Chapter 9 Managing Human Resources and Diversity

HRM No longer called “Personnel”No longer called “Personnel” Strategic ImportanceStrategic Importance Legal ImportanceLegal Importance Goals of HRM Find the Right People (Attract an effective work force)Find the Right People (Attract an effective work force) Manage Talent (Develop an effective work force)Manage Talent (Develop an effective work force) Maintain an effective work forceMaintain an effective work force

Environmental Influences on HRM Environmental Influences on HRM Competitive StrategyCompetitive Strategy Mergers/Acquisitions/DownsizingMergers/Acquisitions/Downsizing GlobalizationGlobalization AutomationAutomation Population ChangesPopulation Changes Federal LegislationFederal Legislation

Human Resource Planning Set goals based on such factors as:Set goals based on such factors as: –Demand for products or services –Available labor market –Available financial resources

Internal Recruiting Candidates familiar with the organizationCandidates familiar with the organization Less CostlyLess Costly Generates commitment / moraleGenerates commitment / morale

External Recruiting Brings in new skills, ideas, etc.Brings in new skills, ideas, etc. Lack of established personal relationships may be desirableLack of established personal relationships may be desirable Approaches:Approaches: –Ads –State or Private employment agencies –College Placement Offices –Job fairs –Employee referrals

Realistic Job Preview (RJP) Both Positive and Negative information about job and organizationBoth Positive and Negative information about job and organization Reduces turnover.Reduces turnover.

Suggestions for Successful Interviewing (as a Candidate) Thoroughly pre-scout the employerThoroughly pre-scout the employer Make a good first impressionMake a good first impression Ask permission to take notesAsk permission to take notes Think before answering questionsThink before answering questions Ask pertinent questionsAsk pertinent questions Watch your non-verbal behaviorWatch your non-verbal behavior Send a follow-up letter within 24 hrs. (to interviewer and anyone else involved in hiring)Send a follow-up letter within 24 hrs. (to interviewer and anyone else involved in hiring)

Training and Development On-the-job training (OJT)On-the-job training (OJT) OrientationOrientation Classroom trainingClassroom training Programmed instructionProgrammed instruction Computer-based instructionComputer-based instruction

Performance Appraisals Provide: Performance Appraisals Provide: Consequences to EmployeesConsequences to Employees Information to EmployeesInformation to Employees Information to ManagementInformation to Management

Performance Appraisals are used for: Performance Appraisals are used for: Compensation85.6% Performance Feedback65.1 Training64.3 Promotion45.3 Personnel Planning43.1 Retention/Discharge30.3 Research17.2 (600 Organizations Surveyed)

Performance Appraisal Inaccuracies Performance Appraisal Inaccuracies StereotypingStereotyping Lack of InformationLack of Information Halo ErrorHalo Error Homogeneity (Leniency, CentralHomogeneity (Leniency, Central Tendency, or Strictness) Recency EffectsRecency Effects

Improving Performance Appraisal Techniques Improving Performance Appraisal Techniques Keep Better RecordsKeep Better Records Use RankingsUse Rankings Multiple Raters, e.g., “360-degree Feedback”Multiple Raters, e.g., “360-degree Feedback” (including self-evaluation, peer review, customer feedback, etc.) MBOMBO Behaviorally Anchored Rating Scales (BARS)Behaviorally Anchored Rating Scales (BARS)

BARS Outstanding 5 If customer has defective merchandise, will arrange for repairs 4 Shares complete information on return policies 3 Will remember to say “shop again with us” 2 Delay customer without explanation 1 Be rude and disrespectful Unsatisfactory

Compensation Decisions Wage LevelWage Level –Organization as a whole in comparison to similar ones Wage and Salary StructureWage and Salary Structure –Differences between job types Individual DifferencesIndividual Differences –Due to performance, experience, education, etc.

Compensation Decisions Wage Level –Available Resources –Philosophy, Culture –Market Rates –Legal (minimum wage, etc.)

Job Evaluation Wage and Salary Structure –Point System SkillSkill EffortEffort ResponsibilityResponsibility Job ConditionsJob Conditions (Determines typical or average pay for a job, not a specific individual)

Benefits 1/3 to 2/3 of labor costs (Every $1.00 you pay your employee is costing you at least $1. 50)1/3 to 2/3 of labor costs (Every $1.00 you pay your employee is costing you at least $1. 50) Cafeteria-Style Benefit Packages: recent trend (All employees do not need/want the same exact benefits)Cafeteria-Style Benefit Packages: recent trend (All employees do not need/want the same exact benefits)

Terminations Use exit interviews Treatment of departing employees affects remaining workers.

Benefits of Promoting Diversity Develop potential of individuals and the organization and producing enhanced creativity and adaptabilityDevelop potential of individuals and the organization and producing enhanced creativity and adaptability Able to recruit the best employees (by having a larger pool)Able to recruit the best employees (by having a larger pool) Successful interaction in marketplace (i.e., relate to customers)Successful interaction in marketplace (i.e., relate to customers)

Costs of Ignoring Diversity Reduced productivity and creativityReduced productivity and creativity Corporate image tarnishedCorporate image tarnished Financial: lose resources invested in recruiting and training when a dissatisfied employee leavesFinancial: lose resources invested in recruiting and training when a dissatisfied employee leaves

Ethnocentrism vs. Ethnorelativism Ethnocentrism = belief that one’s own group or subculture is superiorEthnocentrism = belief that one’s own group or subculture is superior Ethnocentric viewpoints produce a Monoculture which assumes that there’s only one way to think and to do things.Ethnocentric viewpoints produce a Monoculture which assumes that there’s only one way to think and to do things. Ethnorelativism = Belief that groups and subcultures are inherently equal. Ethnorelativism leads to Pluralism which accommodates several subcultures

The Changing Workplace Increasing: Older Workers Older Workers Women Women Non-Whites Non-Whites (White males now make up less than 40% of the workforce.) (White males now make up less than 40% of the workforce.) 2005: 15% ages 55+ (20% by 2015) (12% in 1990) 47% (47% in 2010) (45% in 1990) 27% (34% in 2008) (22% in 1990)

Women in Fortune 500 Companies – 1999 vs vs vs Female CEOs: 3 vs. 6 vs. 8 (13 in 2010)Female CEOs: 3 vs. 6 vs. 8 (13 in 2010) Female Senior Officers: 12.5% vs. 15.7% vs. 16.4% (25.9 in 2010)Female Senior Officers: 12.5% vs. 15.7% vs. 16.4% (25.9 in 2010) Companies with more female officers averaged higher return on equity and total return to shareholders than did those with fewer female officers.Companies with more female officers averaged higher return on equity and total return to shareholders than did those with fewer female officers (Female-owned businesses employ more people than all Fortune 500 companies combined)

Age Distribution of U.S. Labor Force, 2002 and 2012

Age Mixed Results on Job PerformanceMixed Results on Job Performance Citizenship Behaviors - Improve with ageCitizenship Behaviors - Improve with age Job Satisfaction - Increases with ageJob Satisfaction - Increases with age

Projected Racial/Ethnic Makeup of the U.S. Workforce 2012

Immigrants By 2006, immigrants will account for half of all new U.S. workers.By 2006, immigrants will account for half of all new U.S. workers. They are 50% more likely than Americans to have a graduate degree.They are 50% more likely than Americans to have a graduate degree. Almost 25% of all U.S. residents holding PhDs in science and engineering are foreign-born.Almost 25% of all U.S. residents holding PhDs in science and engineering are foreign-born.

Equal employment opportunity (EEO) An EEO employer does not discriminate on the basis of race, religion, national origin, gender, age. handicapAn EEO employer does not discriminate on the basis of race, religion, national origin, gender, age. handicap Government oversight by the Equal Emp. Opp. Commission (EEOC).Government oversight by the Equal Emp. Opp. Commission (EEOC).

Affirmative Action Goes further than EEO to attempt to remedy past injusticesGoes further than EEO to attempt to remedy past injustices Greatest efforts required of firms doing business with the government and/or having been convicted of past discriminationGreatest efforts required of firms doing business with the government and/or having been convicted of past discrimination May or may not involve quotasMay or may not involve quotas

The Glass Ceiling Minorities and women in organizations often find an Invisible barrier preventing rise to top managementMinorities and women in organizations often find an Invisible barrier preventing rise to top management Because of a monocultureBecause of a monoculture People at the top tend to promote others like themselvesPeople at the top tend to promote others like themselves

Sexual Harassment Definition now goes beyond sex crimes, coercion, offensiveness, etc., to include anything creating feelings of harassment

Management Approaches to Addressing Harassment Increase Sensitivity and Take Disciplinary Actions Company diversity programsCompany diversity programs Complaint and grievance proceduresComplaint and grievance procedures Written policy statementsWritten policy statements WorkshopsWorkshops LecturesLectures Role-playing exercisesRole-playing exercises