Managing Human Resources and Diversity Chapter 9

The Strategic Role of HRM Is to Drive Organizational Performance The right people to become globally competitive The right people for improving quality, innovation, and customer service The right people to retain during mergers and acquisitions The right people to apply new information technology for e-business

Strategic Human Resource Management

Building Human Capital to Drive Performance Strategic decisions are related to human decisions More companies rely on information, creativity and knowledge Human Capital is the economic value of the combined knowledge, experience, skills and capabilities of employees

The Role and Value of Human Capital Investments

The Impact of Federal Legislation on HRM Many HR related laws exist to ensure equal opportunity, and stop discrimination Discrimination – the hiring or promotion of applicants based on criteria that are not job related Affirmative action – requires employers to take positive steps to guarantee equal employment opportunities for people of protected groups

Major Federal Laws Related to Human Resource Management

The Changing Nature of Careers The Changing Social Contract: We can’t promise you how long we’ll be in business We can’t promise you that we won’t be acquired We can’t promise that there’ll be room for promotion We can’t promise that your job will exist when you reach retirement age We can’t promise that the money will be available for your pension We can’t expect your undying loyalty and we aren’t even sure we want it

Comparing the Social Contract SOURCES: Based on Louisa Wah, “The New Workplace Paradox,” Management Review (January 1998): 7; and Douglas T. Hall and Jonathan E. Moss, “The New Protean Career Contract: Helping Organizations and Employees Adapt,” Organizational Dynamics (Winter 1998): 22-37.

Innovations in HRM Becoming an Employer of Choice Organizations that are highly attractive to potential employees because of HR practices Using Temporary and Part-Time Employees Contingent workers are becoming a larger part of the workforce Promoting Work/Life Balance Telecommuting means using computer and telecommunications to work outside office

Attracting an Effective Workforce

Human Resource Planning What new technologies are emerging? What is the volume of the business likely to be in the next 5 to 10 years? What is the turnover rate? What types of engineers will we need? How many administrative personnel will we need? Can we use temporary, part-time, or virtual workers?

Innovations in Recruiting include Today recruiting is often called talent acquisition Organizations use internal recruiting, promote-from-within and external recruiting; E-cruiting Assessing Jobs: Job Analysis Job Descriptions Job Specifications Realistic Job Previews – provide pertinent information Legal Considerations – recruiting practices must be legal Innovations in Recruiting include Employee Referrals/Networking and Social Media

Sara Lee’s Required Skills for Finance Executives

PAIRE’s Recruitment and Hiring Policy

Selecting Application form is used to collect information about the applicant The interview is used as a selection technique Employment tests assess abilities Assessment centers present managerial situations for potential managers Online checks employers are going online to learn more about applicants Blogs and social networking

Types of Interviews Structured interviews Biographical interviews Panel interviews Computer-based interviews

Employment Applications and Interviews: What Can You Ask?

Interview Brain Teasers

Managing Talent Training and Development Performance Appraisal On-the-job Training Corporate Universities Promotion from Within Mentoring and Coaching Performance Appraisal Evaluating performance and recording assessment and providing feedback

Performance Appraisal HRM professionals concentrate on: Accurate assessment Training managers to use appraisal as feedback 360-degree Feedback – uses multiple raters, including self-rating to appraise employees and development

Performance Evaluation Errors Stereotyping – placing an employee into a class or category based on a few characteristics Halo effect, manager gives an employee the same rating on all dimensions because of a good rating Behaviorally anchored Rating Scales (BARS) – rating technique that relates an employee’s performance to specific job-related incidents

Example of a Behaviorally Anchored Rating Scale SOURCES: Based on J.P. Campbell, M.D. Dunnette, R.D. Arvey, and L.V. Hellervik, “The Development and Evaluation of Behaviorally Based Rating Scales,” Journal of Applied Psychology 57 (1973): 15-22; and Francine Alexander, “Performance Appraisals,” Small Business Reports (March 1989): 20-29.

Maintaining an Effective Workforce Compensation: All monetary payments All goods or commodities to reward employees Wage and Salary Systems Job-based pay Skill-based pay Competency-based pay Compensation Equity - fairness and equity Pay for Performance – incentive pay Benefits – more than money

Rightsizing the Organization Rightsizing – reducing the company’s workforce Also called downsizing Rightsizing implies the goal is to strengthen the company

Termination Organizations will lose employees Retirement Voluntarily leave Downsized during mergers Cutbacks Poor performance An exit interview is conducted to determine why an employee is leaving

Diversity in the United States Three-generation workforce Aging workers Growth in Hispanic and Asian Workers Women outnumbering men Growth in foreign-born population

Corporate Diversity Milestones

Diversity on a Global Scale Social and cultural differences can create difficulties Europe has very complex and social cultural systems National cultures are intangible, pervasive, and difficult to comprehend It is imperative to understand local cultures

Managing Diversity Managing diversity is a management skill Diversity is the ways in which people are different, it includes Race Gender Age Lifestyle Disability

Traditional vs. Inclusive Models of Diversity

Dividends of Workplace Diversity Better use of employee talent Increased understanding of the marketplace Enhanced breadth of understanding in leadership positions Reduced costs associated with high turnover, absenteeism, and lawsuits

Factors Shaping Personal Bias Prejudice – different is deficient Discrimination – acting on prejudicial attitudes Stereotypes – rigid, exaggerated & irrational beliefs Stereotypes are based on folklore, media portrayals, and other unreliable sources of information Stereotypes contain negative connotations Stereotypes assume that all members of a group have the same characteristics

Difference between Stereotyping and Valuing Cultural Differences

Ethnocentrism Ethnocentrism – your group or subculture is inherently superior to other groups and cultures Valuing diversity means ensuring that all people are given equal opportunities in the workplace Pluralism means that an organization accommodates several subcultures Many organizations are shifting from a monoculture perspective

Factors Affecting Women’s Careers Women have been limited by an invisible barrier – the glass ceiling Minority women hold small percentage of management positions Homosexuality is a related sensitive issue There has been a trend of women to Opt-Out of the fast-track ….but, women have natural qualities appropriate for competitive environment

The Wage Gap

Cultural Competence A successful diversity plan leads to a workforce that demonstrates cultural competence Helping employees understand, communicate with, and successfully interact with diverse coworkers

Five Steps to Develop Diversity SOURCE: Based on Ann M. Morrison, The New Leaders: Guidelines on Leadership Diversity in America (San Francisco: Jossey-Bass Publishers, 1992), p. 160.

Diversity Initiatives and Programs Changing Structures and Policies Expanding Recruitment Efforts Establishing Mentor Relationships Accommodating Special Needs Providing Diversity Skills Training Increasing Awareness of Sexual Harassment

Increasing Awareness of Sexual Harassment Categories of sexual harassment: Generalized remarks/actions Inappropriate/offensive Solicitation with promise of reward Coercion with threat of punishment Sexual crimes and misdemeanors

New Diversity Initiatives Multicultural Teams Diverse teams enhance innovation and produce better alternatives Employee Network Groups Powerful way to reduce social isolation for women and minorities Should be informal and created by employees