Chapter 11
Managing Human Resource
Systems
MGMT
Chuck Williams
Designed & Prepared by
B-books, Ltd.
1
Copyright ©2008 Cengage Learning. All rights reserved
The Human Resource Management
Process
Attracting Qualified
Employees
Developing Qualified
Employees
Recruiting
Selection
Training
Performance Appraisal
Keeping Qualified
Employees
Compensation
Employee Separation
2
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Employment Laws
After reading this section,
you should be able to:
1. explain how different employment laws affect
human resource practice.
3
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Employment Legislation
Federal
Employment
Laws
Adverse Impact
and
Employment
Discrimination
Sexual
Harassment
Laws
1
4
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Federal Employment Laws
Equal Pay Act of 1963
prohibits unequal pay for males and
females doing similar work
Civil Rights Act of 1964
prohibits discrimination on basis of
race, color, religion, gender, origin
Age Discrimination in
Employment Act of 1967
prohibits discrimination against
persons age 40 and over
Pregnancy Discrimination
Act of 1978
prohibits discrimination in employment
against pregnant women
1.1
5
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Federal Employment Laws (cont.)
Americans with
Disabilities Act of 1990
prohibits discrimination on the basis of
physical or mental disabilities
Civil Rights Act of 1991
strengthened the Civil Rights Act of 1964
Family & Medical Leave
Act of 1993
permits workers to take up to 12 weeks
of unpaid leave for pregnancy, etc.
Uniformed Services
Employment &
Reemployment Rights Act
prohibits discrimination against those
Adapted from Exhibit 11.2
serving in the Armed Forces
1.1
6
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Adverse Impact and
Employment Discrimination
Disparate
Treatment
Intentional discrimination that
results in equally qualified people
being treated differently
Adverse
Impact
Unintentional discrimination that
works to the disadvantage of
members of protected groups
Four-Fifths
Rule
1.2
Comparison of selection rates of a
protected to a nonprotected group to
determine if adverse impact has
occurred
7
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Equal
Employment
Equal
EmploymentOpportunity
Opportunity Laws
Laws –
Title VII Civil(Cont.)
Rights Act 1964Four-Fifths Rule
8
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Sexual Harassment
Quid
Pro Quo
Hostile
Work
Environment
Employee outcomes depend on
whether an individual submits to
sexual harassment
Unwelcome and demeaning sexually
related behavior creates an
intimidating and offensive work
environment
1.3
9
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Common Managerial Mistakes
in Sexual Harassment Laws
Assuming:
•
…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
1.3
10
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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
1.3
11
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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.
12
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Beyond the Book
Human Resource Planning
Supply and Demand
of
Human Resources
Human Resource
Information
Systems
13
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Forecasting Demand and Supply
Internal
Factors
Work
Force
Forecast
External
Factors
14
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Beyond the Book
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
15
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Beyond the Book
External Forecast Factors
•
Demographics of labor
supply

Unemployment rate
•

Labor unions
Geographic population
shifts

•
Availability of
applicants
Manufacturing-to

service-to information
based economy shift

Economic conditions
•
Technological advances
Competitors
Growth of businesses
16
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Beyond the Book
Forecast Methods
Direct
Managerial
Input
Based on projections of cash flows,
expenses, or financial measures
Best
Guess
Based on managers’ assessment of
current head count plus a guess on
relevant internal/external factors
Statistical/
Historical Ratios
Based on statistical methods, such as
multiple regression, in combination
with historical data
17
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Recruiting
Job Analysis
and
Recruiting
Internal
Recruiting
External
Recruiting
2
18
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Job Analysis and Recruiting
Information Collected by a Job Analysis
 work activities
 tools and equipment used to do the job
 context in which the job is performed
 personnel requirements for performing the job
2.1
19
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Job Analysis and Recruiting
Recruiting
Selection
Training
Performance
Separation
Appraisal
HR Subsystems
Job Description
Job
Specification
Job Analysis
2.1
20
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Job Analysis and Recruiting
Job
Description
written description of the basic tasks,
duties, and responsibilities required
of an employee holding a particular job
Job
Specification
a written summary of the qualifications
needed to successfully perform a job
2.1
21
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Internal Recruiting
2.2
• 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
22
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Methods for External
Recruiting
•
•
•
•
•
•
•
Advertising
Employee referrals
Walk-ins
Outside organizations
Employment services
Special events
Internet job sites
2.3
23
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Ari Weinzweig’s Tips on
Hiring for Cultural Fit
Beyond the Book
• Ari Weinzweig is the co-founder of Zingerman’s, one of
the most successful delis in the United States.
• Cultural fit is important at Zingerman’s. To succeed,
employees must love food, serve other employees (not
just customers), be flexible about job roles, and want to be
great.
• Ari’s tips: (1) Share the company vision in the interview.
(2) Interview in the conditions in which an employee will
be working—at Zingerman’s, on a busy, noisy deli floor.
(3) Involve the candidate’s future co-workers in the
interview; they have to work with the candidate if hired.
(4) If a candidate doesn’t smile, he or she is out.
Source: “Ask Inc.,” Inc., December 2007, 84.
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24
Selection
Application Forms
and Résumés
References and
Background Checks
Selection
Tests
Interviews
3
25
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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
3.1
26
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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
3.2
27
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Selection Tests
Specific
Ability
Assessment
Centers
Cognitive
Ability
Selection
Tests
Biographical
Data
Work
Sample
Personality
3.3
28
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Interviews
• Unstructured Interviews
– free-flow of questions
• Structured Interviews
– interviewer uses standard set of prepared
questions
• Semi-structured Interviews
3.4
– some structure combined with interviewer
judgement
29
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Questions in Structured Interviews
Situational Questions
Behavioral Questions
Background Questions
Job-Knowledge Questions
3.4
30
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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.
31
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Training
Training
Needs
Training
Methods
Training
Evaluation
4
32
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Determining Training Needs
Identify
Performance
Deficiencies
Listen to
Customer
Complaints
Conducting
Needs
Assessments
Survey
Employees
and Managers
Test Employee
Skills and
Knowledge
4.1
33
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Training Methods
Impart Information
and Knowledge
• films and videos
• lecture
• planned readings
Develop Analytical
and Problem-Solving
Skills
• case studies
• coaching and mentoring
• group discussions
Practice, Learn, or
Change Job
Behaviors
•
•
•
•
All of the above
• Computer-based learning
on-the-job training
role-playing
simulations and games
vestibule training
4.2
34
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Evaluating Training
Reactions
how satisfied trainees were
with the program
Learning
how much employees improved
their knowledge or skills
Behavior
how much employees actually changed
their on-the-job behavior
Results
how much training improved
job performance
4.3
35
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Performance Appraisal
Measuring
Job
Performance
Sharing
Performance
Feedback
5
36
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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
5.1
37
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Measuring Job Performance
Improving Job Performance Measurements
Improve Performance
Appraisal Measures
Train
Performance Raters
5.1
38
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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)
5.1
39
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Subjective Performance
Appraisal Scales
5.1
40
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Rater Training
• Teach raters how to avoid errors
• Improve rating accuracy
• Video training and role playing often used
5.1
41
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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
5.2
42
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Performance Feedback
What to Discuss in Performance Appraisal
Feedback Sessions
• Overall progress
• Problems encountered in meeting job
requirements
• Opportunities to improve performance
• Long-range plans and opportunities
• General discussion of possible plans and
goals for the coming year
5.2
43
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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.
44
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Compensation
Compensation
Decisions
Employment
Benefits
6
45
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Compensation Decisions
Pay
Level
• Job
evaluation
Pay
Variability
Pay
Structure
• Piecework
• Hierarchical
• Commission
• Compressed
• Profit sharing
• Employee
stock
ownership
plans
• Stock options
6.1
Employment
Benefits
• Cafeteria
plans
• Flexible plans
• Payroll
deductions
Beyond
the Book
46
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Pay-Level Decisions
• Job evaluation is used to determine the
worth of jobs
– pay the “going rate”
6.1
• 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
47
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Pay-Variability Decisions
•
•
•
•
Piecework
Commission
Profit sharing
Employee stock ownership plans
(ESOPs)
• Stock options
6.1
48
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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
6.1
49
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Beyond the Book
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
50
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Employee Separations
Terminations
Downsizing
Retirements
Turnover
6.2
51
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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
firing should be done in private
6.2
52
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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.
6.3
53
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Retirement
Early Retirement Incentive Programs…
• 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.
6.4
54
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Voluntary 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
6.5
55
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Beyond the Book
Human Resource
Information Systems
•
Computerized employee
information systems use:
• transaction processing
• employee self-service
• decision support
56
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Human Resource
Information Systems
Beyond the Book
Personal Data
Promotion Data
Work History
Educational
Data
Performance
Appraisal
HRIS
Company
Employment
History
57
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