiveness through highly specialized jobs that require people to repeat the same task. HRM and Differentiation To maximizeem ployee flexibility and adaptabilitythrough jobs that require cross - functional teams to innovate and try new processes in uncertain environments. Strategic Mission Statement Organizations need to establish a strategic framework for significant success. This framework consists of: • a vision for the company’s future, • a mission that defines what it is doing, • values that shape its actions, • strategies that zero in on key success approaches, and • goals and action plans to guide daily, weekly and monthly actions. SWOT ANAL YSIS STRENGTHS WEAKNESSES < Internal > THREATS OPPORTUNITIES < External > PESTEL -analysis P olitical factors Economic factors factors Environmental S ocio-cultural factors factors Technological factors Group Exercise Hypothetical : Purdue University has decided to create a satellite campus in southern Italy. Perform a strategic analysis of the project using PESTEL criteria. *Place extra emphasis on the human apital aspects. Additional considerations: • What does this strategic change mean for the employees in terms of required competence, motivation and values? • How might this impact HR- related activities and processes (e.g. recruiting, HR development, compensation)? Have one group member write down the team’sideas. All members names should be included on that one submission. Make sure to turn in your results at the end of class. Strategic Fit “Fit” – the pattern of planned human resource deployments and activities intended to enable the organization to achieve its goals. Horizontal Fit Vertical Fit A congruence among The alignment of HRM the various HRM practices with the strategic practices. management process of the organization. Vertical Fit Alignment of HRM practice With the overall strategic management process of the firm Horizontal Fit Horizontal fit refers to the congruence among the various HRM practices Configurational Approach “HR Bundles” Focuses on the search for distinctive conf gurations– arrangement of “joined up” HR practices that when combined will function more effectively by complementing and supporting each other. Sample HR Bundle Best Practice Approach Belief that there is a set of best HRM practices and that their use will bring about increased organizational performance. Criticism:What might work well in one organization may not work in another because it does not mesh with the organization’s strategy, culture, management style, technology or working practices. Best Fit Approach There can be no universal prescription for HRM practices and policies. Instead, it is all contingent on the organization’s context, culture and business strategy. What “fits” with this organization? Tools for measuring Strategic HRM Economic Value Added A measure of the profits that remain after the cost of the capital has been deducted from operating profits. Return on Investment A measure of the financial return we receive because of a process that we do to invest in our organization or its people. Looks at the cost of providing the process and compare it to the returns received due to that process. Areas of HR where ROI analysis is helpful -(training, outsourcing, benefits, etc.) HR Scorecard 1) HR deliverables-what function does HR perform, and which of those services add value to the organization. 2) HR system alignment – how set of HR practices fit together and work effectively 3) HR system alignment with company strategy 4) HR efficiency measures -process of measuring the returns received by organization as a result of the HR policies Legal Considerations in HR Dr. Deanna Kolar Spring 2016 Why Understanding the Legal Environment Is Important } Assists in considering what you “have to” do versus what you “should” do } Helps employees understand the limitations of the HR and Legal departments } Facilitate a fair and humanen vironment } Can limit potential liability ◦ Who to hire ◦ How to compensate employees ◦ What benefits to offer ◦ How to accommodate employees with dependents ◦ How and when to fire employees Equal Employment Opportunity Laws Title VII of the Civil Rights Act of 1964 The Equal Pay Act of 1963 The Age Discrimination in Employment Act of 1967 Americans with Disabilities Act of 1990 State and Local Equal Employment Opportunity Laws The effect of the state and local laws is usually to further restrict employers’ treatment of job applicants and employees. • State and local laws cannot conflict with federal law but can extend additional coverage to protected groups. • The EEOC can defer a discrimination charge to state and local agencies that have comparable jurisdiction. Title VII of the Civil Rights Act of 1964 • An employer cannot discriminate on the basis of race, color , religion, sex, or national origin with respect to employment. – Coverage • All public or private employers of 15 or more persons for 20 or more weeks in the currentor preceding calendar year (42 U.S.C. § 2000e(b)) • All private and public educational institutions, the federal government, and state and local governments The Equal Pay Act of 1963 An amendment to the Fair Labor Standards Act . }Requires that male and female workers receive qual pay for work requiring equal skill, effort and responsibility, and performed under similar working conditions . }Wage differentials are permitted if they are based on factors other than sex, such as a: • seniority system • merit system or • system measuring earnings by quantityquality of production. Protected Class / Suspect Classification ◦ A group of people who have suffereddiscrimination in judicial systemo are give special protection by the ◦ The groups protectedfrom the employment discrimination by law. These groups include: • men and women on the basisof sex • any group which shares a common race religion , color, or national origin • people over 40 • people with physical or mental handicaps. ◦ Every U.S. citizen is a member of some protectedclass, and is entitled to the benefitsof EEO law. Disparate (adverse) Treatment vs. Disparate (adverse) Impact • Disparate treatment Intentionadiscrimination on the part of the employer • Disparate impact A practice or policy that has a greater adverse impact on the members of a protected group than on other employees, regardless of intent. Disparate / Adverse Impact 4/5ths Rule The alleged disadvantaged group must have a success rate of4 /5ths (80%) of the most successful group. Example: 100 people applied for an Accountant position.Fifty females and fifty during the hiring process, while 48 females What is 80% of 48? t test 38. - 20 males is less than 80% of the a cceptance ra o there is adverse impact. Determining Discrimination McDonnell Douglas Test McDonnell Douglas Test to Establish a Prima Facie (legally sufficient)Case of Discrimination: The person is a member of a protected class. The person applied for a job for which he or she was qualified. The person was rejected, despite being qualified. After rejection, the employer continued to seek other applicants with similar qualifications. ◦ The burden now shifts to the employer to prove that the action taken against the individual was not discriminatory. Defense of Discrimination Charges ◦ Job Relatedness: Business can show that the decision was made for job -related reasons. ◦ Seniority: Formal seniority systems are permitted- must be well established and applied universally ◦ Business necessity: Defense created by the courts, which requires an employer to show an overriding business purpose for the discriminatory practice and that the practice is therefore acceptable. (drug testing) o Bona Fide Occupational Qualification Bona Fide Occupational Qualification Requirement that an employee be of a certain religion, sex, or national origin where that is reasonably necessary to the organization’s normal operation. The First Amendment will override Title VII in artistic works where the race of the employee is integral to the story or artistic purpose. (This consideration is not limited to race.) A person cannot claim he or she has been discriminated against if he or she cannot fulfill reasonable requirements associated with performing a job and this canaffect a person’s compensation . Examples of BFOQ • Mandatory retirement ages for bus drivers and airline pilots, for safety reasons. • Advertising, a manufacturer of men's clothing may lawfully advertise for male models. • A religious school may lawfully require that members of its faculty be members of that denomination, and may lawfully bar from employment anyone who is not a member. • Note: Bona fide occupational qualifications generally only apply when the status is considered reasonably necessary to the normal operation of a particular business. BFOQ and Customer Satisfaction Mere customer satisfactionis not enough to justify a BFOQ defense. (e.g. customer preference for females does not make femininity a BFOQ for the occupation of flight attendant.) There may becases in which customer preferenceis a BFOQ. For example,femininity is reasonably necessary for Playboy Bunnies. Customer preferencecan "'be taken into accountonly when it is based on the company's inability toperform the primary function or serviceit offers, where sex or sex appeal is itself the dominant serviceprovided." Title VII and Pregnancy PregnancyDiscrimination Act (PDA) of 1978 • A Title VII amendment that prohibits sex discrimination based on “pregnancy, childbirth, or related medical conditions.” • If an employer offers its employees disability coverage, then it must treat pregnancy and childbirth like any other disability,and include it in theplan as a covered condition. ** Being pregnanton its own is not a disability. • time missed followingdelivery or medical complicationsduring thepregnancy canmake it a disability. Title VII: Sexual Harassment • Sexual harassment – Harassment on the basis of sex that has the purpose or effect of substantially interfering with a person’s work performance or creating an intimidating, hostile, or offensive work environment. • Employers have an affirmative duty to maintain workplaces free of sexual harassment and intimidation. Discrimination in hiring Sexual Harassment Defined } Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that takes place under any of the following conditions: ◦ Submission to such conduct is made either explicitly or implicitly a term or condition of an individual’s employment. ◦ Submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual. ◦ Such conduct has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive work environment. Legal Considerations in HR Dr. Deanna Kolar Spring 2016 Sexual Harassment Two Broad Categories } Quid pro quo ◦ Occurs when “submission to or rejection of sexual conduct is used as a basis for employment decisions.” ◦ Involves a tangible or economic consequence, such as a demotion or loss of pay } Hostile Work Environment ◦ Occurs when unwelcome sexual conduct has the purpose or effect of intimidating, hostile, or offensive working environment.g an ◦ Dirty jokes, vulgar slang, nude pictures, swearing, and personal ridicule and insult constitute sexual harassment when an employee finds them offensive. ◦ Courts use a “reasonable person” test for hostile environment. Sexual Harassment Two Broad Categories • In a quid pro quo case it is not necessary for the employee to have suffered a tangible job action to win the case. • The employer (in its defense) must show that it took reasonable care to prevent and promptly correct any sexually harassing behavior and that the employee unreasonably failed to take advantage of the employer’s policy. Sexual Harassment Reducing Potential Liability } Take all complaints about harassment seriously. } Issue a strong policy statement condemning such behavior. } Inform all employees about the policy and of their rights. } Develop and implement a complaint procedure. } Establish a management response system ( immediate investigation by senior management). } Begin management training sessions with supervisors and managers to increase their awareness of the issue . s Sexual Harassment Reducing Potential Liability } Discipline managers and employees involved in harassment . } Keep records of complaints, investigations, and actions taken. } Conduct exit interviews that uncover any complaints and that acknowledge by signature the reasons for leavi.g } Re-publish the sexual harassment policy periodically . } Encourage upward communication through periodic written attitude surveys, hotlines, suggestion boxes, and other Too Attractive? Beauty and the Beast Age Discrimination The Age Discrimination in Employment Act of 1967 (ADEA) • The act prohibiting arbitrary age discrimination and specifically protecting individuals over40 years old. • Affects employers with 20 or more employees. Age Discrimination Americans with Disabilities Act (ADA) Americans with Disabilities Act (ADA) ADA of 1990 • Requires employers to makereasonable accommodationsfor disabled employees; it prohibits discrimination against disabled persons. What classifies as a “Disability?” • A physical or mental impairment that substantially limits one or more major life activities. Americans with Disabilities Act (ADA) • Qualified individuals – Under ADA, those who can carry out the essential functions of the job. • Reasonable accommodation – If the individual can’t perform the job as currently structured, the employer must make a “reasonable accommodation” unless doing so would present an “undue hardship.” Americans with Disabilities Act (ADA) • Employers are not required to lower existing performance standards or stop using tests for a job. • Employers may ask pre -employment questions about essential job functions but can not make inquiries about disability. ◦ Essential (each person in certain position must be able to do) vs. Marginal (not critical to job performance ) Medical Examinations • An employer may not require applicants to take a medical examination before they are offered a job. • Following a job offer, an employer can condition the offer on the applicant passing a required medical examination, but only if all entering employees for that job category have to take the examination. • An employer cannot reject a person holding a job offer because of information about adisability revealed by the medical examination, unless the reasons for rejection ar b-related and necessary for the conduct of the employer's business. • The results of all medical examinations must be kept confidential, and maintained in separate medical files. Americans with Disabilities Act (ADA) • Employers should have up -to-date job descriptions that identify the current essential functions of the job . • Courts will tend to define “disabilities” quite narrowly . • Employers are not required to tolerate misconduct or erratic performance even if the behaviors can be attributed to the disability . • Employers do not have create a new job for the disabled worker or reassign that person to a light -duty position for an indefinite period, unless such a position exists. Allentown Threat to Safety The ADA permits an employer to refuse to hire an individual if she poses a irect threat to the health or safety of himself or others. A direct threat means a significant risk of substantial harm. Drug Addictionunder the ADA ADA provides limited protection from discrimination for recovering drug abusers and for alcoholics . • Employers may keep their workplace free from the illegal use of drugs and the use of alcohol. • An individual who is currently engagingin the illegal use of drugs is not considered an“ individual with a disability” when the employer acts on the basis of such se. • An employer may discharge or deny employment to persons who currently engage in the illegal use of drug.s • It is not a violation of the ADA for an employer to give tests for the illegal use of drugs. Discussion Question Deanna Kolar Spring 2016 Job Analysis Job Descriptions (a list of what the job entails) Job Specifications what kind of people to hire for the job . (qualifications, KSAstheyshould possess). The procedurethrough which we determine the task, duties and responsibilitio efspositions and the characteristicsof the peopleto hireforthepositions Developing a Work Flow Analysis Centralized vs. Decentralized Organizational Structure Centralization A function of how muchdecision-makingauthority is pushed down to lower levels in an organization;the morecentralizedan organization,the higherthe level at whichdecisionsaremade. Decentralization Thepushingdownof decision -makingauthority tothe lowest levels of anorganization 4 Job Descriptions A list of tasks, duties, and responsibilities (TDRs) that a particular jobentails. Key components: JobTitle Brief description of the TDRs List of the essential duties with detailed specifications of the tasks involved in carrying out each duty Sample Job Description Job (Person)Specification A list of the knowledge, skills, abilities,and other characteristics (KSAOs) that an individual must or ideally have to performa particularjob. Knowledge: factual or procedural information necessary for successfullyperforming a task. Skill:anindividual’slevelof proficiencyatperforming a particular task. Ability:a more general enduring capability that an individualpossesses. OtherCharacteristics: job-related licensing,certifications, orpersonality traits. Sample Job Specifications Sources of Job Information The incumbents– peoplewhocurrently hold the positionin theorganization. Dictionary of Occupational Titles (DOT)– published by theU.S. Department of Labor Occupational Information Network(O*NET)– an onlinejobdescriptiondatabasedeveloped bythe LaborDepartment Job Analysis Process Source:Fisher, Schoenfeldt,& Shaw(2006), Figure 4.1,p. 141 Phase 1: Scope of the Project Decidepurposesof thejobanalysisproject How do you want to use the Job Descriptions? Jobdesign Recruiting Selection Performance appraisal Training Compensation Decidewhichjobs toincludein thejobanalysis project. Phase 2: Methods of Job Analysis Decidewhatdata(information) is needed At a minimum, for each job being analyzed,we need dataon: Tasks & duties performed on the job Qualifications requiredbythe job Identifysourcesof job data Jobincumbents: observation, interview, questionnaire Supervisor of job: interview, questionnaire Other sources Phase 2: Methods (cont.) Select specific proceduresof job analysis Narrative Job Descriptions Collectqualitative data (nonumbers) Engineering approaches : micro-motionstudies (time & motion studies) Measurebody motions involved in performing the job. Quantitativeapproach: utilizesa compiled inventory of the functions or work activities that can make up any job. (1) Things (2)Data (3) People (4) WorkerInstructions (5) Reasoning (6)Math (7) Language Phase 3: Data Collection & Analysis Collect jobdata • Get the organizationready • Reducesourcesof bias • Conducteffective interviews • Analyzethe jobdata • Report results to organization • Write the job descriptions • Periodically recheck the job data • Update& revisethe job descriptions as needed Phase 4: Assessment Evaluate the Job Analysis project Continuousimprovement: learn fromboth successes& mistakes tocontinuouslyget better Did the projectfinishon -time and unde-budget? If not, whatwentwrong?Whatwouldyoudo differently? Didyou collectthe correctinformation? What additional information wouldyoucollectif you did the project over? What information wouldyou notcollect? Are the Job Descriptions being used as intended? If not, what’smissing tomakethemuseful? JOB DESIGN Dr. Deanna Kolar Spring 2016 What is Job Design? Job design refers to the way that a set of tasks, or an entire job, is organized. Job design helps to determine: • what tasks are done, • how the tasks are done, • how many tasks are done, • and in what order the tasks are done. Approaches to Job Design Mechanistic Approach Motivational Approach Human Factors Approach Mechanistic Approach Scientific Management Frederick Winslow Taylor (1911) • Emphasizes rationalization and standardization of work through division of labor, time and motion studies, work measurement, and piece-rate wages. • Work portioned into small, simple standardized tasks that can be easily performed with little training. • Rinclined to be lazy) d idea about human behavior (that man is naturally Fordism Henry Ford - modern model of mass production / first moving assembly lines, put into operation at Ford's Model T automobile plant in 1914. Fordisminvolved standardizing a product and manufacturing it by mass means at a price so low that the common man could afford to buy it. - Craft-based work - Intensified Division of labor - Increased mechanization - Skilled Laborers with substantial control over - Large scale manufacturing their work conditions process Positives and negatives of Mechanistic approach Does noor the “higher” needs of workers. individuals Human Factors Approach Designing jobs by taking into account the physical dimensions of the body, mechanical principles that govern physical movements and physiology. Examples of the Human Factors Design Approach • Designing work processes and workstations that prevent injuries and cumulative trauma disorders. • Motivating people to work safely. • Devising jobs that are satisfying and minimize mental stress. • Designing manufacturing systems that maximize quality and productivity while taking human limitations into account. • Promoting overall fitness with gym facilities on site to limit injury and increase productivity on the job. Motivational Approach Focus on individual motivational needs to promote job satisfaction and productivity. Hackman and Oldham’s Job Characteristic Model Hackmanand Oldham’s (1976) job characteristics model identifies five core job Characteristics: 1) Skill Varie nvolves the number of different types of skills used to do a job. 2) Task Identitiy matter of realizing a visible outcome of performing a task. 3) Task Significaninev olves how important the task is to others in the company, which is important in showing employees how the work they do fits in with that done in the rest of the organization. 4) Autonomyinvolves the degree of freedom, independence, and decision-making ability the employee has in completing assigned tasks. 5) Feedback describes how much and what type of information about job performance is received by the employee. Intrinsic Motivation Core job Psychological Work characteristics states outcomes Skill Variety Meaningfulness Task Identity of work Intrinsic Task Significance motivation Responsibility Autonomy for outcomes Quality of work Low Knowledge of absenteeism Feedback actual results & turnover of work 27 Job Rotation Assigning individuals to a variety of job positions. – Employees rotate through a number of job positions that are at approximately the same level and have similar skill requirements. – While job rotation has proven particularly beneficial in manufacturing settings, it can also be used effectively in service organizations. Pros and Cons of Job Rotation Postives Negatives • Reduce boredom and • Resistance to change fatigue • Training cost and lost time • Improved motivation and • Safety issues retention • Administration time and • For newer hires helps with expense of fitting orientation and placement employees into new jobs • Career development (skills, experience) • Succession planning / Corporate strategy Job Enlargement • Programs designed to broaden job scope. – Job scope refers to the number of different activities required in a job and the frequency with which each activity is performed. Job Enlargement “Horizontal loading of a job” • Increases the scope of a job through extending the range of its job duties and responsibilities.. • Job enlargement seeks to motivate workers through reversing the process of specialization. • Results in increased skill variety and increased task identity (employees see a whole and identifiable piece of work). • A typical approach might be to replace assembly lines with modular work; instead of an employee repeating the same step on each product, they perform several tasks on a single item. Negatives of Job Enlargement • Increased training – lost time and costs • “Job creep”-employee resentment at increased job load Job Enrichment “Vertical Job Loading” • Job enrichment tries to embellish the job with factors that Herzberg characterized as motivators: Achievement, recognition, increased responsibilities, opportunities for growth, advancement and increased competence. • There is an attempt to build into jobs a higher sense of challenge and Achievement. • Vertical job loading entails redesigning jobs to give: 1. Greater responsibility, 2. Greater autonomy, 3. More immediate feedback to the individual or group. Maslow’s Hierarchy of Needs NEED SELF- ACTUALIZATION ESTEEM NEEDS LOVE, AFFECTION, AND BELONGINGNESS NEEDS SAFETY NEEDS PHYSIOLOGICAL OR SURVIVALNEEDS “Issues” with Maslow’s Need Model 1. Businesses typically do well satisfying lower order needs. 2. Model stipulates that there are 5 needs and that the order is “fixed”. Research indicates some may only have 2-3 need hierarchy; others 5-6. The order may also be inverted and meeting needs outside of work not accounted for. 3. Model not developed from average employees. Herzberg – Two Factor Theory (1959) People are influenced by two factors: Hygiene factors are needed to ensure an employee does not become dissatisfied. They do not lead to higher levels of motivation, but without them there is dissatisfaction. Motivation factors re needed in order to motivate an employee into higher performance. These factors result from internal generators in employees. Motivator vs. Hygiene factors Motivator Factors Hygiene Factors § Achievement § Pay and Benefits § Recognition § Company Policy and Administration § Work Itself § Relationships with co-workers § Responsibility § Supervision § Promotion § Status § Growth § Job Security § Working Conditions § Personal life Attributes of Good Job Design • An appropriate degree of • A perceived contribution to a repetitiveness useful product or service • An appropriate degree of • Opportunities for personal attention and mentala bsorption relationships and friendships • Some employee responsibility for • Some influence over the way decisions and discretion work is carried out in groups • Employee control over their own • Use of skills job • Goals and achievement feedback Job Design Getting the Right People: Recruitment & Selection February 4, 2016 Recruitment A continuous process to search for and attract potential job candidates in sufficient numbers and quality to allow the organization to select Qualified Individuals to fill its job needs. Selection Identifying candidates that will make the most appropriate contribution to the organization at the time of hiring and in the future. Find qualified individuals with a good fit for your culture and their development. Key Stages of Recruitment and Selection Who do we want? How do we attract them? How can we identify them? How do we know if we’ve Who should be involved in got it right? the process? Three main stages in staffing process 1 2 3 Identify and Attract define the potential Select and position employ the requirement. employees appropriate This involves the Using various person from preparation of: methods for doing the job § Job Descriptions this applicants § Job Specifications § Person Specifications Recruitment is a Continuous Process • Staff departures (e.g. retirements, firings, resignations) • Changes in business requirements (e.g. new products, markets, expanded operations, new technology) • Changes in business location (a relocation triggers the need for substantial strategic recruitment) • Promotions What is internal recruitment? Filling of job vacancies from within the business may be a key part of your culture. A business might decide that it already has the right people with the right skills to do the job: § Effective Training and Development Program § Succession Planning § Performance Management alignment Staff noti oards , (company website), In-house magazines / newslette, Staff meetings, Internal networks – word of mouth Pros and Cons of Internal Recruitment Advantages of internal recruitment • Provides existing employees the opportunity to advance their careers in the business • May help to retain staff who might otherwise leave • Requires a shorter training period and retains institutional knowledge • Employer know more about the internal candidate's attributes (reduces risk of adverse selection) • Usually quicker and less expensive than recruiting from outside Disadvantages of internal recruitment • Limits the number of potential applicants • External candidates may be better qualified • Another vacancy will be created that has to be filled…trickle down • Existing staff may feel they have the automatic right to be promoted, whether or not they are qualified/competent. Communication to individuals not selected. • Business may become resistant to change or too ingrown; by recruiting from outside, new perspectives and attitudes are introduced. External Recruitment Context Searching for candidates outside the organization can take place in local, regional, national or international job markets. International National Regional Local How should a qualified candidate specification be created? COMPETENCIES ESSENTIAL? PREFERRED? Competencies might include some or all of the following: • Physical attributes (e.g. lifting ability, climbing stairs or BFOQ) • Knowledge/Experience Attainments (e.g. highest level of education completed, relevant experience, ability to supervise/manage) • Problem Solving (e.g. verbal reasoning; numerical aptitude; complexity) • Interests (social/community activities; sporting activities; professional orgs) • Required availability (e.g. ability to work shifts; full or part time; temporary) How Do We Attract Them? • Informal personal contacts/networks • Formal personal contacts (career fairs) • Advertising (newspapers, specialty/trade publications, internet) • External assistance (job centers, career services, employment agencies) Principles of Diversity Management • Establish business principles & strategy for managing a diverse workforce • Create a positive and inclusive work environment • Promote personal and professional development • Attract talent that reflects the demographics of your geographic area, employment markets and product distribution • Remove barriers that hinder progress and establish accountability Barriers to Diversity Examples • Limiting areas of consideration; untrained recruiters • Lack of diverse qualified applicant pool • Lack of diversity at the senior levels of organization • Categorizing people into certain positions • Always recruiting from same source • “Golf course” meetings • Lack of communication • Entrenched Culture Employment Recruitment Agencies / Professional (specialized)Recruiters §May specialize in specific sectors (e.g. legal, tax, research, secretarial). §Provide list of vetted and qualified candidates. §Can supply temporary or interim employees. §May reduce the administrative burden of recruitment. §The cost for agency fees charged is typically 30% of the first year remuneration fo he candidate selected. How Do We Know If We Got It Right? • Look to retention rates • Promotion rates • How are recruits performing/advancing five years after joining the company? Employee Selection Dr. Deanna Kolar February 9, 2016 A Poor Selection Process Can Result In: Wasting time and mone yh iring a mismatch will likely require going through the whole process again. Reduced productivity – mismatches perform their jobs less successfully than good fits. Negligent hires– hiring someone who poses a danger to co-workers, customers, suppliers, or other third parties, who ultimately harms someone in the course of their work for the company u The company can be held liable. Balancing Job Fit and Organization Fit • Job-based fit seeks to match an individual’s abilities and interests with the demands of a specific job. • Organization-based fitis concerned with how well the individual’s characteristics match the broader culture, values, and norms of the firm Preliminary Screening 1) Applicants’ information is compared to job specifications 2) Weed out unqualified applicants and narrow down to the best applicants. 3) Informationis verified to detect fictitious or misleading information and to protect the organization against negligent hiring claims. What Makes a Selection Method Good? Testing Tests measure knowledge, skill, and ability, as well as other characteristics, such as personality traits. • Cognitive Ability Testing- measures learning, understanding, and ability to solve problems. e.g. Intelligence Tests. • Personality testing measures patterns of thought, emotion, and behavior . e.g. Myers Briggs • Physical Ability Testing-assesses muscular strength, cardiovascular endurance, and coordination. • Integrity Testing- are designed to assess the likelihood that applicants will be dishonest or engage in illegal activity. Prohibited / Limited T esting • Polygraph tests – Employee Polygraph Protection Act (EPPA) makes it illegal to use a polygraph, but there are some exceptions: jobs in security and handling drugs • Genetic testing – Genetic Information Nondiscrimination Act (GINA) protects people from discrimination by health insurers and employers on the basis of their DNA information. Background Checks Are needed to help prevent negligent hiring- • Credit checks (disfavored – unless there is a close relation to the essential functions) • Reference checks • Web searches • Criminal background checks Criminal convictions • Have you ever been CONVICTEDof a crime? • May not inquire about ARRESTS? Exceptions relating to convictions § Specific categories of workers, including most bank employees, securities industry and commodities workers, and nuclear power employees. § Many statutes specify that those working in schools, adult care homes, nursing homes, home care agencies, and facilities for those with mental and physical disabilities may—and often must—be subjected to criminal background checks before being allowed on the job. Expunged Criminal Records Expungement is a method for cleaning up a person’s criminal record. This procedure reopens the criminal case, dismisses the conviction, and re-closes the case without a conviction. • In effect, the person is no longer a convicted person. • The case record itself will still exist, and the expungement will appear on the person’s record. • The key issue is: Once a conviction is expunged, it becomes an arrest that did not end in conviction. Drug T esting Applicants State laws typically allow employers to test applicants for drugs. Employer must follow the state's rules about providing notice and following procedures intended to prevent discrimination and inaccurate samples. For example, a number of states allow applicant testing only if: • The applicant knows that such testing will be part of the screening process for new employees (for example, because the job application said would be required ).ployer's online job posting stated that a drug test • Tpassing a drug test .dy offered the applicant the job, contingent on • All applicants for the same job are tested similarly . • The tests are administered by a state -certified labora.ory Legal Constraints to Drug Testing Current Employees • In some states, companies cannot conduct blanket drug tests of all employees or random drug tests; the testing must be focused on an individual: – the employer has a good reason to believe that person is using drugs – the person's job carries a high risk of injury or damage if performed by someone who is under the influence. • Courts have generally ruled that companies may test employees after an accident that could have been caused by drug use or an incident in which the employee appeared to be impaired. Challenging Drug T ests • An employee can always refuse to take a workplace drug test. But, if you are fired becau f refusal, he/she may have little recourse. • (In some states, you might be denied unemployment benefits if you are fired for refusing to take a drug test.) • An employer needs only to show that there was good reason to believe ta hae mployee was a safety hazard on the job or that he seemed unable to perform the work required. • If you have been given a drug test and unfairly suspended or demoted because of ian employee may argue that the testers did not meet with the strict requirements for form and procedure set out in your state law. • Employers are free to add safeguards to protect against specimentampering—requiring those taking the test to remove their own clothing and don hospital gowns, or providing a test monitor who checks the temperature of the urine and adds dye to toilet water, as example.s • Most courts have found it reasonable to have a monitor listen as a urine test is administered, a number have found it an unreasonable invasion of privacy for the monitor to watch. Reasonable suspicion to test A reasonable suspicion of drug use must generally be based on actual facts and logical inferences, such as: • direct observation of drug use or its physical symptoms, including slurred speech, agitated or lethargic demeanor, uncoordinated movement, and inappropriate responses to questions • abnormal conduct or erratic behavior while at work, or significant deterioration in work performance • a report of drug use provided by a reliable and credible source that has been independently corroborated • evidence that the employee has tampered with current drug test results • information that the employee has caused or contributed to an accident atw ork • evidence that the employee has used, possessed, sold, solicited, or transferred drugs while working or at work. **In addition, many laws require employers to maintain workplace counseling and outreach programs before they can test employees. Job Interviews Types of Interviews Structured interview – all candidates are asked the same list of prepared questions. of questions but also asks unplanned questions. list Unstructured interview – interviewer has no preplanned questions or sequence of topics. • Is the most susceptible to discrimination claims because introduces the most interviewer bias. Types of Questions Closed-ended – requires a limited response (e.g., yes/no); is appropriate for fixed aspects of the job. Open-ended – requires a detailed response; is appropriate for determining abilities and motivation. Hypothetical – requires candidatest o describe what they’d do and say in a given situation; is appropriate in assessing capabilities. Probing – requests clarification; s appropriate for improving the interviewer’s understanding. Can Ask Can’t Ask Can Ask Can’t Ask Can Ask Can’t ask Applications, Skill Development by Robert 22 N. Lussier and John R. Hendon © 2012 Problems to Avoid During the Selection Process • Rushing • Stereotyping • Halo and horn effects • “Like me” syndrome Horn and Halo Effect Halo Effect Horn Effect If someone has an Also called the "Devil Effect” outstanding characteristic and we allow our positive If a person seems particularly lacking in one reaction to single key trait, then that person characteristic to influence will often be assumed to be total judgment of the deficient in many other individual. traits. Hiring • Compare candidates’ qualifications. • Identify whether they really want to do the job. • Analyze whether they have been honest. • Assess person -organization fit via coworkers’ impressions. • Consider diversity. • Contact the best candidate and offer the job. • If the candidate refuses, or accepts but soon leaves, offer the job to the next-best candidate. Human Resource Development Training, Learning and Talent Management This image cannot currently be displayed. Dr. Deanna Kolar Spring 2016 Definition of Human Resource Development A set of systematic and planned activities designed by an organization to provide its members with the necessary skills to meet current and future job demands. HRD Functions • Training and development (T&D) • Organizational development • Career development Reasons: • Changing workforce demographics • Competing in global economy • Eliminating the skills gap Common Methods of Employee Development Formal Education – courses and degree programs. Experience – job-related experiences, e.g., job rotation. 4 Employee assessments and Psychological Assessments – reveal employee’s style of thinking, interact with others, and manage, views on leadership.e motions. Assess potential to Emotional intelligence assessments – reveal how employees identify, understand and use their emotions and othe o promote working relationships. Relationship Between HRM and HRD of the functions within HRM(HRD) is just one HRM Training and Competencies The type of training offered is based on the competenciesemployees need to have in order to perform their jobs successfully. Competency models – identify the knowledge, skills, and abilities (KSA) needed in order to perform a particular job in the organization and the types of training a new employee or one who changes jobs will need. When is Training Needed? • New employee orientation – the process of introducing new employees to the organization and their jobs. • For new job requirements or processes. • Remediation- the correction of a deficiency or failure in a process or procedure. • Employee development for advancement. A Training Cycle based on an HRD plan Organizational Strategy HRM strategy Training and Development Strategy Analysis of Needs Design of Training Program Monitor and Evaluate Delivery of Training Needs Assessment Phase • Establishing HRD priorities • Defining specific training and objectives • Establishing evaluation criteria Design Phase • Selecting who delivers program • Selecting and developing program content • Scheduling the training program WHO? WHAT? WHEN? Evaluation Phase Determining program effectiveness: • Keep or change providers? • Offer it again? • What are the true costs? • Can we do it another way? When training is not done correctly: • A training course may be poorly designed (e.g., cover the wrong information). • The wrong (e.g., not-yet-ready) employees may participate. 1 • Trainers may create programs that are unnecessary or incomplete. Challenges to the Training Process Return on Investment/Cost Justification – training is time consuming and expensive. Resistance to change and employeei nsecurity. 1 Strategic congruence – justifying the training by ensuring that it furthers the strategic goals of the organization. Scheduling – timing training to minimize problems. Challenges to the Training Process (continued) Employee Readiness • Ability – do employees possess the requisite educational basics to successfully participate n the training process? • Self-efficacy – do the employees believe they have the 1 capability to do something or attain a particular goal? • Willingness –are the employees willing (motivated) to learn what's being taught in a training program? Shaping Behavior – Methods Positive reinforcement – provide a reward in return for a constructive action. Negative reinforcement – the withdrawal of a harmful thing in 5 response to a positive action. 1 Punishment – the application of an adverse consequence or removal of a reward, in order to decrease an unwanted behavior. Extinction– the lack of response, positive or negative, in order to avoid reinforcing an undesirable behavi. Learning Styles (Honey and Mumford, 1992) Activists Reflectors learn best when actively learn best when reviewing involved in the task and reflecting on what has happened and what they have done Theorists Pragmatists learn best when they can learn best when they see relate new information to relevance of new information to concepts or theories real life issues or problems. On-The-Job Training (OJT) Is done at the work site with the resources the employee uses to perform the job. Job Instructional Training – is a very successful OJT four-step model: 1. Preparation of the trainee. 2. Presentation of the task by the trainer . 3. Performance of the task by the trainee. 4. Follow-up. On-The-Job Training (OJT) Advantages Disadvantages • One-to-one training is expensive. • Training can be immediately transferred to the job. • Trainers may not know how to teach, may • Training occurs on the actual job site and be unmotivated or may transfer their own includes all incidental factors associated bad habits. with the job. • The training may be inconsistent unless • The training environment is interactive, trainers follow a standardized training plan. with feedback from the trainer. • The trainer is typically highly competent in • If the equipment is expensive, it may be doing the job. dangerous to have the trainee operate and potentially harm it since they are not yet • The instructor can customize the training skilled operators. to the trainees needs. • Often disrupts the work environment. Classroom Training Advantages Disadvantages • Provides consistent knowledge or information • Often a passive environment, where the to a fairly large number of people about a learner absorbs the information provided. general topic. • Many students can be trained at the same time. • Pace of the training may be too fast for some students and too slow for others, • Information provided to trainees is typically causing anxiety or boredom. more consistent than OJT. • It is more difficult to cater to different • Instructors are usually professional trainers. learning styles in a classroom setting than by using OJT. • Less expensive than OJT due because it's one - to-many training. • Question and answer sessions are somewhat interactive. • Does not disrupt the actual work environment. Distance or E-Learning Advantages Advantages Disadvantages • Training may be available 24/7/365. • Trainees require self discipline. • Students can learn at their own pace. • Trainer may not respond directly to student needs and questions. • No need for a physical classroom or for an instructor to be available at a particular• Often lacks immediate feedback on point in time. trainee success/failure. • No time lost due to commuting. • High initial sta-up costs due to the need to create voluminous online materials. • Providing multiple media can enhance the learning process by matching up • Student dishonesty is more difficult to trainees with different learning styles. identify, and testing usually has to be open book. • Reasonably low cost method to train over time. • Lack of social interaction can inhibit • Does not disrupt the actual work learning in some fields. environment. Simulations Advantages Advantages Disadvantages • Low risk method of training individuals • Can become ‘a video game’ and not be on how to react to a complex situation. taken seriously. • Realism allows convincing emulation of • Systems may be very expensive to create actual physical situations. and/or maintain. 1 2 • Allows students to try out experimental • Complex computer -based simulations solutions to a problem; if the solution may require a very powerful and fails, the simulation can be reset. expensive processor in order to run the application. • Results of students’ actions can be analyzed post hoc to determine whether • Some processes cannot be simulated are not different actions may have been successfully due to a lack of knowledge more successful. of the details of the process. • Does not disrupt the actual work environment. Career Development / T alent Management Firms make career paths and career counseling available so employees: • Can achieve personal goals over the course of their caree. • Are more motivated, which can lead to improved productivity and job satisfaction, and lower absenteeism andt urnover. Organizational Development The process of improving an organization’s effectiveness and member’s well-being through the application of behavioral science concepts • Focuses on both macro- and micro-levels • HRD plays the role of hange agent The Boundaryless Career BEFORE:Careers traditionally took place within orderly, “paternalistic” employment arrangements within the same company for the entire career NOW:individuals have less boundaries with their careers crossing between different organizations, home and work. Performance Management and Appraisal Dr. Deanna Kolar Spring 2016 Performance Management vs. Performance Appraisal • Performance management is the process of identifying, measuring, managing, and developing the performance of human resources. • Performance appraisal is the ongoing process of evaluating employee performance. 2 Purposes of Performance Appraisal Systems Employment Decisions Diagnosis of Employee Feedback Organizational Problems Purposes of Performance Appraisal Systems Criteria in test Objectives for validation Training Program 3 The Performance Appraisal Process Accurate Performance Measures u Valid and reli-lonsistency of judgment u Acceptable-must have support of those who will use them u Feasibleand practical u Specific u Sensitive – i.e. can distinguish between ineffective and effective workers u Based on the mission and objectives Why Conduct Performance Appraisals? u Communicate employee’s performance strengths and improvement needs: managers and employees should have a formal -way conversation that allows employees to respond. u Make employment-related decisions: managers can use objective criteria to decide employee raises, promotions, demotions, training, development, termination. u Motivate—Develop: managers and employees can discuss tools and opportunities that can help employees improve their performance (and thereby improve organizational performance). Ranking Methods u Manager ranks a group of employees by making comparisons from best to worst. uTypically used for evaluative decision making and development. Forced Ranking • Relative comparison: An appraisal that compares employees against each other, forcing some to be rated above others, such as, "How did Joe do compared to Sally and Bob?“ • Absolute comparison:A conventional performance appraisal, such as, "How well did Joe do against the responsibilities and goals set at the beginning of the year ?“ • Forced distribution:An appraisal that does not compare people against each other but gives employees ratings such as "excellent," "good," or "needs improvement." A set number or percentage of workers must fall into each category. Rank and Y ank Forms of Appraisal Graphic Rating Scales Manager uses an appraisal checklist to rate employee performance on a continuum, often expressed as a numerical scale. Critical Incidents Method Manager records examples of the employee’s effective and ineffective behavior during the time period between evaluations, which is in the behavioral category. • The disadvantage of this method is the tendency to record only negative incidents instead of positive ones. • This method can work well if the manager has the proper training to record incidents (perhaps by keeping a weekly diary) in a fair manner. Behaviorally Anchored Rating Scales (BARS) Combines elements from critical incident and graphic rating scale approaches. Manager uses a specific behaviorally-based continuum to rate employee performance. The continuum is often expressed as a numerical scale. Narrative Method u Manager
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