Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 1 Chapter 11 Managing Human Resource Systems

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 2 What Would You Do? RadioShack is falling behind in the competition against larger retailers, and recent human-resources practices have earned it negative publicity. RadioShack, Fort Worth, Texas. How can you promote accountability in RadioShack while raising employee morale? How can you improve RadioShack’s reputation?

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 3 The Human Resource Management Process Recruiting Selection Attracting Qualified Employees Determining Human Resource Needs Human Resource Planning Compensation Employee Separation Keeping Qualified Employees Developing Qualified Employees Training Performance Appraisal Adapted From Exhibit 11.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 4 Determining Human Resource Needs After reading these sections, you should be able to: 1.describe the basic steps involved in human resource planning. 2.explain how different employment laws affect human resource practice.

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 5 Human Resource Planning Supply and Demand of Human Resources Human Resource Information Systems Human Resource Information Systems 1 1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 6 Forecasting Demand and Supply Internal forecasts External forecasts Internal forecasts External forecasts Direct managerial input Best guess Statistical / historical ratios Direct managerial input Best guess Statistical / historical ratios Work Force Forecasting Forecasting Methods 1.1 Projections about factors within the organization that affect the supply and demand for human resources Projections about factors outside the organization that affect the supply and demand for human resources

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 7 Forecasting Demand and Supply Internal Factors WorkForceForecastWorkForceForecast External Factors 1.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 8 Internal Forecast Factors New positions New equipment and technology Eliminated positions Terminations Retirements Resignations Turnover  Transfers  Deaths  Promotions  Organization’s mission  Productivity of current employees  Skills/education of current employees 1.1 Adapted from Exhibit 11.2

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 9 External Forecast Factors Demographics of labor supply Geographic population shifts Manufacturing-to service-to information-based economy shift Economic conditions  Unemployment rate  Labor unions  Availability of applicants  Technological advances  Competitors  Growth of businesses Adapted from Exhibit

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 10 Forecast Methods 1.1 Direct Managerial Input Best Guess Statistical/ Historical Ratios Based on projections of cash flows, expenses, or financial measures Based on managers’ assessment of current head count, plus a guess on relevant internal/external factors Based on statistical methods, such as multiple regression, in combination with historical data

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 11 Human Resource Information Systems Computerized employee information systems  Uses transaction processing employee self-service decision support 1.2

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 12 Human Resource Information Systems HRIS Work History Performance Appraisal Personal Data Educational Data Company Employment History Promotion Data Adapted from Exhibit

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 13 Employment Legislation Federal Employment Laws Adverse Impact and Employment Discrimination Sexual Harassment Laws 2 2

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 14 Federal Employment Laws Equal Pay Act of 1963 Civil Rights Act of 1964 Age Discrimination in Employment Act of 1967 Pregnancy Discrimination Act of 1978 prohibits unequal pay for males and females doing similar work prohibits discrimination on basis of race, color, religion, gender, origin prohibits discrimination on basis of race, color, religion, gender, origin prohibits discrimination against persons age 40 and over prohibits discrimination in employment against pregnant women prohibits discrimination in employment against pregnant women 2.1 Adapted from Exhibit 11.4

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 15 Federal Employment Laws (cont.) 2.1 Americans with Disabilities Act of 1990 Civil Rights Act of 1991 Family & Medical Leave Act of 1993 Family & Medical Leave Act of 1993 prohibits discrimination on the basis of physical or mental disabilities prohibits discrimination on the basis of physical or mental disabilities strengthened the Civil Rights Act of 1964 permits workers to take up to 12 weeks of unpaid leave for pregnancy, etc. Adapted from Exhibit 11.4 Uniformed Services Employment & Reemployment Rights Act prohibits discrimination against those serving in the Armed Forces Adapted from Exhibit 11.4

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 16 Adverse Impact and Employment Discrimination Four-FifthsRuleFour-FifthsRule Adverse Impact Disparate Treatment Intentional discrimination that results in equally qualified people being treated differently Unintentional discrimination that works to the disadvantage of member of protected groups Comparison of selection rates of a protected to a nonprotected group, to determine if adverse impact has occurred 2.2 The EEOC has investigatory, enforcement and informational responsibilities over these areas of discrimination

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 17 Sexual Harassment Hostile Work Environment Hostile Work Environment Quid Pro Quo unwelcome and demeaning sexually related behavior creates an intimidating and offensive work environment unwelcome and demeaning sexually related behavior creates an intimidating and offensive work environment employee outcomes depend on whether an individual submits to sexual harassment employee outcomes depend on whether an individual submits to sexual harassment 2.3

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 18 Common Managerial Mistakes in Sexual Harassment Laws That the victim and harasser must be of the opposite sex That harassment can only occur between coworkers or supervisors and subordinates That only victims can file complaints Assuming: 2.3

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 19 Company Responsibilities Respond immediately to make sure sexual harassment laws are followed Write a clear, understandable sexual harassment policy Establish clear reporting procedures Be in compliance with federal, state, and local sexual harassment laws 2.3

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 20 Finding Qualified Workers After reading these sections, you should be able to: 3.explain how companies use recruiting to find qualified job applicants. 4.describe the selection techniques and procedures that companies use when deciding which applicants should receive job offers.

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 21 Recruiting Job Analysis and Recruiting Job Analysis and Recruiting Internal Recruiting External Recruiting 3 3

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 22 Job Analysis and Recruiting  work activities  tools and equipment used to do the job  context in which the job is performed  personnel requirements for performing the job  work activities  tools and equipment used to do the job  context in which the job is performed  personnel requirements for performing the job Information Collected by a Job Analysis 3.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 23 Job Analysis and Recruiting Adapted From Exhibit Job Description Job Specification HR Subsystems RecruitingRecruitingSelectionSelectionTrainingTrainingPerformanceAppraisalPerformanceAppraisalSeparationSeparation Job Analysis

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 24 Job Analysis and Recruiting Job Description Job Description written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job written description of the basic tasks, duties, and responsibilities required of an employee holding a particular job Job Specification Job Specification a written summary of the qualifications needed to successfully perform a job 3.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 25 Internal Recruiting A pool of applicants who already work for the company “Promotion from within” Improves employee morale and motivation Reduces employer time and cost Job posting is the procedure for internal advertising Career path is a planned sequence of jobs 3.2

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 26 Methods for External Recruiting Advertising Employee referrals Walk-ins Outside organizations Employment services Special events Internet job sites 3.3

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 27 Selection Selection Tests Interviews Application Forms and Résumés References and Background Checks 4 4

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 28 Topics Employers Should Avoid 1. Children 2. Age 3. Disabilities 4. Physical Characteristics 5. Name 6. Citizenship 7. Lawsuits 8. Arrest records 9. Smoking 10. AIDS/HIV Adapted from Exhibit

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 29 Doing the Right Thing Don’t Embellish Your Résumé  Embellishing your résumé is wrong.  The information is legally binding— and misrepresenting information is breaking the law.  If what you put on your résumé feels wrong, don’t do it.  Don’t embellish. Tell the truth on your résumé. Don’t Embellish Your Résumé  Embellishing your résumé is wrong.  The information is legally binding— and misrepresenting information is breaking the law.  If what you put on your résumé feels wrong, don’t do it.  Don’t embellish. Tell the truth on your résumé. 4.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 30 References and Background Checks References or background checks are not always provided by previous employers Making background checks more effective  dig deeper for more information  get permission in writing  document all checks  consider hiring private investigators 4.2

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 31 Selection Tests WorkSample BiographicalData Personality AssessmentCenters CognitiveAbility SpecificAbility SelectionTests 4.3

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 32 Doing the Right Thing Don’t Use Psychics, Lie Detectors, or Handwriting Analysis to Make HR Decisions  Companies may use these methods, but they don’t work  There is no scientific evidence that handwriting analysis works  Lie detectors are not accurate  Polygraphs are not allowed  Stay away from fads and use reliable procedures Don’t Use Psychics, Lie Detectors, or Handwriting Analysis to Make HR Decisions  Companies may use these methods, but they don’t work  There is no scientific evidence that handwriting analysis works  Lie detectors are not accurate  Polygraphs are not allowed  Stay away from fads and use reliable procedures 4.3

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 33 Interviews Unstructured Interviews  free-flow of questions Structured Interviews  interviewer uses standard set of prepared questions Semi-structured Interviews  some structure combined with interviewer judgement 4.4

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 34 Questions in Structured Interviews Situational Questions Behavioral Questions Background Questions Job-Knowledge Questions 4.4

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 35 Guidelines for Conducting Effective Structured Interviews Planning the Interview Identify and define the KSAO needed for job Develop key behavioral questions for each KSAO For each KSAO, develop a list of things to look for in applicant’s responses KSAO: Knowledge, skills, abilities, and other characteristics 4.4 Adapted from Exhibit 11.10

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 36 Guidelines for Conducting Effective Structured Interviews Conducting the Interview Create a relaxed interview atmosphere Review the applicant’s information Allocate adequate time Put the applicant at ease Tell the applicant what to expect Obtain job-related information (refer to KSAO) Describe the job and organization 4.4 Adapted from Exhibit 11.10

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 37 Guidelines for Conducting Effective Structured Interviews After the Interview Review your notes immediately Evaluate the applicant on each KSAO Determine each applicant’s probability of success and make a hiring decision 4.4 Adapted from Exhibit 11.10

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 38 What Really Works Cognitive Ability Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success76% Work Sample Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success77% Using Selection Tests to Hire Good Workers

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 39 What Really Works Assessment Centers 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success69% Structured Interviews 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success76% Using Selection Tests to Hire Good Workers

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 40 What Really Works Cognitive Ability + Work Sample Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success82% Cognitive Ability + Integrity Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success83% Cognitive Ability + Structured Interviews 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success82% Using Selection Tests to Hire Good Workers

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 41 Biz Flix: Bowfinger Take Two Video Click 1.Does Bobbie Bowfinger have a set of valid selection criteria for filling the role of a Kit Ramsey lookalike? Does Bowfinger apply the criteria uniformly to each applicant? 2.Is there a good person-job fit of Jiff Ramsey in the screen role of Kit Ramsey? 3.Do you predict that Jiff Ramsey will be successful as a Kit Ramsey substitute?

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 42 Developing Qualified Workers After reading these sections, you should be able to: 5.describe how to determine training needs and select the appropriate training methods. 6.discuss how to use performance appraisal to give meaningful performance feedback.

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 43 Training Training Needs Training Methods Training Evaluation 5 5

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 44 Determining Training Needs Conducting Needs Assessments Identify Performance Deficiencies Test Employee Skills and Knowledge Survey Employers and Managers Listen to Customer Complaints 5.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 45 Needs Assessment Step 1 Step 2 Step 3 Job Analysis Test Employee Skills Compare Employee Skills to Required Skills Adapted From Exhibit Do I actually need to do training?

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 46 Work Keys Needs Assessment Exhibit

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 47 Training Methods Adapted From Exhibit Impart Information and Knowledge Develop Analytical and Problem-Solving Skills Practice, Learn, or Change Job Behaviors All of the above films and videos lecture planned readings films and videos lecture planned readings case studies coaching and mentoring group discussions case studies coaching and mentoring group discussions on-the-job training role-playing simulations and games vestibule training on-the-job training role-playing simulations and games vestibule training Computer-based learning 5.2

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 48 Evaluating Training Reactions Learning Behavior Results how satisfied trainees were with the program how much employees improved their knowledge or skills how much employees actually changed their on-the-job behavior how much training improved job performance 5.3

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 49 Computer-Based Training

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 50 Performance Appraisal Measuring Job Performance Sharing Performance Feedback 6 6

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 51 Measuring Job Performance: Common Rating Errors Central tendency  all workers are rated as being “average” Halo error  all workers are rated as performing at the same level in all parts of their jobs Leniency error  all workers are rated as performing at a high level 6.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 52 Measuring Job Performance Improving Job Performance Measurements Improve Performance Appraisal Measures Train Performance Raters 6.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 53 Improving Performance Appraisal Measures Objective performance measures  quantifiable outcomes (output, scrap, waste, sales, customer complaints, or rejection rates) Subjective performance measures  Someone’s judgment regarding the worker’s performance. 6.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 54 Subjective Performance Appraisal Scales 6.1 Exhibit 11.13

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 55 Rater Training Teach raters how to avoid errors Improve rating accuracy Video training and role playing often used 6.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 56 Sharing Performance Feedback Managers often fail to effectively give employees performance feedback 360-degree feedback  boss, subordinates, peers, and the employee  best for employee development 6.2

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 57 Performance Feedback 1.Separate developmental feedback from administrative feedback 2.Base performance appraisal feedback sessions on self-appraisals 3.Have people discuss the feedback they received with executive coaches or the people who provided it 1.Separate developmental feedback from administrative feedback 2.Base performance appraisal feedback sessions on self-appraisals 3.Have people discuss the feedback they received with executive coaches or the people who provided it Recommendations for Sharing Performance Feedback 6.2

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 58 Performance Feedback 1.Overall progress 2.Problems encountered in meeting job requirements 3.Opportunities to improve performance 4.Long-range plans and opportunities 5.General discussion of possible plans and goals for the coming year 1.Overall progress 2.Problems encountered in meeting job requirements 3.Opportunities to improve performance 4.Long-range plans and opportunities 5.General discussion of possible plans and goals for the coming year What to Discuss in Performance Appraisal Feedback Sessions 6.2 Adapted From Exhibit 11.14

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 59 Keeping Qualified Workers After reading these sections, you should be able to: 7.describe basic compensation strategies and explain how they affect human resource practice. 8.discuss the four kinds of employee separations: termination, downsizing, retirements, and turnover.

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 60 Compensation Decisions Compensation Decisions Employment Benefits 7 7

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 61 Compensation Decisions Job evaluation Piecework Commission Profit sharing Employee stock ownership plans Stock options Hierarchical CompressedPayLevelPayVariabilityPayStructure Cafeteria plans Flexible plans Payroll deductions Adapted from Exhibit 11.15EmploymentBenefits 7.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 62 Pay-Level Decisions Job evaluation is used to determine the worth of jobs  pay the “going rate” Should workers be paid at, below, or above current market wage?  attracts a larger, more qualified pool of applicants  increases the rate of job acceptance  decreases the time it takes to fill positions  increases the time that employees stay 7.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 63 Pay-Variability Decisions Piecework Commission Profit sharing Employee stock ownership plans (ESOPs) Stock options 7.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 64 Pay-Structure Decisions Hierarchical pay structures  big differences from one pay level to another  work best for independent work Compressed pay structures  fewer pay levels with smaller differences in pay between pay levels  work best for interdependent work 7.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 65 Employment Benefits Compensation other than direct wages Employee benefits are legally mandated:  Social Security  worker’s compensation  unemployment insurance Cafeteria benefit plans  employees can select from optional benefits Payroll deductions 7.2

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 66 Employee Separations Terminations Downsizing Turnover Retirements 8 8

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 67 Terminating Employees Often mismanaged Minimize problems in firing employees  firing should not be the first option  firing should be for a good reason “employment at will” wrongful discharge  firing should be done in private 8.1

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 68 Downsizing 1.Provide clear reasons for the layoffs. 2.Get information to avoid laying off employees with critical skills. 3.Training managers in how to tell employees. 4.Give employees the bad news early in the day. 5.Provide outplacement services and counseling. 6.Communicate with survivors. 8.2 Adapted From Exhibit 11.16

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 69 Retirement Offer financial benefits to encourage employees to retire Are attractive to many employees Are difficult to predict which or how many employees will use the program May cause the company to lose valuable employees Early Retirement Incentive Programs… 8.3

Chapter 11 Copyright ©2009 by Cengage Learning Inc. All rights reserved 70 Employee Turnover Loss of employees who voluntarily choose to leave the company Functional turnover (encouraged)  the loss of poor-performing employees Dysfunctional turnover (discouraged)  the loss of high performing employees 8.4