Chapter 11
Chapter 11
Managing Human Resource
Systems
MGMT3
Designed & Prepared by
B-books, Ltd.
Chuck Williams
1
Copyright ©2011 by Cengage Learning. All rights reserved
The Human Resource Management
Process
Recruiting
Attracting Qualified
Employees
Selection
Training
Developing Qualified
Employees
Performance Appraisal
Keeping Qualified
Employees
Compensation
Employee Separation
2
Copyright ©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.
3
Copyright ©2011 by Cengage Learning. All rights reserved
1
Chapter 11
Beyond the Book
Human Resource Planning
Supply
Supplyand
andDemand
Demand
of
of
Human
HumanResources
Resources
Human
HumanResource
Resource
Information
Information
Systems
Systems
4
Copyright ©2011 by Cengage Learning. All rights reserved
Beyond the Book
Forecasting Demand and Supply
Work Force
Forecasting
Forecasting
Methods
•Direct
•Directmanagerial
managerialinput
input
•Internal
•Internalforecasts
forecasts
•Best
•Bestguess
guess
•External
•Externalforecasts
forecasts
•Statistical
•Statistical//historical
historical
ratios
ratios
5
Copyright ©2011 by Cengage Learning. All rights reserved
Beyond the Book
Forecasting Demand and Supply
Internal
Internal
Factors
Factors
Work
Work
Force
Force
Forecast
Forecast
External
External
Factors
Factors
6
Copyright ©2011 by Cengage Learning. All rights reserved
2
Chapter 11
Beyond the Book
Internal Forecast Factors
New positions
New equipment and
technology
Eliminated positions
Terminations
Retirements
Resignations
Transfers
Deaths
Promotions
Organization’s mission
Productivity of current
employees
Skills/education of
current employees
Turnover
7
Copyright ©2011 by Cengage Learning. All rights reserved
Beyond the Book
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
8
Copyright ©2011 by Cengage Learning. All rights reserved
Beyond the Book
Forecast Methods
Direct
Direct
Managerial
Managerial
Input
Input
Based
Based on
on projections
projections of
of cash
cash flows,
flows,
expenses,
expenses, or
or financial
financialmeasures
measures
Best
Best
Guess
Guess
Based
Based on
on managers’
managers’ assessment
assessment of
of
current
current head
head count
count plus
plus aa guess
guess on
on
relevant
relevant internal/external
internal/external factors
factors
Statistical/
Statistical/
Historical
Historical Ratios
Ratios
Based
Based on
on statistical
statisticalmethods,
methods, such
such as
as
multiple
multiple regression,
regression, in
in combination
combination
with
historical
data
with historical data
9
Copyright ©2011 by Cengage Learning. All rights reserved
3
Chapter 11
Beyond the Book
Human Resource
Information Systems
•
Computerized employee
information systems use:
• transaction processing
• employee self-service
• decision support
10
Copyright ©2011 by Cengage Learning. All rights reserved
Human Resource
Information Systems
Personal
PersonalData
Data
Beyond the Book
Promotion
Promotion Data
Data
Work
WorkHistory
History
HRIS
HRIS
Educational
Educational
Data
Data
Company
Company
Employment
Employment
History
History
Performance
Performance
Appraisal
Appraisal
11
Copyright ©2011 by Cengage Learning. All rights reserved
Employment Legislation
Federal
Employment
Laws
Adverse Impact
and
Employment
Discrimination
Sexual
Harassment
Laws
1
12
Copyright ©2011 by Cengage Learning. All rights reserved
4
Chapter 11
Federal Employment Laws
Equal
EqualPay
PayAct
Actof
of1963
1963
prohibits
prohibitsunequal
unequalpay
payfor
formales
malesand
and
females
femalesdoing
doingsimilar
similarwork
work
Civil
CivilRights
Rights Act
Actof
of1964
1964
prohibits
prohibitsdiscrimination
discriminationon
onbasis
basisof
of
race,
race,color,
color,religion,
religion,gender,
gender,origin
origin
Age
Age Discrimination
Discriminationin
in
Employment
Employment Act
Actof
of1967
1967
prohibits
prohibitsdiscrimination
discriminationagainst
against
persons
personsage
age40
40and
andover
over
Pregnancy
PregnancyDiscrimination
Discrimination
Act
Actof
of1978
1978
prohibits
prohibitsdiscrimination
discriminationininemployment
employment
against
againstpregnant
pregnantwomen
women
1.1
13
Copyright ©2011 by Cengage Learning. All rights reserved
Federal Employment Laws
(cont.)
Americans
Americanswith
with
Disabilities
DisabilitiesAct
Actof
of1990
1990
prohibits
prohibitsdiscrimination
discriminationon
onthe
thebasis
basisof
of
physical
physicalor
ormental
mentaldisabilities
disabilities
Civil
CivilRights
Rights Act
Actof
of1991
1991
strengthened
strengthenedthe
theCivil
CivilRights
RightsAct
Actof
of1964
1964
Family
Family&&Medical
MedicalLeave
Leave
Act
Actof
of1993
1993
permits
permitsworkers
workersto
totake
takeup
upto
to12
12weeks
weeks
of
ofunpaid
unpaidleave
leavefor
forpregnancy,
pregnancy,etc.
etc.
Uniformed
UniformedServices
Services
Employment
Employment&&
Reemployment
ReemploymentRights
RightsAct
Act
prohibits
against
those
prohibitsdiscrimination
discriminationAdapted
against
fromthose
Exhibit 11.2
serving
servingininthe
theArmed
ArmedForces
Forces
1.1
14
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Adverse Impact and
Employment Discrimination
Disparate
Disparate
Treatment
Treatment
Intentional discrimination that
results in equally qualified people
being treated differently
Adverse
Adverse
Impact
Impact
Unintentional discrimination that
works to the disadvantage of
members of protected groups
Four-Fifths
Four
Four-Fifths
Rule
Rule
1.2
Comparison of selection rates of a
protected to a nonprotected group to
determine if adverse impact has
occurred
15
Copyright ©2011 by Cengage Learning. All rights reserved
5
Chapter 11
Sexual Harassment
Quid
Quid
Pro
Pro Quo
Quo
Employee
Employeeoutcomes
outcomes depend
depend on
on
whether
whether an
anindividual
individual submits
submits to
to
sexual
sexual harassment
harassment
Unwelcome
Unwelcomeand
anddemeaning
demeaningsexually
sexually
Hostile
Hostile
related
behavior
creates
an
related
behavior
creates
an
Work
Work
intimidating
intimidatingand
andoffensive
offensivework
work
Environment
Environment environment
environment
1.3
16
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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
17
Copyright ©2011 by Cengage Learning. All rights reserved
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
18
Copyright ©2011 by Cengage Learning. All rights reserved
6
Chapter 11
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.
19
Copyright ©2011 by Cengage Learning. All rights reserved
Recruiting
Job
Job Analysis
Analysis
and
and
Recruiting
Recruiting
Internal
Internal
Recruiting
Recruiting
External
External
Recruiting
Recruiting
2
20
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Job Analysis and Recruiting
Information Collected by a Job Analysis
work
work activities
activities
tools
toolsand
and equipment
equipmentused
usedto
todo
dothe
thejob
job
context
context in
in which
whichthe
thejob
jobisisperformed
performed
personnel
personnelrequirements
requirementsfor
forperforming
performingthe
thejob
job
2.1
21
Copyright ©2011 by Cengage Learning. All rights reserved
7
Chapter 11
Job Analysis and Recruiting
Recruiting
Recruiting
Selection
Selection
Training
Training
Performance
Performance Separation
Separation
Appraisal
Appraisal
HR
HR Subsystems
Subsystems
Job
Job Description
Description
Job
Job
Specification
Specification
Job
Job Analysis
Analysis
2.1
22
Copyright ©2011 by Cengage Learning. All rights reserved
Job Analysis and Recruiting
Job
Job
Description
Description
written
writtendescription
descriptionof
ofthe
the basic
basictasks,
tasks,
duties,
duties,and
andresponsibilities
responsibilitiesrequired
required
of
an
employee
holding
a
particular
of an employee holding a particularjob
job
Job
Job
Specification
Specification
aa written
writtensummary
summaryof
ofthe
thequalifications
qualifications
needed
neededto
tosuccessfully
successfully perform
perform aajob
job
2.1
23
Copyright ©2011 by Cengage Learning. All rights reserved
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
24
Copyright ©2011 by Cengage Learning. All rights reserved
8
Chapter 11
Methods for External
Recruiting
•
•
•
•
•
•
•
Advertising
Employee referrals
Walk-ins
Outside organizations
Employment services
Special events
Internet job sites
© Jessica Rinaldi/Reuters/Landov
2.3
25
Copyright ©2011 by Cengage Learning. All rights reserved
Company Websites:
The New Job Board
Beyond the Book
Many 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.
26
Copyright ©2011 by Cengage Learning. All rights reserved
Selection
Application
Application Forms
Forms
and
and Résumés
Résumés
References
References and
and
Background
Background Checks
Checks
Selection
Selection
Tests
Tests
Interviews
Interviews
3
27
Copyright ©2011 by Cengage Learning. All rights reserved
9
Chapter 11
Topics Employers Should Avoid
1.
1.
2.
2.
Children
Children
Age
Age
3.
3.
4.
4.
Disabilities
Disabilities
Physical
Physical Characteristics
Characteristics
© SERDAR YAGCI/iStockphoto.com
5.
5. Name
Name
6.
6. Citizenship
Citizenship
7.
7. Lawsuits
Lawsuits
8.
8. Arrest
Arrest records
records
9.
9. Smoking
Smoking
10.
10. AIDS/HIV
AIDS/HIV
3.1
28
Copyright ©2011 by Cengage Learning. All rights reserved
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
29
Copyright ©2011 by Cengage Learning. All rights reserved
Selection Tests
Specific
Ability
Assessment
Centers
Cognitive
Ability
Selection
Tests
Biographical
Data
Work
Sample
Personality
3.3
30
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10
Chapter 11
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
3.4
31
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Questions in Structured Interviews
Situational
Situational Questions
Questions
Behavioral
Behavioral Questions
Questions
Background
Background Questions
Questions
Job-Knowledge
Job-Knowledge Questions
Questions
3.4
32
Copyright ©2011 by Cengage Learning. All rights reserved
Guidelines for Conducting
Effective Structured Interviews
Planning
Planning the
the Interview
Interview
3.4
•
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
33
Copyright ©2011 by Cengage Learning. All rights reserved
11
Chapter 11
Guidelines for Conducting
Effective Structured Interviews
Conducting
Conducting the
the Interview
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
3.4
34
Copyright ©2011 by Cengage Learning. All rights reserved
Guidelines for Conducting
Effective Structured Interviews
After
After the
the Interview
Interview
• Review your notes immediately
• Evaluate the applicant on each KSAO
• Determine each applicant’s probability of
success and make a hiring decision
3.4
35
Copyright ©2011 by Cengage Learning. All rights reserved
Finding the “Right
People”
Beyond the Book
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.
36
Copyright ©2011 by Cengage Learning. All rights reserved
12
Chapter 11
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.
37
Copyright ©2011 by Cengage Learning. All rights reserved
Training
Training
Training
Needs
Needs
Training
Training
Methods
Methods
Training
Training
Evaluation
Evaluation
4
38
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Determining Training Needs
Identify
Identify
Performance
Performance
Deficiencies
Deficiencies
Listen
Listen to
to
Customer
Customer
Complaints
Complaints
Conducting
Conducting
Needs
Needs
Assessments
Assessments
Survey
Survey
Employers
Employers
and
andManagers
Managers
Test
Test Employee
Employee
Skills
Skillsand
and
Knowledge
Knowledge
4.1
39
Copyright ©2011 by Cengage Learning. All rights reserved
13
Chapter 11
Work Keys
Needs Assessment
Beyond the Book
Step
Step 11
Job
Job Analysis
Analysis
Step
Step 22
Test
Test Employee
Employee Skills
Skills
Step
Step 33
Compare
Compare Employee
Employee Skills
Skills
to
to Required
Required Skills
Skills
40
Copyright ©2011 by Cengage Learning. All rights reserved
Work Keys
Needs Assessment
Beyond the Book
41
Copyright ©2011 by Cengage Learning. All rights reserved
Training Methods
Impart
Impart Information
Information
and
and Knowledge
Knowledge
•• films
films and
and videos
videos
•• lecture
lecture
•• planned
plannedreadings
readings
Develop
•• case
Develop Analytical
Analytical
case studies
studies
and
coaching and
and mentoring
mentoring
and Problem-Solving
Problem-Solving •• coaching
•• group
Skills
groupdiscussions
discussions
Skills
Practice,
Practice, Learn,
Learn, or
or
Change
Change Job
Job
Behaviors
Behaviors
•• on-the-job
on-the-jobtraining
training
•• role-playing
role-playing
•• simulations
simulations and
andgames
games
•• vestibule
vestibuletraining
training
All
All of
of the
the above
above
•• Computer-based
Computer-basedlearning
learning
4.2
42
Copyright ©2011 by Cengage Learning. All rights reserved
14
Chapter 11
Evaluating Training
Reactions
Reactions
how
how satisfied
satisfied trainees
trainees were
were
with
with the
the program
program
Learning
Learning
how
how much
much employees
employees improved
improved
their
their knowledge
knowledge or
or skills
skills
Behavior
Behavior
how
how much
much employees
employees actually
actually changed
changed
their
their on-the-job
on-the-job behavior
behavior
Results
Results
how
how much
much training
training improved
improved
job
job performance
performance
4.3
43
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Performance Appraisal
Measuring
Measuring
Job
Job
Performance
Performance
Sharing
Sharing
Performance
Performance
Feedback
Feedback
5
44
Copyright ©2011 by Cengage Learning. All rights reserved
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
45
Copyright ©2011 by Cengage Learning. All rights reserved
15
Chapter 11
Measuring Job Performance
Improving
Improving Job
Job Performance
Performance Measurements
Measurements
Improve
Improve Performance
Performance
Appraisal
Appraisal Measures
Measures
Train
Train
Performance
Performance Raters
Raters
5.1
46
Copyright ©2011 by Cengage Learning. All rights reserved
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
47
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Subjective Performance
Appraisal Scales
5.1
48
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16
Chapter 11
Rater Training
• Teach raters how to avoid errors
• Improve rating accuracy
• Video training and role playing often used
5.1
49
Copyright ©2011 by Cengage Learning. All rights reserved
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
50
Copyright ©2011 by Cengage Learning. All rights reserved
Performance Feedback
Recommendations for Sharing Performance Feedback
1.
1. Separate
Separatedevelopmental
developmentalfeedback
feedback
from
fromadministrative
administrativefeedback
feedback
2.
2. Base
Baseperformance
performanceappraisal
appraisalfeedback
feedbacksessions
sessions
on
onself-appraisals
self-appraisals
3.
3. Have
Havepeople
peoplediscuss
discussthe
thefeedback
feedbackthey
they
received
receivedwith
withexecutive
executivecoaches
coachesor
orthe
thepeople
people
who
whoprovided
provideditit
5.2
51
Copyright ©2011 by Cengage Learning. All rights reserved
17
Chapter 11
Performance Feedback
What to Discuss in Performance Appraisal
Feedback Sessions
•• Overall
Overallprogress
progress
•• Problems
Problemsencountered
encounteredin
inmeeting
meetingjob
job
requirements
requirements
•• Opportunities
Opportunitiesto
toimprove
improveperformance
performance
•• Long-range
Long-rangeplans
plansand
andopportunities
opportunities
•• General
Generaldiscussion
discussionof
ofpossible
possibleplans
plansand
and
goals
goalsfor
forthe
thecoming
comingyear
year
5.2
52
Copyright ©2011 by Cengage Learning. All rights reserved
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.
53
Copyright ©2011 by Cengage Learning. All rights reserved
Compensation
Compensation
Compensation
Decisions
Decisions
Employment
Employment
Benefits
Benefits
6
54
Copyright ©2011 by Cengage Learning. All rights reserved
18
Chapter 11
Compensation Decisions
Pay
Level
• Job
evaluation
Pay
Variability
Pay
Structure
• Piecework
• Hierarchical
• Commission
• Compressed
Employment
Benefits
• Cafeteria
plans
• Flexible plans
• Profit sharing
• Employee
stock
ownership
plans
• Stock options
6.1
• Payroll
deductions
Beyond
the Book
55
Copyright ©2011 by Cengage Learning. All rights reserved
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?
6.1
– 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 stay
56
Copyright ©2011 by Cengage Learning. All rights reserved
Pay Raises in the
Recession
Beyond the Book
• 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.
57
Copyright ©2011 by Cengage Learning. All rights reserved
19
Chapter 11
Pay-Variability Decisions
•
•
•
•
Piecework
Commission
Profit sharing
Employee stock ownership plans
(ESOPs)
• Stock options
6.1
58
Copyright ©2011 by Cengage Learning. All rights reserved
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
59
Copyright ©2011 by Cengage Learning. All rights reserved
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
60
Copyright ©2011 by Cengage Learning. All rights reserved
20
Chapter 11
Employee Separations
Terminations
Terminations
Downsizing
Downsizing
Retirements
Retirements
Turnover
Turnover
6.2
61
Copyright ©2011 by Cengage Learning. All rights reserved
Terminating Employees
Often mismanaged
Minimize problems in firing employees
•
•
firing should not be the first option
firing should be for a good reason
•
•
©Wendell Franks/ iStockphoto.com /
© John Lund/Tiffany Schoepp/Blend Images/Jupiterimages
•
•
“employment at will”
wrongful discharge
6.2
62
Copyright ©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.
6.3
63
Copyright ©2011 by Cengage Learning. All rights reserved
21
Chapter 11
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
64
Copyright ©2011 by Cengage Learning. All rights reserved
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
65
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22
