BA 101

I. MANAGERS TERRAIN RC: 1-6 MANAGERS Who? org members who tells others what to do and how to do it coordinates & oversees the work of other people so goals can be met

Why are they important? organizations need their skills/abilities in uncertain, complex, & chaotic times they get things done they matter bc the relationship bet. employees ang managers influence productivity

Structured Org way of classifying managers? First Line: manage work of nonmanagerial employees, typically in production; supervisors,

shift/district/department/office managers Middle: manage work of first line managers, regional manager, project leader, store/division

manager Top: makes org-wide decisions, establishes plans/goals of entire org, executive VP, President,

Managing director, chief operating officer, CEO What is an ORGANIZATION? Has a distinct purpose, expressed thru goals Is composed of people Has deliberate structure (may be open/flexible or traditional) where mems do their work

MANAGEMENT coordinating & overseeing the work of others so the activities are done efficiently & effectively EFFICIENCY/means: MAX output from MIN input; doing things right- not wasting resources EFFECTIVENESS/end: completing activities so goals are met FUNCTIONS (not always in order) by Henri Fayol

PLANNING: set goals, establish strategies, develop plans for activities ORGANIZING: determine what tasks, who will do them, decisions LEADING: motivate mems, resolve conflicts, deal w/ behaviors, choose communication

channel CONTROLLING: evaluation whether things are going as planned, compare performance

with set goals MGRL ROLES/CONTEMPORARY MODEL OF MANAGING by Henry Mintzberg

involves REFLECTION/THINKING & ACTION/DOING INTERPERSONAL ROLES: figurehead, leader, liaison INFORMATIONAL: monitor, disseminator, spokesperson DECISIONAL: entrepreneur, disturbance handler, resource allocator, negotiator managers can influence actions by: managing the 1 actions 2 people 3 info

SKILLS/level of importance by Katz TECHNICAL: job specific knowledge & techniques, First Line Managers HUMAN: work well w people, individually/group, Middle Managers CONCEPTUAL: conceptualize abstract/complex situations, Top Managers

WHY STUDY MGMT? 1) Universality of it 2) Reality of work 3) Rewards

SUSTAINABILITY: firms ability to achieve goals and up SH value by integrating social/econ/envi opportunities to its strategies

How much difference does a manager make in firm performance? (success/failure) OMNIPOTENT VIEW: directly responsible SYMBOLIC VIEW: influenced/constrained by external forces

EXTERNAL ENVIRONMENT (External Constraint) outside forces/factors that affect performance;

Econ, Demographic, Pol/Legal, Sociocultural, Tech, Global How it affects managers?

JOBS/EMPLOYMENT: availability, how jobs created and managed -> w/c affects POLC ENVI UNCERTAINTY: degree of change (high: DYNAMIC; music industry vs low: STABLE;

no competitors & tech change) & complexity (complex: lots of compet, customers, suppliers vs simple; acquiring compet) in orgs envi

STAKEHOLDER RELATIONSHIPS: Stakeholders: constituencies (internal/external) in orgs

envi that are affected by orgs actions, in turn can influence the org. SB: coffee farmers, employees

ORG CULTURE (Internal Constraint) shared values, principles, traditions that influence the way mems act how things are done here,

what is good employee behavior, what does it takes to get ahead

STRONG CULTURE: key values are deeply held and widely shared; high loyalty and performance; tho

this might prevent from trying new approaches

Where does it come from?:

PHILO of FOUNDERS> SELECTION CRITERIA > TOP MGMT/SOCIALIZATION > ORG CULTURE How to maintain? certain practices; give bonus to subordinates How to help employees adapt? Thru socialization; SB training How employees learn culture? Stories, Rituals, Material Symbols, Language How does culture affect managers? how managers POLC Workplace Spirituality: culture that promote a sense of purpose thru meaningful work

Spiritual Org: sense of purpose, indiv devt, trust/openness, employee empowerment, & expression. BUT: is spirituality and profit compatible?

What is PAROCHIALISM viewing the world solely thru own eyes/perspective; dont recognize that others have differenct ways

of living/working; ours is better than theirs, sign: Monolingualism (USA) Types of Global Attitudes? ETHNOCENTRIC ATTITUDE: best work practices are from home country; dont trust foreign POLYCENTRIC: employees in host country knows best; let those employees figure it out GEOCENTRIC: world oriented view, best approaces/people are from around the globe

What shapes the Global Trade? REGIONAL TRADING ALLIANCES: european union, NAFTA, ASEAN, SAARC GLOBAL TRADE MECHANISMS: world trade org, IMF, OECD

Different types of International Orgs? MULTINATIONAL CORP: international firm that operates in many contries GLOBAL COMPANY: ethnocentric att, home country manages MULTIDOMESTIC CORP: polycentric attitude, leave decisions to local TRANSITIONAL/BORDERLESS ORG: geocentric att

How do orgs go international? GLOBAL (OUT)SOURCING: buy cheapest materials/labor from wherever; tho its risky EXPORTING then IMPORTING: minimal risk, so small business often use this LICENSING/FRANCHISING: former: manufacturers, latter: service STRATEGIC ALLIANCE: partnership to share resources/knowledge to develop products

Joint Venture: partners form separate independent org for some purpose FOREIGN SUBSIDIARY: invest in other country as separate independent office

Challenges in managing in a global environment? POL/LEGAL ENVI: laws that affect their business; even if not risky, still know the differences ECON ENVI: 1) Free Market (private sector owns resources) 2) Planned Econ (centralized govt);

inflation, exchange rates, tax policies CULTURAL ENVI: mexican employees- fiesta

Org Culture vs National Culture according to studies, national culture?

WAYS TO ASSESS CULTURE:

1) GLOBAL FRAMEWORK/ GLOBE a) Power Distance: how unequally shared power is b) Uncertainty Avoidance: reliance on social norms to alleviate unpredictable events c) Assertiveness: be tough, assertive, competitive d) Humane Orientation: be fair, altruistic, generous caring and kid e) Future Orientation: rewards planning, investing in future, (future oriented behavior) f) Institutional Collectivism: g) Gender Differentiation: h) In Group Collectivism i) Performance Orientation

2) 5 DIMENSIONS OF NATIONAL CULTURE by Geert Hofstede

What are the challenges in doing global business? TOO MUCH OPENNESS due to globalization then theres significant cultural differences MANAGING A GLOBAL WORKFORCE

What do you need when managing a global workforce? CULTURAL INTELLIGENCE/awareness/sensitivity: knowledge of culture as a concept, mindfulness,

behavioral skills GLOBAL MINDSET: Intellectual capital, Psychological Capital, Social Capital

What is WORKPLACE DIVERSITY? ways in which mems of an org differ and be similar to one another

Surface Level: age, gender, race Deep Level: values, personality, work preferences

WHY is this IMPORTANT? People Management: better use talents, ^ team prob-solving, attract/retain diverse ppl Org Performance: reduced costs, ^ prob-solving ability, improved system flexibility

Strategic: better understand marketplace, ^ sales, competitive adva, moral/ethical TYPES:

Global Workforce Changes: Total world population: may reach peak Aging Population

Challenges in managing diversity Personal Bias

Bias: tendency to prefer X, Prejudice: outcome of bias, preconceived belief/opinion toward a person/group

Stereotyping: judging based on perception of group to wc she belongs which leads to discrimation

Glass Ceiling: invisible barriers that separates women/minorities from top mgt positions INITIATIVES

Mentoring: experienced mem provides advice and guidance less experienced; provides career devt and social support

Diversity Skills Training: training to educate ppl about importance of diversity Employee resource group: consist of emps connected by some dimension of diversity

What is SOCIAL RESPONSIBILITY? Social Obligation: engage in social actions to meet certain economic and legal responsibilities;

classical view of maximizing profit as only purpose Socioenonomic View: responsibilities go beyond making profits, includes society welfare Social Responsiveness: to meet popular social need Social Responsibility: engages in social action bc its the right thing to do, act for society

Green Management: considers impact of org to environment Legal Approach: do whats required Market Approach: respond to envi preferences of customers Stakeholder Approach: meets demand of multiple stakeholders (emps, suppliers)

Activist Approach: looks for ways to protect earth Factors that determine ethical and unethical behaviour

Stages of Moral Devt

Individual Charac: Values: basic convictions about what is right wrong

Ego Strength: measures strength of persons convictions; Locus of Control: degree to which ppl believe they control their fate; internal or external

Structural Vars: orgs structure can influence how emps behave Org Culture: Value-based judgment: orgs value guides emps in the way they do jobs Issue Intensity:

Encouraging ethical behaviour Code of Ethics: formal statement of orgs value and ethical rule Performance appraisal Ethics training Protective mechanisms

Whistleblowers: those who raise ethical concerns even if risky Social Entrepreneur: person/org who tries to improve society using practical, innovative, sustainable What are the two views on CHANGE PROCESS?

1. CALM WATERS METAPHOR: Kurt Lewins 3-ste change process a. unfreeze status quo, change to new state, refreeze to make change permanent

2. WHITE WATER RAPIDS METAPHOR: What are the TYPES OF ORG CHANGE? Org Changes: things chaged in workplac

Change Agent: someone sho assumes the managing of change process (manager/nonmgr)

Automation: machines do what ppl do Computerization: sophisticated Info system Organizational Devt (OD): change methods that focus on ppl and nature of interpersonal work

relationships; Survey Feedback, Sensitivity Training, Team Building, Intergroup Devt, Process Consultation

Managing RESISTANCE to Change WHY do ppl resist?

uncertainty, habit, concern over personal loss, belief that change is not good HOW to reduce

Contemporary ISSUES in managing change CHANGING ORG CULTURE EMPLOYEE STRESS: stress is adverse reaction to excessive pressure; not always bad; stressors

cause stress; Task Demands: factors related to emps job; Role Demands: pressures placed on employee; Role Conflicts, Role Overload: expected to do without enough time, Role Ambiguity: expectations arent clearly understood; Interpersonal Demands: pressures created by other emps; Org Structure can also increase stress, Org Leadership: style of managers, Type A personality: time urgency, competitive drive, dont accept leisure time; Type B: otherwise Symptoms of stress: physical, psychological, behavioural To reduce:

Creativity vs Innovation Creativity: ability to combine ideas in a unique way, make unsual associations Innovation: outcomes of creative process Innovation Variables

II. PLANING RC: 7-9 What are the decisions that managers do? TOP: about goals, where to locate facilities, new markets to get into MIDDLE/FIRSTLINE: prod scheds, prod quality problems, pay raises, employee discipline

What are the steps in DECISION MAKING PROCESS?

1. Identify a problem (discrepancy bet. existing and desired condition): be careful to not confuse problems with symptoms of the problem (decline sales symptom; poor marketing); SUBJECTIVE

2. Identify decision criteria: eg Need new laptop; memory, processor, display quality 3. Allocate weights to criteria: 10-1 4. Develop alternatives: just list, dont evaluate yet 5. Analyze alternatives: then evaluate using criteria in Step 2, then multiply the weights to get

weighted alternatives; skippable 6. Select alternative 7. Implement alternative: *if long term decision, reassess envi for changes 8. Evaluate decision effectiveness

What are the 4 perspectives managers make decisions? (APPROACHES)

1. Rationality: make logical & consistent choices to maximize value; rational decision: fully objective/logical; problem: clear, has specific goal; decisions are made in best interest of org

2. Bounded Rationality: (more realistic than #1) make decisions rationally, but are bounded/limited by their ability to process info. Rather than maximize, they SATISFICE (good enough); decision making is also influenced by org culture, internal pol, power considerations & ESCALATION OF COMMITMENT (increased commitment to prev decision even if theres evidence that its wrong)

3. Role of Intuition: decide based on experience, affect-initiated (emotions/feelings), cognitive-based (skills/know/training), Subconscious mental processing, & Values/Ethics; complements #1 & #2

4. Role of Evidence-Based mgt: systematic use of best available evidence to improve mgmt practice; ELEMENTS: expertise/judgment, evaluated external evidence, stakeholders opinions/preferences/values, relevant internal org factors; Find the most important element

How can you CLASSIFY problems and decisions? Structured Problems & Programmed Decisions

probs that are straightforward, familiar, and defined the decision is repetitive that can be handled thru routine approach 3 TYPES OF PROG. DECISIONS:

Procedure: series of sequential steps; Rule: explicit statement what can/cannot be done Policy: guideline; establishes general parameters

Unstructured Problems & NonProgrammed Decisions problems that are new/unusual, info is ambiguous/incomplete the needed decisions are unique and nonrecurring, custom made solutions

Lower managers handle routine decisions, the higher up you go, the more complex decisions What are the different decision making CONDITIONS? (182!!!) Certainty: outcome of every alternative and their likelihood is known Risk: estimate the probability of certain outcomes; use historical data/past experiences Uncertainty: you dont know outcomes or their probability; (maximax, maximin, minimax regret)

What are the different decision making STYLES Linear-NonLinear Thinking Style Profile

Linear: rational/logical/analytical; use external data/facts & process these through rational, logical thinking

NonLinear: intuitive/creative/insightful; use internal info (feelings/intuition) & process these through internal insights, feelings, hunches

Decision Making Biases & Errors HEURISTICS (rules of thumb) - useful but unreliable Overconfidence Bias: think you know more than you do/hold unrealistic positive view of

themselves and performance Immediate Gratification Bias: wants immediate rewards but avoid immediate costs;

decisions w/ quick payoffs are appealing for them Anchoring Effect: decision makers fixate on initial info, then dont adjust w/ subsequent info Selective Perception Bias: selectively organizes and interprets events based on their

biased perception; these influence the steps in decision making process Confirmation Bias: seeks out info that reaffirms their past choices and disregard those who

contradict them Framing Bias: selects/highlights certain aspects of situation while excluding others Availability Bias: remember events that are most recent/vivid Representation Bias: assess likelihood of event based on how it resembles similar event Randomness Bias: creates meaning out of random events Sunk Costs Error: occurs when forgets that current choices cant correct the past SelfServing Bias: quick to take credit and success and blame outside factors for failure Hindsight Bias: falsely believe that theyve accurately predicted an outcome, when it already

happened What do managers need to do to make effective decisions? Understand cultural differences Know when to call it quits Use an effective decision making process Build and orf that spot the unexpected and adapt to changes (Highly Reliable Orgs HROs)

Effective decision making process Focus on whats important is Logical and consistent acknowledges both subjective and objective thinking/ blends analytics/intuitive requires only enough info necessary encourages to gather relevant info and informed opinion straightforward, easy, flexible

Habits of HROs not tricked by success deferring experts to frontline letting unexpected circumstances provide the solution embracing complexity anticipating and recognizing limits

What is (formal) PLANNING?

defining goals, establishing strategies to achieve those, and develop plans to integrate and coordinate work activities;

Why plan? (PURPOSE) provides direction; (know what to contribute) reduces uncertainty; (anticipate change, develop appropriate responses) minimizes waste and redundancy establishes goals/standards used in controlling

What are the types of GOALS and PLANS they use? GOALS (objectives): desired outcomes/targets; guide mgts decisions

Financial: increase net profit Strategic: be the best blah blah Stated: official statements; pero often vauge/ irrelevant to what actually goes on Real: goals that firm actually pursues

PLANS: documents that outline how goals are to be met BREADTH

Strategic applies to entire org, overall goals Operational encompass particular operational area

TIME FRAME Short Term 1 year or less Long Term

SPECIFICITY Specific clearly defined/no room for interpretation Directional flexible, general guidelines

FREQUENCY OF USE Single use Standing ongoing, for repeated activities; eg policies/rules

**Strategic Plans: LONG TERM, DIRECTIONAL, SINGLE USE **Ops Plans: SHORT TERM, SPECIFIC, STANDING

What are the different approaches in GOAL SETTING? Traditional: goals set by top managers flow down thru org as subgoals; hard to do in real life; goals

may be distorted as it goes down Means-End Chain: lower levels (means) to reach upper levels goals (end)

Management by Objectives (MBO): setting mutually agreed upon goals and using those to evaluate employee performance; uses goals to motivate employees (thru rewards) Goal Specificity Participative Decision Making Explicit Time Period Performance Feedback

WELL WRITTEN GOALS are written in terms of outcome not actions, measureable, clear time frame, challenging yet attainable, written down, communicated to members

STEPS 1. Review orgs mission/purpose 2. Evaluate available resources; goals should be realistic 3. Determine goals individually/with others 4. Write down the goals and communicate them 5. Review results

Contingency Factors that affect DEVELOPING PLANS? Organizational Level

Environmental Uncertainty: high uncertainty needs specific but flexible plans Length of future commitments: Commitment Concept- plans should be long enough to meet

commitments What are the APPROACHES to Planning? How an org plans-> look at WHO plans Traditional Approach: top level managers and Formal Planning Department Involve more members

What are the contemporary issues in Planning? Planning effectively in dynamic environment

Develop specific, but flexible plans Continue formal planning to see effect even if envi is highly uncertain Make Org Hierarchy flatter (allow lower levels to set goals develop plans)

Using envi scanning, esp. competitive intelligence ENVI SCANNING: screening info and detect trends

Compet Intel: gather info about competitor and anticipate actions What is STRATEGIC MANAGEMENT? task involving POLC to develop orgs strategies

Strategies are plans on how orgs do whatever their business do, how to compete, and how to attract and satisfy customers

Business Model: how a company is gonna make money; focuses on 1 whether people will value whatever theyre doing, and 2 if theyre going to make money on that

Why is strategic mgt important? 1. Can make a difference on how well an org performs 2. Because they face continually changing environment 3. Orgs are complex and diverse

What is the Strategic Management Process? 6-step process that encompass strategy planning, implementation, and evaluation

1. Identify Mission/Goals/Strategies

a. Mission: statement of purpose; identify what to do 2. Do External Analysis

a. Opportunities: positive trends in exte envi b. Threats: negative trents

3. Do Internal Analysis Resources: assets (what) Capabilities: skills and abilities (how) Core Competencies: major value creating capabilities

a. Strengths: what it does well; unique resources b. Weakness: doesnt do well, resources needed but doesnt have

4. Formulate strategies a. 3 Main types of strategies: corporate, competitive, functional

5. Implement strategies 6. Evaluate results

What is CORPORATE STRATEGY? determines what businesses a company wants to be in TYPES:

Growth: expand; use concentration, vertical&horizontal integration, diversification Concentration: focus on primary line of business Vert Integ: backward: be own supplier; forward: be own distributor Hori Integ: combine with competitors (acquisition) Divers: related: combine w/ firms in different but related industries; unrelated:

different and unrelated industries Stability: serve same people, w same product/service, maintain market share Renewal: for declining firms; cut costs, restructure org ops

Retrenchment: ST renewal, minor performace problems Turnaround: for more drastic problems

HOW are corp strategies MANAGED? Thru tool called corporate portfolio matrix BGC Matrix (by Boston Consulting Group):

Sell/Liquidate DOGS Milk CASH COWS. limit new investment in them, and instead use cash on STARS

and ??? with strong potential to grow When market matures, STARS will eventually become CASH COWS

What is COMPETITIVE STRATEGY? how org will compete in its businesses Strategic Business Units (SBUs): org has several independent business with own compet strats Competitive Advantage: what sets an org apart (distinctive edge); can come from core

competencies: doing something others cant do, or doing it better than those who can; or from resources: having something others dont have Quality as compet advan How to ASSESS competition and SUSTAIN: Michael Porters Five Forces Model

These 5 determine industry attractiveness and profitability Porters 3 Competitive Strategies

Cost Leadership Strategy: lower costs Differentiation Strategy: have unique, valued products Focus Strategy: cost focus or differentiation in a narrow segment

What are FUNCTIONAL STRATEGIES? strats used by various functional depts to support competitive strategy

Current Strategic Management ISSUES Need for Strategic Leadership: ability to anticipate, envision, maintain flexibility ,etc to initiate

changes to create a future for the org

Need for Strategic Flexibility: ability to recognize external changes, commit resources, know what

strategic decision isnt working Org Strats for Todays Envi

e-Business: good for cost leaders and differentiator, and focuser; clicks-and-bricks Customer Service: give customers what they want, effective customer communication, org

culture Innovation: apply existing tech to new uses, where to emphasise innovation efforts (basic

research, prod devt, process devt), decide on timing strategy (first mover)

III. ORGANIZING RC: 10-12 (13?) What is ORGANIZING? arranging and structuring work to accomplish goals arrangement of jobs> Organization Structure

when managers create/change the structure they engage in Organizational Design 6 Key Elements of Org Design

i. Work Specialization: dividing activities into separate tasks (division of labor); high productivity but too much can lead to boredom/fatigue> low productivity

ii. Departmentalization: how jobs are grouped together FUNCTIONAL: ppl with similar skills/know; coordination, specialization;

poor communication, limited view of org goals GEOGRAPHICAL: serve geographic needs better; duplication of functions,

isolation from other org areas PRODUCT: specializations, managers can become experts, closer to

customers; duplication of fcns, limited view of org goals PROCESS: efficient flow of activities; can only be used for certain products CUSTOMER: customer needs are met; duplication of fcns, limited view of

org goals Trend: Cross Functional Team: consists of individuals from various

functional specialties (AdCore!!!) iii. Chain of Command: line of authority from up to down, who reports to whom

Authority: rights inherent in a managerial position Acceptance theory of authority: authority comes from willingness

of subordinates to obey; they will obey if they understand the order order is consistent with mission order doesnt conflict w personal beliefs they are able to perform task

Line Authority: manager can direct work of an employee Staff Authority: when org becomes too large for line authority

Responsibility: oblig to perform Unity of Command principle: person should report to only 1 manager

iv. Span of Control: how many can you manage efficiently and effectively; determines the # levels and managers in org Traditional View: no more than 5 or 6 Contemporary: no magic number the wider the span, the more cost efficient (less managers), but too

much-> reduce effectiveness v. Centralization and Decentralization: which level are decisions made?

Centralized: upper levels Decentralized: more lower levels Employee Empowerment: shift to decentralized

vi. Formalization: how standardized the jobs are and extent to w/c employee behaviours is guided by rules/procedures HIGH: emps have little discretion over whats/when/how its done LOW: they have!

Mechanistic Structure (bureaucracy): natural result of combining the 6 elements, rigid/stable

Organic Structure: highly adaptive, loose/flexible; has division of labor but work is not standardized; for emps that are professional and can handle diverse jobs

CONTINGENCY FACTORS that affect mechan/organic model of ord design

i. Strategy: organic for innovative, mechan for tightly control costs ii. Size: large: mechanistic

iii. Tech: the more routine, the more mechan; Woodwards Unit Prod: small batches: organic Mass Prod: large batches: mechan Process Prod: complex: organic

iv. Degree of Envi Uncertainty: stable/simple envi: mechan; the greater the uncertainty, the more organic is better

TRADITIONAL ORG DESIGNS (tends to be more mechanistic in nature) i. Simple: low departmentalization, wide span of control, centralized, little

formalization ii. Functional: groups similar/related occupational specialties together; functional

departmentalization applied to entire org iii. Divisional: made up of separate business units/divisions

Why organize? (PURPOSE)

What are CONTEMPORARY ORG DESIGNS? (more organic) Team Structure: entire org is made of work teams; employee empowerment is crucial bc theres no

line of managerial authority that flows from top; teams are held responsible for performance; complements functional/divisional structure; have efficiency of bureaucracy but flexible

Matrix-Project: Matrix: assigns specialists from functional departments to work on projects; dual chain of

command- has 2 managers, functional area manager and project leader; violates unity of command

Project: no department to return to; just move on to another projec Boundaryless: not defined by hori/verti, or external boundaries

Internal (boundaries) - horizontal ones imposed by specialization/departmentalization; vertical ones that separate levels and hierarchies

External (boundaries) - separate org from customers/suppliers/stakeholders TO ELIMINATE

Virtual Orgs: small, temporary, full time employees Network Orgs: own employees, then outside suppliers (get the best)

Learning: org that develops the capacity to continuously learn, adapt, and change; emps constantly acquire and share new knowledge and apply them

Organizing for Collaboration

INTERNAL COLLAB

Cross Functional Teams Task Forces (ad hoc committee): temporary team to tackle specific ST problem Communities of Practice: group who share a concern/problems/passions about a topic,

who deepens their know by interacting EXTERNAL COLLAB

Open Innovation: allows innovations to transfer in and out (like from customers) Strategic Partnerships: 2/more firms combine resources/capabilities for purpose

Flexible Work Arrangements Telecommuting: work at home, linked to workplace by computer Compressed Workweeks: work longer hours per day, less day per week

Flextime (flexible work hours): # hours quota per week Job Sharing: 2/more people split 1 full time job

Contingent Workforce (Organizing Issue) temporary, freelance, or contract workers issue is: classifying who qualifies

Todays org design CHALLENGES: Keeping employees connected Managing global structural issues

Why is Human Resource Management (HRM) important? Significant source of competitive advantage Is an important part of org strategies orgs way of treating their people significantly impacts performance

What EXTERNAL FACTORS that affect the HRM Process?

Economy: employment Employee Labor Unions: collective bargaining agreement Govtal Laws/Regulations: affirmative action Demographic Trends

Identifying/Selecting competent employees

1. Human Resource Planning: process to ensure they have right #/kinds of capable people, in right places at right times; thru this: avoid sudden people shortages/surpluses

a. CURRENT ASSESSMENT: job analysis (defines a job, necessary behaviors for it) by interviewing/observing

b. MEETING FUTURE HR NEEDS: to estimate areas in w/c it will be under/overstaffed 2. Recruitment/Decruitment: locating,identifying,attracting applicants

a. Recruitment sources: internet, referrals, company website, college/professional recruiting b. Decruitment options: fire, layoff, attrition, transfers, early retirement, job sharing

3. Selection a. Selection Tools:appforms,writtentests,performancesimtest,interviews,

backgroundinvestigation,physicalexamb. RealisticJobPreview:includesbothpositiveandnegativeinfoaboutjob

Providing employees with needed skills and knowledge Orientation

Work Unit: familiarize emp with goals of unit, how his job contributes to goals, introduction to coworkers

Org Orie: tells about company goals, history, philo, procedures rules, policies Training: as jobs demand change, skills need to be updated

METHODS:

Retaining Employees Employee Performance Management: establishes perf standards to evaluate performance

Appraisal Methods: written essays, critical incident, BARS, MBO Compensation and Benefits: develop compensation that reflects the nature of work and workplace;

Who gets paid what? Skill Based Pay: title doesnt matter, skills do; good for manufacturing than in service/tech

orgs Variable Pay: pay is contingent on performance

Contemporary Issues in HRM Downsizing: layoffs; to remedy, communicate openly, follow laws, have plan for empty offices Sexual Harassment: workplace romances Work-Life Balance: offer family friendly benefits (on site child care) Controlling HR Costs: employee healthcare, pension plan