Chapter Eleven Human Resource Management Chapter Objectives • Explain what human resource management involves. • Define the term human capital and identify at least four of Pfeffer’s people-centered practices. • Identify and briefly explain the seven steps in the PROCEED model of employee selection. • Distinguish among equal employment opportunity, affirmative action, and managing diversity. • Explain how managers can be more effective interviewers. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 2 Chapter Objectives (cont’d) • Discuss how performance appraisals can be made legally defensible. • Compare and contrast the ingredients of good training programs for both skill and factual learning. • Specify the essential components of an organization’s policies for dealing with sexual harassment, and alcohol and drug abuse. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 3 Human Resource Strategy: A People-Centered Approach • Human Resource Management (HRM) – The proactive acquisition, retention, and development of human resources necessary for organizational success – Moved from a support staff function (personnel) to a more strategic role in organizations • Human Capital – All present and future workforce participants who need to develop to their full potential as valuable assets to organizations Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 4 Figure 11.1: A General Model for Human Resource Management Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 5 Human Resource Strategy: A People-Centered Approach (cont’d) • People-centered organizations enjoy a competitive advantage because of peoplecentered practices: • • • • • • • Protection of job security Rigorous hiring process Employee empowerment Compensation linked to performance Comprehensive training Reduction of status differences Sharing of key information Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 6 Human Resource Strategy: A People-Centered Approach (cont’d) • Recruitment and Selection – “Getting the right people on the bus” – Recruiting for diversity • To generate through many different sources a pool of qualified applicants who are demographically representative of the population at large – Networking appears to be the most successful jobhunting method. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 7 Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 8 The Selection Process: An Overview • Steps in the PROCEED model – – – – – – – Prepare Review Organize Conduct Evaluate Exchange Decide Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 9 Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 10 Job Analysis and Description • Job Analysis – The process of identifying basic task and skill requirements for a specific job by studying superior performers • Job Description – A concise document that outlines the role expectations and skill requirements for a specific job Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 11 Equal Employment Opportunity (EEO) • EEO and Title VII of the Civil Rights Act of 1964 – In virtually all aspects of employment, it is unlawful to discriminate on the basis of race, color, sex, religion, age, national origin, disability, or veteran status. – Selection and all other personnel decisions must be made solely on the basis of objective (job-related) criteria such as the ability to perform or seniority. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 12 Affirmative Action Program (AAP) • A plan for actively seeking out, employing, and developing the talents of those groups traditionally discriminated against in employment – Active recruitment of women and minorities – Elimination of prejudicial questions on employment application forms – Establishment of specific goals and timetables for minority hiring – Statistical validation of employment testing procedures Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 13 Affirmative Action Program (AAP) (cont’d) • From Affirmative Action to Managing Diversity – The objective is to develop an appreciation of interpersonal differences and to create a dominant heterogeneous culture. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 14 Americans with Disabilities Act (ADA) • Accommodating the Needs of People with Disabilities – Americans with Disabilities Act of 1990 (ADA) • Requires employers to make reasonable accommodations to the needs of present and future employees with physical and mental disabilities • ADA Policy Guidelines for Employers – Audit the workplace to eliminate barriers and bias. – Train all managers in ADA compliance and all employees to be sensitive to others with disabilities. – Do not hire anyone who cannot safely perform the basic duties of a particular job with reasonable accommodation. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 15 Recruitment and Selection • Employment Selection Tests – Any procedures used in the employment decision process such as: • • • • • Pencil-and-paper tests Unscored application forms Informal and formal interviews Performance tests Physical, education, or experience requirements – Must be unbiased, statistically valid, and reliable predictors of job success Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 16 Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 17 Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 18 Effective Interviewing • Interviews are the most common selection tool. • Shortcomings of unstructured interviews: – – – – – – – – Highly susceptible to distortion and bias Highly susceptible to legal attack Legally indefensible if contested Apparent but no real validity Not totally job-related and possibly invasive of privacy Highly inconsistent in application as selection tool Subject to interviewer bias (e.g., cultural bias) No feedback about selection errors Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 19 Effective Interviewing (cont’d) • Structured interviews: A set of job-related questions with standardized answers • Question types used in structured interviews: – – – – Situational Job knowledge Job sample simulation Worker requirements • Behavioral interviewing: Asking candidates detailed questions about specific behaviors in past job-related situations Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 20 Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 21 Performance Appraisal • Performance Appraisal – Evaluating individual job performance as a basis for making objective personnel decisions • Making Performance Appraisals Legally Defensible – Use job analysis to develop the appraisal system. – Check that the appraisal system is behavior-oriented, not trait-oriented. – Have evaluators follow specific written instructions when conducting appraisals. – Have evaluators review results with the ratees. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 22 Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 23 Performance Appraisal (cont’d) • Alternative Performance Appraisal Techniques – – – – Goal setting (MBO) Written essays Critical incidents Graphic rating scales • Behaviorally anchored rating scales (BARS) – – – – Weighted checklists Rankings and comparisons Multirater appraisals 360-degree review Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 24 Training • Training – Using guided experience to change employee behavior/attitudes – Training facts • 51.4 billion dollars were spent on employee training in 2004. • By 2015, employers will face a critical shortage of skilled (“knowledge”) workers. • The bulk of training is low-tech, not computer-based. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 25 Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 26 The Ingredients of a Good Training Program – Maximize similarity between the training and the job. – Provide as much experience as possible. – Provide a variety of examples. – Label or identify important task features. – Make sure general principles are understood. – Reward trained behaviors and ideas. – Design training content for obvious applicability. – Use questions to guide trainee’s attention. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 27 Skill Versus Factual Learning • Effective skill learning ingredients – – – – Goal setting Modeling Practice Feedback • Effective factual learning sequence – – – – Goal setting Meaningful presentation of materials Practice Feedback Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 28 Discouraging Sexual Harassment • Sexual harassment: Unwanted attention that creates an offensive or intimidating work environment – Unwanted physical contact – Gestures, displays, joking, and language • It is the manager’s job to be aware of and to correct cases of harassment. • Ignorance of such activity is not a valid legal defense. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 29 Discouraging Sexual Harassment (cont’d) • What can the victim do? – – – – – Live with it Fight back Complain to higher-ups Find another job Sue the employer • Victims win their suits when harassment is severe, witnesses are present, supporting documentation exists, and management is notified but fails to take action. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 30 Discouraging Sexual Harassment (cont’d) • What can the organization do? – Practice prevention and remediation • Garner top-management commitment to eliminate sexual harassment. • Issue a clear sexual harassment policy statement. • Provide appropriate awareness training. • Establish a grievance procedure for reporting incidents of harassment. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 31 Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 32 Controlling Drug and Alcohol Abuse • Alcoholism: A disease in which alcohol disrupts one’s normal life • Drug abuse costs employers $100 billion each year. • The Legal Side of Workplace Substance Abuse – Recovering drug addicts and alcoholics are covered by the Vocational Rehabilitation Act of 1973. – Employers with federal contracts exceeding $25,000 must comply with the Federal Drug-Free Workplace Act of 1988. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 33 Controlling Drug and Alcohol Abuse (cont’d) • Referral and Rehabilitation – How to assist an abusing employee • Don’t accuse the employee; offer help after the employee selfadmits the problem. • Don’t “play doctor.” • Refer the employee to an employee assistance program (EAP) or community resources for rehabilitation. Copyright © Houghton Mifflin Company. All rights reserved. Chapter Eleven | 34 Terms to Understand • Human resource management/development • Human capital • Job analysis • Job description • Affirmative Action Program (AAP) • Employment selection test • Structured interview Copyright © Houghton Mifflin Company. All rights reserved. • Behavior-based interview • Performance appraisal • Behaviorally Anchored Rating Scales (BARS) • 306-degree review • Training • Sexual harassment • Alcoholism Chapter Eleven | 35