1. Managing Human Resources and Diversity
Chapter 9

2. 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

3. Strategic Human Resource Management

4. 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

5. The Role and Value of Human Capital Investments

6. 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

7. Major Federal Laws Related to Human Resource Management

8. 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

9. 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):

10. 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

11. Attracting an Effective Workforce

12. 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?

13. 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

14. Sara Lee’s Required Skills for Finance Executives

15. PAIRE’s Recruitment and Hiring Policy

16. 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

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

18. Employment Applications and Interviews: What Can You Ask?

19. Interview Brain Teasers

20. 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

21. 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

22. 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

23. 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):

24. 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

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

26. 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

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

28. Corporate Diversity Milestones

29. 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

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

31. Traditional vs. Inclusive Models of Diversity

32. 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

33. 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

34. Difference between Stereotyping and Valuing Cultural Differences

35. 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

36. 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

37. The Wage Gap

38. 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

39. 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.

40. 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

41. 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

42. 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