Managing Human
Resources
EVANGEL UNIVERSITY
OVERVIEW
Welcome to the Personnel Management course. This course will provide an overview of
the importance of Human Resource Management to strategy as well as basic principles
that all managers must know.
Course Description
Learners analyze their work environment and methods of planning staffing training and
developing human resources. A survey of assessment and compensation, strategy will be
presented as well as the legal aspects of human resource management.
Required Text
Bohlander Managing Human Resources. South Western, 13th Edition
Assignment
The assignments are designed to enable you to apply text theory. Accordingly, be
prepared to share the status of your assignment with your colleagues during class time.
All assignments should be typed, professional and well written.
Grade Determination
Grades will be determined according to the following point distribution:
1.
2.
3.
4.
5.
Chapter exams (100 points each exam)
Attendance (If you miss a class, the even or the odd discussion questions for each chapter are to be
completed and all terms defined). No makeup exams or assignments for missed classes-the final
average score will replace the exam score missed. You must retake the class if you miss twice.
Term & concept final exams (200 points total)
Project (100 points)
Case 3 (page 732) , Case 7 (page 746) , Case 10 (page 752) - typed (100 points)
Grades will approximate a scale of: A = (92 – 100%)
B+ = (86 – 88.9%)
B = (82 – 85.9%)
C+ = (76 – 78.9%)
C = (72 – 75.9%)
D+ = (66 – 68.9%
D = (62 – 65.9%)
A- =(89 – 91.9%)
B- = (79 – 81.9%)
C- = (69 – 71.9%)
D- = (59 – 61.9%)
Course Objectives
The following performance objectives are provided as a focus for learning in the
Personnel Management course. You may wish to further refine or expand upon them for
personal growth or work responsibilities. These course objectives will serve as a source
for up to 90% of your short answer essay questions for each chapter exam and the final.
Chapter One – The Challenge of Human Resource Management

Be able to explain how HR practices / perspectives will vary based on what stage of the Product Life
Cycle (Introduction, Growth, Maturity, Decline) the company is in. (The answer for this question will
come mostly from class discussion)
Chapter Two – Equal Employment Opportunity



Identify and describe the major laws affecting equal employment opportunity (listed on handout)
Understand the basis for all EEO involvement and legal exceptions (on handout)
Describe affirmative action and basic steps in developing an affirmative action program (on handout)
EXAM
Chapter Three – Job Analysis


Discuss the relationship between a job analysis, job description, job specification, job design, and how
these are related to outsourcing, standardization and “ knowledge” employees
Discuss the various job characteristics that motivate employees (3 psychological states) and related
core dimensions (on handout)



Be able to explain trend analysis, Markov Analysis, and Succession Planning.
Explain the five standards and three steps to effective selection (on handout)
Explain the concept of “yield ratios” and “predictive power” of testing
Chapter Four & Five – Planning, Recruitment & Selection
EXAM
Chapter Eight - Appraisals


Explain the purposes of performance appraisals and the reasons they sometimes fail
Identify the characteristics of an effective appraisal program and how appraisal relates to the four levels
of response (reaction, knowledge, behavior, results)
Chapter Nine - Compensation

Identify the upper and lower bounds of labor scales and how they are influenced by the PLC stage, type
of industry, elasticity of demand (from class)


Discuss the basic requirements for successful implementation of merit & incentive programs
Differentiate how and when gains might be shared under the various gain sharing wage programs.

Be able to list examples of direct an indirect benefits and recommendations for their usage
Chapter Ten – Incentive Programs
Chapter Eleven – Employee Benefits
EXAM
Chapter Thirteen (Some of Twelve and Fifteen)

Discuss the role of “employment-at-will” doctrine for management & identify the 3 exceptions


Identify and explain the fundamental principles of a High Performance Work System
Be able to list and explain the relationship of high performance work systems to the four criteria of
competencies of employees that lead to competitive advantage. (page 712)
Chapter Sixteen – High Performance Work System
Project - Select one of the following (with approval to avoid duplication) – provide a disc & hard copy
1.
Select three personnel manual topics and provide the following information for each.
Topic:
Legal Guidelines:
Biblical Guidelines:
Legal Cases:
Theory X Policy Statement:
Theory Y Policy Statement:
2.
3.
4.
Sexual Harassment
(paragraph of the law)
(at least 5 Scripture that address the topic)
(Look up an actual court case and write a short case study that could be used for
discussion. Be sure to provide how the court case actually came out and why.)
(sample policy statement)
(sample policy statement)
Page 52 of the text provides an EEO audit. Improve upon the audit with additional questions and the
“suggested answers” with legal references. Give it to 5 different business managers / owners and
summarize your experience.
Select a topic (similar to those given below). Read at least 7 articles that relate to it, referencing the
articles read. Provide a statistical trend analysis of how it has changed over the past 5 to 10 years and
the reasons for the change. Do not plagiarize.
Select a “Core Process” for a company, flowchart the steps from “order to remittance”, identify the
essential functions of each step, develop an evaluation instrument to monitor the effectiveness of the
process.
Sample Research Topics
Work Place Violence
Employment Testing
Impact of TQM in America
Religious Freedoms
Employee Benefits
--OTHER---
Work force Demographics
Litigation Trends
Employee Orientation
Incentive Programs
So You Want to be a Manager ?
Jane graduated with a degree in Business from Evangel University in the early 1980's.
She worked first for an industrial fan manufacturer located in the Midwest.
During the first five years, Jane demonstrated considerable skill in working with others
and successfully completed three different projects on time. One year ago, she was
promoted to project manager. Within six months, her immediate boss, a division head,
was selected for promotion and recommended Jane to fill his position. Because of her
past successes, she got the job, and as division manager she is now in charge of a staff of
over 50 professional and technical personnel. Five of these professionals have a
facilitator role for specific contracts and the remaining staff are equally distributed over
the five projects.
Jane has a challenging week ahead of her. She has decided that this is the week for the
"rubber to meet the road" in her performance as a division manager. She has scheduled
two appraisal interviews that promise to challenge her human relation skills. The first
review is scheduled on Tuesday with Jerry Masters, a 52-year old project manager with a
Ph.D. in electrical engineering and two masters degrees in computer science and business
administration. Jane considers Jerry to be a degree collector and a poor manager. Jerry's
project has fallen far behind schedule and is headed for disaster and Jane has decided that
Jerry must be reassigned. There are no notations in Jerry's file, however, Jane's former
boss confided that he would have reassigned Jerry himself, but his head count was frozen
and he had no one readily available to replace him. Jane has no such constraints. Jane
has already interviewed a 35-year old engineer who, in her judgment, possesses all the
qualities needed to succeed where Jerry is failing.
Jane agrees with her former boss's counsel that Jerry is a valued citizen but terribly
mismatched in his job; he simply should not manage a project. Tuesday morning arrives,
and Jane decides to level with Jerry and tell him that he is not working out and that he
will be reassigned to another project, but not as a manager. When Jane informs Jerry of
his reassignment, he reacts by launching into a protracted emotional outburst accusing
Jane of violating the trust he (Jerry) had placed in her to support his efforts. Jerry
reminds Jane of his twelve years of service and the considerable influence he wields.
Storming out, Jerry informs Jane that he would be talking with the division president that
evening and would take the opportunity to detail the shoddy treatment he has received.
He also would consider filing a discrimination claim with the EEOC office.
What are the issues and the facts to be considered?
What would you do if you were Jane ?
The Challenge of Human Resources Management
Dr Dennis R Wubbena
Human resource planning
is the process
through which
organizational
goals, as put
forth in
mission statements
and business plans,
are translated
into human
resource objectives
concerning staffing
levels and flow
rates and, from
these, into an
integrated set of
personnel policies
and programs.
Human Resources must be COORDINATED with the company directional strategies
-Concentration (need focused skills), Internal growth (incentives),
Mergers & acquisitions, & “rightsizing”
Human Resources involves RECONCILIATION of Demand & Supply
-It is tougher to plan because of high tech, new competition, economic
cycles, shorter planning horizons, EMERGING strategies
“a pattern in a stream of decisions and actions.”
Human Resources deal with a constant state of LEARNING through monitoring of the
environment, assimilation of information and restructuring to
maintain consistency and flexibility within a changing environment.
Human Resource ADMINISTRATION involves proper selection, retention,
development of human resources in an environment that is safe,
equitable, non discriminating and satisfying while at the same time
cost efficient and balanced between current operations & future strategies
90 years ago Fredrick Taylor helped establish Scientific Management at a time when
industry was busy - workers were uneducated and demand was high. In the 1920’s, the
needs of workers were examined because of the Hawthorne Studies. We have
progressed through MBO and are currently engaged in the integrated, synergistic
cooperative strategies of the quality movement that includes TQM , Baldridge Award
and ISO 9000
People are our most valuable asset. They must feel secure, important, challenged, in control of their
destiny, confident in their leadership, be responsive to common goals, believe they are being treated fairly,
have easy access to authority and open lines of communication in all possible directions. . . We need to
maximize the benefits of cooperation and teamwork, fusing high technology with human talent, so that we
here in the USA and all of our subsidiary and joint venture operations will be in a position to realize our full
potential. George Willis, CEO, The Lincoln Electric Company
Vision
(Sustained)
Mission----- Resources-----Capabilities-----Core Competencies-----Value-----Competitive Advantage
Values
Human
Integrated knowledge sets
Low Cost
Ability to gain & maintain
Physical
Organizational
Empowered work teams
Differentiated
market share
A firm’s ability to compete through people depends upon its ability to manage HUMAN CAPITAL
A significant challenge is identifying and utilizing knowledge that already exists (capabilities)
Globalization
New Technology
Demographic Changes
Responding to the Market
Containing Costs
Managerial Downsizing
CHANGE
Reactive vs. Proactive
Why Change Efforts Fail…
No sense of urgency
Not creating a powerful coalition to guide the effort
Leaders do not have Vision & do not communicate a vision
Obstacles to the vision are not removed
No planning for “short term” wins
Victory is declared too quickly
Changes are not anchored in the corporate culture
High Performance Work Systems
Reengineered Work Processes
Teams are used to perform work
Employees are involved
Training is emphasized / rewarded
Pay is related to performance
Work processes are integrative
Work design allows for variety
Employees are fully informed
Managers have Paradigm shifts in their
philosophies
BALANCED SCORE CARD
Personnel/Human Resource Management Functions:
1) Planning: Human resource planning, personnel policy formulation, organizational development
* "structure without formality"
*horizontal vs vertical hierarchy
*affirmative action
*process vs. functional structure
* intranet & Self-service options
* outsourcing
2) Staffing: Recruit, interview, test, select, orientation, appraisal, promote, transfer, separate employees
*equal access for minorities
*interview questions not to ask
*illegal testing and selection bias
*appraisal that is not relevant nor reliable
*glass ceiling issues
*sexual harassment & discrimination
*internal vs external hiring
*job security (Deming)
*self directed work teams
* temp worker and working at home
3) Training & Development: On-the-job, supervisory, career development, managerial development,
succession planning
4) Salary Administration: pay policies, wage surveys, incentive/bonus plans, executive compensation
*equal pay vs comparative worth
*job specifications
*differences between
*hourly vs salary
*performance based
older/younger workers
5) Employee Benefits: Vacation, holidays, leaves, insurance, retirement, savings, profit sharing, family leave
6) Employee Services: Tuition aid, counseling, recreational, social, housing, relocation, parking, eating
"compensation value" for tax purposes, rehabilitation programs
7) Communications: Employee surveys, publications, suggestion system, community relations
participative management, handbook
8) Work Environment: Safety, health & medical services, security, plant working conditions
*legal environment (equal employment, safety & health, Compensation, Privacy, Job security
*Ethics (1) greatest good for the largest group, (2) respect for basic human rights of privacy,
due process, consent and free speech , (3) treat equitably and fairly
Honesty (vs. deception) - Humility (vs. self centered) - Contentment (vs. greed)
9) Union Relations: Dealing with organizing efforts, collective bargaining & arbitration
10) Research & Record Keeping: Affirmative Action Plans, Wage records, ADA
Functions will vary according to company differences:
Big vs Small
Centralized vs Decentralized
Capital intensive vs People intensive
Global vs Domestic trade
Private vs Public
Service vs Manufacturing
Expanding vs Decline market
High Tech vs Low Tech
Responsibilities include:
Advice & counsel, Policy formation & implementation and Employee advocacy
Competencies Needed Include:
Business Mastery
Human Relations Mastery
Change Mastery
Personal Credibility
HR wears a lot of “hats”
An Overview of Equal Employment Opportunity – Chapter 2
Dr Dennis R Wubbena
EEO Guidelines are a collection of legal and social policies that state that all
members of our society should have equal opportunity to demonstrate their merit
regardless of race, color, religion, sex, national origin (age, disability)
Basis for all EEO involvement:
JOB RELATEDNESS... with
Skill (experience, tng, ed)
Effort (degree)
Responsibility
Work Conditions
EXCEPTIONS BASED ON...
Seniority Systems
Productivity/Merit
Bona fide Occupational Need
Business Necessity
Undue hardship/safety of others
* Discrimination is ok, unless unfair [Disparate Treatment (deliberate/intentional) & Adverse Impact]
- Griggs vs Duke Power "a lack of discriminatory intent is not a sufficient defense."
-"Qualified" "Reasonable Accomodation" = Important terms to understand
-Bona fide Occupational Qualification = reasonable and necessary to the normal business operation
-Business Necessity = based on a purpose that is essential to the safe and efficient operation
-Prior to 1991, remedies were based on "make whole" concepts. In 1991, compensatory
(emotional pain, loss of enjoyment of life, etc) and punitive damages were added by Civil Rights Act
-Validation tests must show relationship to job success and accurately measure needed job specifications
-Glass ceiling (due to lack of training, networking and mentoring)
-Comparable Worth vs Equal Pay
-Four-Fifths rule (80% hire ratio of most favorable treated group to others) and Standard Deviation Rule
(1.96 std.dev./95%) are tests for disparate impact -prima facia
- OSHA enforces the “general duty clause” that calls for a safe environment
``
-“reckless disregard” is all that is needed to obtain double damages in a age discrimination
-Sexual Harassment (defined as what a reasonable person would consider sufficiently severe or
pervasive to alter the conditions of employment and create an abusive working
environment). Must be gender specific - Must be linked to subsequent unfavorable
personnel decision or result in an unsavory working atmosphere or relationship - Must
occur with either explicit or tacit approval of the employer. (two types: Quid pro quo
= tied to a reward or punishment and hostile environment = environment of work)
"voluntariness may not a defense for the employer. The crucial question is whether the sexual advances are unwelcome."
Management's response:
It is not "did they know" but "should they have known"
MANAGEMENT MUST. . .
-Act affirmatively with job relatedness in hiring, grievance, firing, promotion and pay
-Be in control: Information - Policy - Communication - Responsive
-Develop an Affirmative Action Plan (positive future action) voluntary or required
*Utilization Analysis = % employed in the company compared to the available labor supply
*Problem Identification with goals and timetables
*Corrective Actions = plans to achieve employment parity
BOTTOM LINE = if adverse impact is present, then success prediction criteria MUST BE PRESENT
www.fairmeasures.com
EEO Legislation
1963, Equal Pay Act: Equal pay for equal work regardless of gender
1964, Title VII, Civil Rights Act: Members of a protected class must be employed without being subjected to unfair discrimination
(race, color, religion, sex, national origin)
1967, Age Discrimination Act: Can not force retirement (except for Executives in policy making positions unless it is
for reasons related to Business Necessity. Age 40 is the discriminatory age.
1973, Vocational Rehabilitation Act: Businesses can not discriminate against the handicapped (physical and mental)
* those with visible limiting impairment
* those with a record of past impairment * those for whom you regard as impaired
1978, Pregnancy Discrimination Act: Treat as medical issue, no mandatory leave time, protected reinstatement rights
1991, Civil rights Act: Creates a friendly legal environment for job applicants and employees who believe their rights
have been violated. Also extends EEO laws to US Multinational Corporations overseas unless following them
would violate foreign laws. (Foreign businesses in US are subject to EEO laws). Adds compensatory and punitive damages
1990, American with Disabilities Act (ADA): Extension of 1973, Rehabilitation Act - requires federal contractors to take affirmative action
*Must remove architectural and communication barriers
*Must identify ESSENTIAL JOB FUNCTIONS
*Medical information must be confidential (in file other than personnel file)
*Includes epilepsy, contagious disease, hearing & visual impairment, diabetes, mental, back, etc
Is all discrimination unfair ?
What would a multi-million dollar settlement do to the cash flow of a
business ?
Would mens vs womens basketball be equal pay or comparable worth
issue ?
Home Depot was accused of gender related disparate impact - how would you react ?
Birminghams fire department was required to give blacks preferential treatment by President Carter and
later were told they were guilty of reverse discrimination by President Reagan
An oil company worker abused drugs and was hospitalized a number of times for paranoid schizophrenia.
He was released from the hospital each time with no restrictions on returning to work. The employee
occasionally failed to take his medication and skipped meetings with his treating psychologist. The
employee's wife later testified that she was assured by the employee's supervisor that she would be advised
if termination was imminent. The company fired the employee for poor performance without any warning
and the employee committed suicide within two weeks. His wife sued the employer for $700,000 in a
Texas trial court under the Texas Wrongful Death Statute, claiming negligent and wrongful discharge,
intentional and negligent infliction of emotional distress and gross negligence. A jury returned a verdict
.......(what do you think it was ?
(August 1994) Douglas Galegos, EEOC's acting chairman, proposed that all previous civil rights
legislation be applied to a new offense called, "religious harassment." Should his proposal be implemented,
the following could be prohibited by the EEOC should anyone object in any way: Wearing a cross around
the neck; Displaying a picture of Christ on an office desk; Wearing a T-shirt with a religious emblem or
phrasing on its face; having a Bible visible in the room; praying at a company banquet or event; Sharing
your faith with another employee; Humming a religious song while at a copy machine; Giving a fellow
employee a religious card at Christmas. You might say that you would do it anyway !! However, if the
EEOC guidelines become law, American businessess will submit the new requirements to their attorneys,
who will advise them to eliminate every possible expression of faith from the workplace to prevent a
disgruntled employee from suing his company with the aid of the government (they would pay employee
attorney fees). How strong would your faith be then ???
Should a homosexual obtain “protected class” status ?
Joan applied for a job a clerk typist in a small manufacturing firm. She did not complete several parts of the
application form, and demanded to speak to the personnel manager. In talking with him, she particularly protested
answering the following:
1) Do you rent or own your own home ?
2) Have you ever changed your name ? If so, from what ?
3) Are you married
4) What are the ages of your children, if any?
5) What is your height ? What is your weight ?
The personnel manager said that it was company policy that all blanks on the application be filled if the person is to be
considered for employment.
For each of the items, provide a rationale for the company to justify asking the question.
Rent/own is suspect as more minorities rent than majorities. Yet if the firm researches the issue and
finds that turnover is significantly related to this characteristic, it can be defended in court.
Married status question is probably illegal since the Supreme Court has held against companies refusing
to hire married women
Ages of children question is also probably illegal. particularly if the same question is not asked of men.
One can only ask if the applicant can meet particular company requirements in attendance, travel, etc
Height and weight questions can have a disparate effect on females and some ethnic groups. Proof
must be provided showing the requirement to be job related
Suggestions from attorney Lynn Outwater - Pittsburgh, Penn
1)
2)
3)
4)
5)
All hiring procedures should be standardized
Have a policy on unsolicited resumes
Keep applications on active status for a limited time
Place any harsh statements about the company's legal rights on the application from
Determine and document essential job functions
Mary Ellen has recently been promoted to the position of Personnel Manager for a medium-sized company
that has an energetic affirmative action program. She receives a call from the parole officer of Luke
Pearson. Mary Ellen recalls that Luke was hired several months earlier as a mail clerk. The parole officer
tells Mary that he is following up with her because Luke has not consistently reported in to him. The parole
officer goes on to say that Luke had been in prison for homicide and had served his time to the satisfaction
of the parole board. However, the officer is more than a little concerned because Luke has a history of
brutally assaulting people that he has met while at work. Mary Ellen is surprised by the call; she does not
recall anything about Luke's criminal record on the application. After hanging up, Mary Ellen retrieves
Luke's file. After some digging, she finds out that he has listed a judge, a psychologist, and a teacher as
references. His most recent past employer is Brockport Industries, a rehabilitation program at the state
prison. Luke has served seven years, but he did not answer the questions about prior arrests or convictions
on the job application. Mary is upset that proper follow-up procedures had not taken place concerning this
application; however, even if these things had been disserved prior to offering Luke the position, it is
possible that he still would have been offered the job. One the other hand, Mary shudders to think of her
friends at work being harmed. What would you do ?
1994 = South Dakota employer wrote a note to employees to help them after a layoff time and said,
"discharges heretofore will be for good reason." Courts interpreted this statement as "good cause" and the
employer lost his employment at will position with all employee termination’s.
(This was tested when he later tried to terminate an employee)
Job Analysis
the building block of everything that HR does – Chapter 3
Dr Dennis R Wubbena
Planning
Performance Appraisal
Recruitment & Selection
Training & Development
Compensation
Discipline & Communication
Work Environment
Self-Managed Teams
Virtual Team
Compressed Work Week
Flextime
Job Sharing
Telecommuting
INPUTS
WORK PROCESS
OUTPUTS
Organizational structure refers to the relatively stable and formal network of
vertical and horizontal interconnections among jobs that constitute the
organization. Workflow design provides a longitudinal overview of this dynamic
relationship by which inputs are converted into outputs
TASK -----DUTY----POSITION-----JOB-----OCCUPATION-----CAREER
(Task = Unit of Work)
(Position = Group of Duties) (Job = Group of Positions)
Family)
(Career = Job
A JOB ANSLYSIS is a systematic (planned) process of collection, analysis and classification of
valid (accurate) information about clustered work tasks (position).
Job Description = tasks, duties and responsibilities (Content and Criterion of work requirements)
Job Specification = knowledge, skills, abilities (Minimum personal attributes needed)
People have different aptitudes; different positions require different aptitudes; the
best fit is when the aptitude of a person fits the position requirements.



Functional Structure needs high efficiency which is maximized by breaking jobs down into
small, simple components that are executed repetitively by low-skilled workers. Functional
clusters of similar work units helps reduce redundancy of support services. This structure
works best in a stable competitive environment.. INVOLVES 3 FUNCTIONS = DATA,
PEOPLE, THINGS (Dictionary of Occupational Titles)
Position Analysis Questionnaire (PAQ) 194 job elements evaluated EVALUATES
Information Input
Mental Process
Extent of use Amount of time
Work Output
Job Context
Importance
Applicability
Relationship with Others
Probability of Occurrence
Biggest Asset = linked to GATB (General Aptitude Test Battery) for selection
Biggest Liability = too difficult to use / understand / apply
Critical Incident Technique
JOB DESIGN APPROACHES: (4 considerations: Job objectives, engineering considerations,
ergonomics and satisfaction)
(1) Motivational Approach = JOB ENHANCEMENT (adding additional tasks at same or different level)
Job Enlargement = horizontal loading =Herzberg "adding zero to zero" (cross tng)
Job Rotation = horizontal loading = Herzberg "substitute zero for zero"
Job Enrichment = creating a job that is vertically loaded with high intrinsic factors
and acceptable extrinsic factors
*EXTRINSIC FACTORS: pay, policy, supervision, etc ( dissatisfaction or neutral)
*INTRINSIC FACTORS: motivational factors (3 psychological states of all jobs)
-Meaningfulness of work
= variety, task identity(see end), task significance
-Responsibility of work outcomes
= task autonomy (Core Dimensions of Job Enrichment
-Knowledge of work results
= feedback
& Job Characteristics Model)
(2) Mechanistic Approach = (SCIENTIFIC MANAGEMENT) Rooted in classical industrial engineering where
the simplest way to structure maximizes efficiency through task specialization, skill simplification, repetition and
easily replaceable workers.
(3) Biological Approach = Physical (ergonomics)
Planning - Recruitment - Selection – Chapter 4 & 5
Dr Dennis R Wubbena
“You need a process to identify the right experiences people will need to move ahead, for without the
proper personnel, growth is restricted and product pricing will become non-competitive.
DO YOU BELIEVE “Downsizing is a reflection of poor HR integration with Strategy.”
-$225 billion a year in lost productivity comes from illiteracy
-J.C. Penney saved $6 million dollars in salaries through reduced turnover attributed to better hiring decisions
-Negligent hiring suits cost one company an $800,000 settlement when one employee raped another
- 60% of women in workforce are self supporting / 80% of all mothers with school age kids work out side the home
-Mirage Resorts processed 75,000 applicants electronically to hire 9,600 workers - in 5 months
-Paylesss Shoes = inventory shrinkage dropped from 20% to 1% after implementing honest testing of applicants
EFFECTIVE PLANNING:
(4)
Matching to Strategy (unique skills / low value) = alliance & partnerships (unique skills / high value) = core knowledge
workers
(generic skills / low value) = contract labor (generic skills / high value) = traditional job based employees
(5) “EXTERNAL FIT for flexibility and creative agility = Coordination Flexibility (rapid allocation) Resource Flexibility
(flexible workforce through cross training, teams, etc) and INTERNAL FIT with aligned Job Design,
staffing, training, appraisals, compensation, etc.
(3) Environmental Scanning (Economic, competitive, technology, political/legal, social, demographic)
Human resource planning
KEYS to effective utilization
helps to assure
Must have a clear picture of current configuration of personnel. Must be able
that organizations
to forecast supply & demand based on leading indicators (objective measures) and
are neither overenvironmental changes(retirements, promotions, transfers, turnover, overtime, etc).
nor understaffed,
that the right employees
DEMAND FORECASTING (Quantitative & Qualitative)
are placed in
-- TREND ANALYSIS (Select factor like “sales” / relate to #
the right jobs at
employees and plot ratio for past 4-5 years / use to
the right time,
project future need)
that organization
---DELPHI TECHNIQUE = qualitative forecast
and
environmental change
SUPPLY FORECASTING (Quantitative & Qualitative)
is anticipated
---MARKOV ANALYSIS (page 134) Excellent Tool
and adjusted to with a
---SKILL INVENTORY Excellent Tool
minimum of cost,
---SUCCESSION PLANNING (page 135) Excellent Tool
and that
there is direction
EXAMPLE is with Japan’s Matsushita Corp - dealing with yen value
and coherence
-- identifies where employees come from and go to
to personnel
--helps plan for downsizing and/or expansion
activities.
--identifies where short term transfers can be completed
INTERNAL RECRUITMENT: Known ability & skills - Higher morale & less tng. - Better fit, faster, cheaper
Good reward for loyal service - NEPOTISM CONCERNS
EXTERNAL RECRUITMENT: Less Ripple Effect - New ideas & innovation (proprietary knowledge) - Better for EEOC
YIELD RATIOS Need 10 (so offer to 50); Offer to 50 (so interview 100); Interview 100 (so screen 600); Want 600
applicants (so wide promotion). Toyota tested 14 hours for each applicant and picked 3,000 from 90,000.
SEARCH SOURCES: Newspaper, Referrals, Temp Agency, Leasing, Employment Agencies (private & public)
As a result of the Civil rights Act and interpreting court decisions, the application blank is slowly undergoing transformation. It is
risky ask for a photograph, religious affiliation, color, sex, or ancestry without a bona fide occupational reason. Many q uestions are
“INAPPROPRIATE”
1) You can ask if the applicant has a legal right to work in the US, but careful with naturalized or native citizen
2) You can ask if the applicant is over 18 years of age, but be careful on age sensitive questions
3) You can ask for the applicant's place of residence, but be careful about one's birthplace
4) You can ask what languages the applicant speaks and writes, but be careful about how this ability was obtained
5) You can ask for educational background, but be careful about asking for the religious affiliation of the school or dates
6) You can ask if the applicant has ever been convicted of a crime that is related to the job, but be careful about arrests
7) You can ask if the applicant has any physical or mental impairment that would interfere with job performance, but
be careful about asking for a listing of all disabilities or treatments for diseases.
SELECTION standards (1) Reliability of the instrument (2) Validity (3) Generalizability for different
situations, people and time (important when you can not create tests yourself) (4) utility and (5) legality
1)
starts with an undifferentiated pool of pre-screened applicants
- MULTIPLE HURDLES (several steps & reject if fail one)
-MULTIPLE CUTOFF (minimum in all attribute areas)
--COMPENSATORY MODEL (one area makes up for another)
-Selectivity Ratios = measurement of applicant quality (# applied / # hired)
Group Applicant Pool
Pass Application Blank
Pass Employment Test
Pass Interview
Hired
Majority
200
50 (25%)
40 (80%)
20 (50%)
15(75%)
Minority
50
13 (26%)
5 (38%)
5 (100%)
5(100%)
2) gathers information from:
-Application Blanks (Can be weighted for concurrent/predictive validity)
-Concern for accuracy (30% - 50% have at least 1 fabrication)
-References ("negligent hiring" vs "defamation of character")
--very unreliable (Quicken asks for 5 to 9 references)
-biographical information (historical data) = information more valid and easy to check
-Interviews
STRUCTURED or NONDIRECTED or SITUATIONAL (hypothetical) or
BEHAVIORAL (actual past occurrences) or PANEL or COMPUTER
1) Think about an instance when you had to motivate an employee to perform a task that he/she disliked
but that you needed to have done. How did you handle the situation ?
2) Imagine that you and a co-worker disagree about the best way to handle an absenteeism problem with
another member of your team. How would you resolve that situation?
3) Suppose you had an idea for change in work procedures that would enhance quality, but some member
of your team were hesitant to make the change. What would you do in that situation?
(Page 204 = interesting observations) -Overemphasis of one impression (halo effect / first impressions)
Courts Like:
-similarity error (applicant has similar quality/attribute)
-Pre tested data forms
-contrast error (compare to last applicant)
-multiple techniques
-general evaluation set (central/leniency/severity errors)
-multiple assessors
-inter & intra rater reliability issues
-Testing (Validity, adverse impact and invasion of privacy are concerns)
-Integrity (lie detectors, credit, honesty ) - Employment Tests = achievement, aptitude
-Physical ability & medical & Graphology - Cognitive Testing (intelligence) & Personality ( temperment)
-Work Sample tests (in basket) job specific with good criterion
and content validity and low generalization (GOOD = realistic job preview)
3) differentiate applicants
-FIRST, We must UNDERSTAND what we are trying to do
A)Measure a construct/concept = "successful employee" (theoretical construct/trait)
B)With valid statistical analysis = (basis of discrimination-job related)
*Significance level for EEOC is .05 / sample is usually 100 - 150
*Correlation coefficient = correspondence (direction & magnitude)
between attribute (predictor) and performance (criterion)
(Concurrent validity and Predictive validity)
(Concurrent analysis = narrows range and less differentiating
C)Through instruments with content validity that have been Cross Validated
*Criterion is empirical and Content is expert opinion
*Reliable -Internal consistency (Split half)-Test-retest (coefficient of
stability)- Parallel tests (coefficient of equivalence)
-SECOND, We must determine if the differentiation information is useful
(4) False Negative .
(8) True Positive
(Predictive Power) Performance of employee =>
MISS
HIT
(6) True Negative .
(2) False Positive
With Test (8 of 10 positive)
(70% = HIT)
HIT
MISS
(80% worked out with opportunity costs = was it worth it ?)
Estimate is that 90% of these could be
Could have gotten a 60% with no test (12 of 20 worked out)
avoided with reference checks
Appraising and Improving Performance– Chapter 8
Describe the feelings you have when you go through an evaluation ?
Should appraisals be given at the same time as salary reviews ?
What does this mean = “Behavior follows Measurement”
Why do you think Deming said performance evaluations are a deadly disease ?
FOUR LEVELS OF EVALUATION
Results Is the organization or unit better because of the
efforts of this individual (Quality, Costs, Profits, ROI)
Behavior
Is performance / behavior productive, improved
Cognitive Knowledge
To what extent is there greater knowledge / skill
Reaction
Response in attitude, feelings, opinions
PERFORMANCE APPRAISAL is an assessment of employee contribution to the organization during a
specific period. Performance Management involves important task identification prior to appraisal and
meaningful feedback after. Management often consider poor performance a product of employee ability
and motivation while employees think it is an environmental issue.
Two main purposes of Appraisal: (1) ADMINISTRATIVE (2) DEVELOPMENTAL
FOUR OBJECTIVES OF APPRAISALS: (1) Employees have opportunity to discuss issues with
management (2) Provides a measurement of standards / behavior (3) Format to recommend
improvements (4) Basis for salary recommendations
Appraisals Should Be: Relevant (appropriate), Reliable (consistent), Valid (not deficient nor contaminated)
-be valid (leniency/strictness/central tendency/ /recency/contrast/similarity)
-have inter and intra rater reliability
-be based on first hand knowledge by supervisor with employee responsibility clear
-be discussed openly with an appeal process
- collected under standardized conditions with trained raters
-be frequent, easy, beneficial & highly accepted, measure units that are measurable, with
written expectations and a result that culminates in specific goals
Performance Appraisal Approaches
:
TRAIT BASED (least acceptable in courts) "What worker is, not what worker does."
Graphic Rating Scale = To evaluate each trait with a scale (most often used)
poor 1 2 3 4 5 exceptional
Mixed Standard Scale = random sequencing of trait statements and scored as “better,”
“same,” or “worse” than the statement
Forced Choice = Selection between two statements
BEHAVIORAL BASED "What worker does." Good for developmental feedback
Critical Incident (good and bad events) useful in developing specifications
Behavioral Anchored Rating Scale (BARS) - Critical incident development of job
behaviors per job dimension (performance aspects not generalizable to other jobs)
Behavioral Observation Scale (BOS) - supervisor records the frequency each behavior is observed
RESULTS BASED (production, sales and performance) MBO
Other: Straight Ranking-Paired Comparison -Forced Distribution-Alternative Ranking, Weighted Check sheet
360 degree evaluations (Supervisor, Self, Subordinate, Peer, Team, Customer)
Do
Don't
Ask specific questions aimed at problems or behavior
Be firm and tell the person exactly what you want stopped
Be open-minded and listen to what they say
Remember, open discussion is the primary purpose of an appraisal
Ask them why they did something
Use generalities to "prove" your point
Try to justify your pre-set appraisal decision
Prohibit a dialogue
Appraisal Interviews:
TELL AND SELL (persuade employee to change)
TELL AND LISTEN (review points then they share feelings)
PROBLEM SOLVING (seeks to stimulate discussion)
Managing Compensation - Linking compensation to objectives– Chapter 9
Lag - Meet - Lead Philosophy
Two - Tier Compensation
Delayering / Broadbanding
Secrecy Issues
Escalator Clauses
Equal Pay/Comparative Worth
Skill Based Pay (knowledge)
Pay Compression - compa ratio (average pay / midpoint)
MOST IMPORTANT :
Job Security 30% - Job Satisfaction 24% - Money/Salary 22% - Work Quality 17% - Promotion 5%
What are the issues related to ...an increase in minimum wage ? ...international business ?
A. Fair Labor Standards Covers employees in interstate commerce (retail/service
workers if business has revenue of at least $250,000)
Minimum wage started at 25 cents in 1938
Generally,Children < 14 are not to be employed
Children 14-15 must work outside school hours, not more than 3 hours per
school day or 8 hours per non school day, not more than 18 hours per
school week, home early in evening in non hazardous occupations
Children 16-17 can not work in hazardous occupations
B. Equal Pay Act of 1963 & 1972 Amendment:
Equal pay for equal work regardless of gender
Executive, Administrative, Professional employees are exempt
Pay Administration


Critics = Job Based may not reward skills
Agreement on Job Evaluation Compensatory Factors
Factor Comparisons: Skill, Effort, Responsibility, Work Conditions
Point (Hay) System (Comparison of job requirements against degree descriptors)
Know How: Knowledge, Managerial Know How, Human Relations
Problem Solving: (% of Know How) Environment, Thinking Challenge
Accountability: Freedom to Act, Impact, Dollar Magnitude
 Assess benchmark positions to establish point ranges, grades and wages
1. Product Market Assessment (upper bound of labor scales)
 more restrictive if demand is elastic; supply of labor is inelastic; if labor costs are a larger
share of total costs; and if employee skills are specific to product market
 Compensation / productivity / exchange rates / level of labor skill available impact this element
2. Labor Market Assessment ( lower bound of labor scales)

more restrictive if selection costs are high and/or supply is limited
 wage surveys on key jobs are helpful (local vs. National vs. Regional)
Efficiency Wage Theory = If you pay more, employees will work harder to keep the job
Marginal Revenue Productivity Theory = employer willing to hire as long as costs = value
-Often, the demand for labor is derived from the demand for products
-Elasticity of product demand impacts ability to give pay raises
-Business cycle impacts compensation (Growth=incentives;Mature=base + benefits)
Exchange Value = worker willingness to trade labor for pay
-Equity Theory = To look to another and compare output to input
PAY LEVEL External equity (Similar jobs in comparable organizations) Wage & Salary Survey on
key (stable) jobs with local and/or national review and goals to lead, match, lag market
JOB STRUCTURE Internal equity (Dissimilar jobs in same organization) Ranking and Paired
Comparisons, Job Grades , Factor Comparisons using an anchor to relate to, Point Method (most common)
Individual equity (May also include Procedural Equity) Within pay grades with
sensitivity to Seniority, Merit Pay , Wage Compression, and Comparable Worth
-Expectancy Theory = Expectancy (job design) / Instrumentality (link) / Valence (value). “Can the employee see that
there is a link between what they do and the reward. Example: Profit sharing does not have a good link between
what they do and an increase in shared profit. Hard to see link.
-Agency Theory = Divergent interests of stakeholders. Between shareholder and managers and between managers and
employees. (Safe Forecasting)
Incentive Rewards & Benefits Chapters 10 & 11
Goal is to Motivate Employee:
To Join, To Stay, To Perform

Saturn = 4 to 1 vote to accept (12% less base pay + 12% at Risk + Bonus Component) 1995 and 96
they earned $10,000 more, 1997 $4000 less, 1998 there was a 2 to 1 vote to keep the plan with lower
quotas.
 Iowa seed corn company established a dealer network that did not work…
 Do you find it interesting that “domestic partners” does not include blood relatives ?
TWO KINDS OF RECOGNITION PAY
(1) Behavior Based
Merit = “not really true” - based on evaluations (could be inflated) - base pay increase / often political
Incentive = one time - must earn again basis. Can work against team work - perpetuates a
“no pay / no work” attitude. - difficult if output is hard to measure.
--offers a variable expense approach vs. Fixed cost approach
--successful if linked to valued behavior, if fair, if goals are challenging but attainable, if pay
formula is simple and understandable and if management is willing to discriminate
Research study that shows high performers do not tie $ to performance
(1) Outcome Based (Increases Agent’s risk)
Commission / Stock Options / Gain Sharing / Bonus / Profit Sharing / ESOPs
Incentives
INDIVIDUAL
Piecework (straight and differentiated)
Standard hour plan (mechanics & paneling)
Bonuses (extra beyond pay)
Merit (base increase vs. Lump sum)
Sales Incentive (salary, commission, combined)
Maturity Curve
Executive Compensation
GROUP
Team (Task, cross functional, self directed)
ENTERPRISE
Profit Sharing - Stock Options - ESOPs
Gainsharing
--Rucker (transition plan) = production increase
--Scalen = labor cost savings
--Improshare = reduction of time needed
--Earnings at Risk
FUNDAMENTAL CONDITIONS OF SUCCESS
(1)
(2)
(3)
(4)
(5)
(6)
(7)
Efficient staffing levels Employee job congruence - Right Person
Appropriate labor rate, product demand, productivity gains - Right Balance
Incentives and structure - Right Base
System must be fair- Right Management Motives
Cooperation and Trust - Right Employee Motives
Management must have the Right Philosophy
- Limitless potential of employee performance - Employees are first class (high performance)
- High incentive wages are a bargain
- Everyone wins
- Cooperative efforts are better than competitive (Internally)
(8) Right Rules that are clear to everyone involved
--They must be communicated - understood - attainable - measurable
RISE OF BENEFITS: (1) New laws after the Depression (2) Industrial Revolution added some to
attract workers in short supply (3) Benefits gained tax value (4) Economy of Scale in that the company
could offer them cheaper than individuals could buy them (5)Organized labor fought for them (6) It was a
way to differentiate from other companies
DO YOU THINK THAT EMPLOYEES SHOULD BE PAID “HOLIDAY PAY” WHEN THE HOLIDAY FALLS ON A DAY
THEY ARE NOT NORMALLY OPEN ?
DO YOU THINK EMPLOYEES SHOULD BE PAID FOR UNUSED SICK PAY?
DOES THE LAW REQUIRE WORK BREAKS?
WHAT PERCENTAGE OF PAYROLL IS THE COST OF BENEFITS?
IS “SOCIAL SECURITY” A “BUSINESS EXPENSE” OR AN “EMPLOYEE EXPENSE”
INDIRECT:
Protection Programs
Paid Time Off
Services
Opportunity Costs
DIRECT
Medical, Dental, Life (50,000), Disability, Pension, S.S,
Income Replacement, Workers Comp, Unemployment
Extended Care
Vacations, Holidays, Sick, Jury Duty, Floating Days, Breaks
Recreational, Wellness, Car, Meals, Day Care, Tuition Asst.
Unpaid Leaves
Base Pay
Salary vs. Wage
Merit Pay
Based on Performance
Incentive Pay
Bonus, Commission, Piece Work
Deferred Pay
Savings, Annuity, Stock Purchase, 401(k)
------------------------------------------------------------------------------------------------------
Benefit Administration is a Dynamic process because . . .
* Individual Values Change Over Time
* Supply & Demand
* Regulations are Constantly Changing
* Geographical Cost of Living
* Expectations Rise
* Monetary income vs Real income
-----------------------------------------------------------------------------------------------------DO YOU KNOW WHAT BENEFITS ARE REQUIRED BY LAW ?
-
TERMS:
Non-contributory
Stop loss
COBRA
Adverse selection
Tax deferred
Disability
Cafeteria Plan
Contributory negligence
deducible
Co-insurance
pre-existing
Vesting
Garnishments
EAP
Cost containment
Defined benefit vs. Contribution
Do You Agree That Most Employees Do Not Understand The Cost of Benefits