Chapter 11
1
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Chapter 11Managing Human Resource
Systems
Designed & Prepared byB-books, Ltd.
MGMT3
Chuck Williams
2Copyright ©2011 by Cengage Learning. All rights reserved
The Human Resource Management Process
Recruiting
Selection
Attracting QualifiedEmployees
Compensation
Employee Separation
Keeping QualifiedEmployees
Developing QualifiedEmployees
Training
Performance Appraisal
3Copyright ©2011 by Cengage Learning. All rights reserved
Employment Laws
After reading this section, you should be able to:
1. explain how different employment laws affect human resource practice.
Chapter 11
2
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Human Resource Planning
Supply and Demandof
Human Resources
Supply and Demandof
Human Resources
Human ResourceInformation
Systems
Human ResourceInformation
Systems
Beyond the Book
5Copyright ©2011 by Cengage Learning. All rights reserved
Forecasting Demand and Supply
•Internal forecasts
•External forecasts
•Internal forecasts
•External forecasts
•Direct managerial input
•Best guess
•Statistical / historicalratios
•Direct managerial input
•Best guess
•Statistical / historicalratios
Work ForceForecasting
ForecastingMethods
Beyond the Book
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Forecasting Demand and Supply
InternalFactorsInternalFactors
WorkForce
Forecast
WorkWorkForceForce
ForecastForecast
ExternalFactors
ExternalFactors
Beyond the Book
Chapter 11
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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
Beyond the Book
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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
Beyond the Book
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Forecast Methods
DirectManagerial
Input
DirectManagerial
Input
BestGuessBest
Guess
Statistical/Historical Ratios
Statistical/Historical Ratios
Based on projections of cash flows,expenses, or financial measures
Based on projections of cash flows,expenses, or financial measures
Based on managers’ assessment of current head count plus a guess onrelevant internal/external factors
Based on managers’ assessment of current head count plus a guess onrelevant internal/external factors
Based on statistical methods, such asmultiple regression, in combinationwith historical data
Based on statistical methods, such asmultiple regression, in combinationwith historical data
Beyond the Book
Chapter 11
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Human Resource Information Systems
• Computerized employee information systems use:
• transaction processing
• employee self-service
• decision support
Beyond the Book
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Human Resource
Information Systems
HRISHRISWork HistoryWork History
PerformanceAppraisal
PerformanceAppraisal
Personal DataPersonal Data
EducationalData
EducationalData
CompanyEmployment
History
CompanyEmployment
History
Promotion DataPromotion Data
Beyond the Book
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Employment Legislation
FederalEmployment
Laws
Adverse Impactand
EmploymentDiscrimination
SexualHarassment
Laws
11
Chapter 11
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Federal Employment Laws
Equal Pay Act of 1963Equal Pay Act of 1963
Civil Rights Act of 1964Civil Rights Act of 1964
Age Discrimination inEmployment Act of 1967
Age Discrimination inEmployment Act of 1967
Pregnancy DiscriminationAct of 1978
Pregnancy DiscriminationAct of 1978
prohibits unequal pay for males and females doing similar work
prohibits unequal pay for males and females doing similar work
prohibits discrimination on basis ofrace, color, religion, gender, origin
prohibits discrimination on basis ofrace, color, religion, gender, origin
prohibits discrimination against persons age 40 and over
prohibits discrimination against persons age 40 and over
prohibits discrimination in employmentagainst pregnant women
prohibits discrimination in employmentagainst pregnant women
1.11.1
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Federal Employment Laws (cont.)
Americans with Disabilities Act of 1990
Americans with Disabilities Act of 1990
Civil Rights Act of 1991Civil Rights Act of 1991
Family & Medical LeaveAct of 1993
Family & Medical LeaveAct of 1993
prohibits discrimination on the basis ofphysical or mental disabilities
prohibits discrimination on the basis ofphysical or mental disabilities
strengthened the Civil Rights Act of 1964strengthened the Civil Rights Act of 1964
permits workers to take up to 12 weeksof unpaid leave for pregnancy, etc.
permits workers to take up to 12 weeksof unpaid leave for pregnancy, etc.
Adapted from Exhibit 11.2Uniformed Services Employment & Reemployment Rights Act
Uniformed Services Employment & Reemployment Rights Act
prohibits discrimination against those serving in the Armed Forces
prohibits discrimination against those serving in the Armed Forces
1.11.1
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Adverse Impact and Employment Discrimination
Four-FifthsRule
FourFour --FifthsFifthsRuleRule
AdverseImpact
AdverseAdverseImpactImpact
DisparateTreatmentDisparateDisparateTreatmentTreatment
Intentional discrimination that results in equally qualified people being treated differently
Unintentional discrimination that works to the disadvantage of members of protected groups
Comparison of selection rates of a protected to a nonprotected group to determine if adverse impact has occurred1.21.2
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Sexual Harassment
HostileWork
Environment
HostileWork
Environment
QuidPro Quo
QuidPro Quo
Unwelcome and demeaning sexuallyrelated behavior creates an intimidating and offensive work environment
Unwelcome and demeaning sexuallyrelated behavior creates an intimidating and offensive work environment
Employee outcomes depend on whether an individual submits tosexual harassment
Employee outcomes depend on whether an individual submits tosexual harassment
1.31.3
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Sexual Harassment
Abercrombie & Fitch paid $50 million to settle a lawsuit that alleged systematic discrimination against Latino, African American, Asian American and female applicants and employees in its employment practices. Shown here is EEOC commissioner Stuart Ishimaru leaving the podium after addressing reporters at a news conference announcing the settlement.
© AP Photo/Ric Francis
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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
1.31.3
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Finding Qualified Workers
After reading these sections, you should be able to:
2. explain how companies use recruiting to find qualified job applicants.
3. describe the selection techniques and procedures that companies use when deciding which applicants should receive job offers.
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Recruiting
Job Analysisand
Recruiting
Job Analysisand
Recruiting
InternalRecruitingInternal
RecruitingExternal
RecruitingExternal
Recruiting
22
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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
2.12.1
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Job Analysis and Recruiting
Job DescriptionJob DescriptionJob Description Job Specification
Job Job SpecificationSpecification
HR SubsystemsHR SubsystemsHR Subsystems
RecruitingRecruitingRecruiting SelectionSelectionSelection TrainingTrainingTraining PerformanceAppraisal
PerformancePerformanceAppraisalAppraisal SeparationSeparationSeparation
Job AnalysisJob AnalysisJob Analysis
2.12.1
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Job Analysis and Recruiting
JobDescription
JobDescription
written description of the basic tasks, duties, and responsibilities requiredof an employee holding a particular job
written description of the basic tasks, duties, and responsibilities requiredof an employee holding a particular job
JobSpecification
JobSpecification
a written summary of the qualificationsneeded to successfully perform a job
a written summary of the qualificationsneeded to successfully perform a job
2.12.1
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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 jobs2.22.2
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Methods for External Recruiting
• Advertising
• Employee referrals
• Walk-ins
• Outside organizations
• Employment services
• Special events
• Internet job sites
2.32.3
© Jessica Rinaldi/Reuters/Landov
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Beyond the BookCompany Websites: The New Job BoardMany companies are focusing on their own websites, rather than traditional job boards, when searching for prospective employees. This can save the company the cost of advertising on other sites, and on average they are finding the applicants that come through the company web site better qualified. They are also focusing on social media sites like LinkedIn and Facebook. For job seekers, this means expanding their efforts to include every possible resource available.
Source: J. De Avila, “Beyond Job Boards: Targeting the Source”, The Wall Street Journal, 2 July 2009. D1.
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Selection
SelectionTests
SelectionTests InterviewsInterviews
Application Formsand Résumés
Application Formsand Résumés
References andBackground Checks
References andBackground Checks
33
Chapter 11
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Topics Employers Should Avoid
1. Children1. Children
2. Age2. Age
3. Disabilities3. Disabilities
4. Physical Characteristics 4. Physical Characteristics
5. Name5. Name
6. Citizenship6. Citizenship
7. Lawsuits7. Lawsuits
8. Arrest records 8. Arrest records
9. Smoking9. Smoking
10. AIDS/HIV10. AIDS/HIV3.13.1
©S
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com
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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
3.23.2
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Selection Tests
WorkWorkSampleSample
BiographicalBiographicalDataData
PersonalityPersonality
AssessmentAssessmentCentersCenters
CognitiveCognitiveAbilityAbility
SpecificSpecificAbilityAbility
SelectionSelectionTestsTests
3.33.3
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Interviews
• Unstructured Interviews– free-flow of questions
• Structured Interviews– interviewer uses standard set of prepared
questions
• Semi-structured Interviews– some structure combined with interviewer
judgement3.43.4
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Questions in Structured Interviews
Situational QuestionsSituational Questions
Behavioral QuestionsBehavioral Questions
Background QuestionsBackground Questions
Job-Knowledge QuestionsJob-Knowledge Questions
3.43.4
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Guidelines for Conducting Effective Structured Interviews
Planning the InterviewPlanning 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 3.43.4
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Guidelines for Conducting Effective Structured Interviews
Conducting the InterviewConducting 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 3.43.4
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Guidelines for Conducting Effective Structured Interviews
After the InterviewAfter the Interview
• Review your notes immediately
• Evaluate the applicant on each KSAO
• Determine each applicant’s probability of success and make a hiring decision
3.43.4
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Beyond the BookFinding the “Right People”Here are six key characteristics that help create a good fit
with your company.1. Hire people who fit the company’s core values.2. Look for people who don’t need constant supervision.3. Prospective hires should understand that have
“responsibilities”, not “jobs”.4. Look for people who fulfill their commitments.5. People who are passionate about the company and
their work will make the best fits.6. Look for people who credit factors other than
themselves for success and take personal responsibility for their mistakes.
Source: M. V. Copeland, “Tapping Tech’s beautiful Minds”, Fortune, 12 October 2009. 35-36.
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Developing Qualified Workers
After reading these sections, you should be able to:
4. describe how to determine training needs and select the appropriate training methods.
5. discuss how to use performance appraisal to give meaningful performance feedback.
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Training
Training Needs
Training Needs
TrainingMethodsTrainingMethods
TrainingEvaluationTraining
Evaluation
44
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Determining Training Needs
ConductingNeeds
Assessments
ConductingNeeds
Assessments
IdentifyPerformanceDeficiencies
IdentifyPerformanceDeficiencies
Test EmployeeSkills and
Knowledge
Test EmployeeSkills and
Knowledge
SurveyEmployers
and Managers
SurveyEmployers
and Managers
Listen toCustomer
Complaints
Listen toCustomer
Complaints
4.14.1
Chapter 11
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Work Keys Needs Assessment
Step 1Step 1
Step 2Step 2
Step 3Step 3
Job AnalysisJob Analysis
Test Employee SkillsTest Employee Skills
Compare Employee Skillsto Required SkillsCompare Employee Skillsto Required Skills
Beyond the Book
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Work Keys Needs Assessment
Beyond the Book
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Training Methods
Impart Informationand KnowledgeImpart Informationand Knowledge
Develop Analyticaland Problem-SolvingSkills
Develop Analyticaland Problem-SolvingSkills
Practice, Learn, orChange Job Behaviors
Practice, Learn, orChange Job Behaviors
All of the aboveAll 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• Computer-based learning
4.24.2
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Evaluating Training
ReactionsReactions
LearningLearning
BehaviorBehavior
ResultsResults
how satisfied trainees were with the program
how satisfied trainees were with the program
how much employees improvedtheir knowledge or skills
how much employees improvedtheir knowledge or skills
how much employees actually changedtheir on-the-job behavior
how much employees actually changedtheir on-the-job behavior
how much training improvedjob performance
how much training improvedjob performance
4.34.3
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Performance Appraisal
MeasuringJob
Performance
MeasuringJob
Performance
SharingPerformance
Feedback
SharingPerformance
Feedback
55
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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
5.15.1
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Measuring Job Performance
Improving Job Performance Measurements Improving Job Performance Measurements
Improve Performance Appraisal Measures
Improve Performance Appraisal Measures
TrainPerformance Raters
TrainPerformance Raters
5.15.1
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Improving Performance Appraisal Measures
• Objective performance measures– quantifiable outcomes (output, scrap, waste, sales,
customer complaints, or rejection rates)
• Subjective performance measures– trait rating scales
– behavioral observation scales (BOS)
5.15.1
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Subjective Performance Appraisal Scales
5.15.1
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Rater Training
• Teach raters how to avoid errors
• Improve rating accuracy
• Video training and role playing often used
5.15.1
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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
5.25.2
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Performance Feedback
1. Separate developmental feedback from administrative feedback
2. Base performance appraisal feedback sessionson self-appraisals
3. Have people discuss the feedback they received with executive coaches or the peoplewho provided it
1. Separate developmental feedback from administrative feedback
2. Base performance appraisal feedback sessionson self-appraisals
3. Have people discuss the feedback they received with executive coaches or the peoplewho provided it
Recommendations for Sharing Performance Feedback
5.25.2
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Performance Feedback
• Overall progress
• Problems encountered in meeting job requirements
• Opportunities to improve performance
• Long-range plans and opportunities
• General discussion of possible plans andgoals for the coming year
• Overall progress
• Problems encountered in meeting job requirements
• Opportunities to improve performance
• Long-range plans and opportunities
• General discussion of possible plans andgoals for the coming year
What to Discuss in Performance Appraisal Feedback Sessions
5.25.2
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Keeping Qualified Workers
After reading this section, you should be able to:
6. describe basic compensation strategies and discuss the four kinds of employee separations.
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Compensation
CompensationDecisions
CompensationDecisions
EmploymentBenefits
EmploymentBenefits
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Compensation Decisions
• Job evaluation
• Piecework
• Commission
• Profit sharing
• Employee stock ownership plans
• Stock options
• Hierarchical
• Compressed
PayPayLevelLevel
PayPayVariabilityVariability
PayPayStructureStructure
• Cafeteria plans
• Flexible plans
• Payroll deductions
EmploymentEmploymentBenefitsBenefits
6.16.1
Beyond the Book
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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?– Above-market wages attract 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 stay6.16.1
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Beyond the BookPay Raises in the Recession• Since the end of 2007, pay raises have been among the many cutbacks companies are making to get through the downturn.
• The U.S. Labor Department reported that average pay had increased 2.2% at the end of March 2009, down a full percentage point from a year earlier.
• Analysts, however, estimate that top performing employees received on average 4% raises, compared to 0.2% for lowest-ranking employees.
Source: M. Sanserino, “Pay Raises Are the Smallest In Decades, Surveys Show”, The Wall Street Journal, 21 July 2009. D1.
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Pay-Variability Decisions
• Piecework
• Commission
• Profit sharing
• Employee stock ownership plans (ESOPs)
• Stock options6.16.1
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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
6.16.1
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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
Beyond the Book
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Employee Separations
TerminationsTerminations DownsizingDownsizing
TurnoverTurnoverRetirementsRetirements
6.26.2
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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
6.26.2 ©W
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63Copyright ©2011 by Cengage Learning. All rights reserved
Downsizing
1. Provide clear reasons for the layoffs.
2. Get information to avoid laying off employees with critical skills.
3. Train managers how to tell employees.
4. Give employees the bad news early in the day.
5. Provide outplacement services and counseling.
6. Communicate with survivors.
6.36.3
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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…
6.46.4
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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
6.56.5