Chapter 11 Managing Human Resource Systems

(1)

1

Chapter 11 Managing Human Resource

Systems

Designed & Prepared by

B-books, Ltd.

MGMT3

Chuck Williams

2 The Human Resource Management

Process

Recruiting

Selection

Attracting Qualified

Employees

Compensation

Employee Separation

Keeping Qualified

Employees

Developing Qualified

Employees

Training

Performance Appraisal

3 Employment Laws

After reading this section,

you should be able to:

1. explain how different employment laws affect

human resource practice.

(2)

4 Human Resource Planning

Supply and Demand

of

Human Resources

Supply and Demand

of

Human Resources

Human Resource

Information

Systems

Human Resource

Information

Systems

Beyond the Book

5 Forecasting Demand and Supply

•Internal forecasts

•External forecasts

•Internal forecasts

•External forecasts

•Direct managerial input

•Best guess

•Statistical / historical

ratios

•Direct managerial input

•Best guess

•Statistical / historical

ratios

Work Force

Forecasting

Methods

Beyond the Book

Forecasting Demand and Supply

Internal

Factors

Internal

Factors

_Force

Work

Forecast

Work

Force

Forecast

External

Factors

External

Factors

(3)

7 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

Beyond the Book

8 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

Beyond the Book

9 Forecast Methods

Direct

Managerial

Input

Direct

Managerial

Input

Best

Guess

Best

Guess

Statistical/

Historical Ratios

Statistical/

Historical Ratios

Based on projections of cash flows,

expenses, or financial measures

Based on projections of cash flows,

expenses, or financial measures

Based on managers’ assessment of

current head count plus a guess on

relevant internal/external factors

Based on managers’ assessment of

current head count plus a guess on

relevant internal/external factors

Based on statistical methods, such as

multiple regression, in combination

with historical data

Based on statistical methods, such as

multiple regression, in combination

with historical data

(4)

10 Human Resource

Information Systems

• Computerized employee

information systems use:

• transaction processing

• employee self-service

• decision support

Beyond the Book

11 Human Resource

Information Systems

HRIS

Work History

Performance

Appraisal

Performance

Appraisal

Personal Data

Educational

Data

Educational

Data

Company

Employment

History

Company

Employment

History

Promotion Data

Beyond the Book

12 Employment Legislation

Federal

Employment

Laws

Adverse Impact

and

Employment

Discrimination

Sexual

Harassment

Laws

1

(5)

13 Federal Employment Laws

Equal Pay Act of 1963

Civil Rights Act of 1964

Age Discrimination in

Employment Act of 1967

Age Discrimination in

Employment Act of 1967

Pregnancy Discrimination

Act of 1978

Pregnancy Discrimination

Act of 1978

prohibits unequal pay for males and

females doing similar work

prohibits unequal pay for males and

females doing similar work

prohibits discrimination on basis of

race, color, religion, gender, origin

prohibits discrimination on basis of

race, color, religion, gender, origin

prohibits discrimination against

persons age 40 and over

prohibits discrimination against

persons age 40 and over

prohibits discrimination in employment

against pregnant women

prohibits discrimination in employment

against pregnant women

1.1

14 Federal Employment Laws

(cont.)

Americans with

Disabilities Act of 1990

Americans with

Disabilities Act of 1990

Civil Rights Act of 1991

Family & Medical Leave

Act of 1993

Family & Medical Leave

Act of 1993

prohibits discrimination on the basis of

physical or mental disabilities

prohibits discrimination on the basis of

physical or mental disabilities

strengthened the Civil Rights Act of 1964

permits workers to take up to 12 weeks

of unpaid leave for pregnancy, etc.

permits workers to take up to 12 weeks

of unpaid leave for pregnancy, etc.

Adapted from Exhibit 11.2

Uniformed Services

Employment &

Reemployment Rights Act

Uniformed Services

Employment &

Reemployment Rights Act

prohibits discrimination against those

serving in the Armed Forces

prohibits discrimination against those

serving in the Armed Forces

1.1

1.1 Adverse Impact and

Employment Discrimination

Four-Fifths

Rule

Four

-

Fifths

Rule

Adverse

Impact

Adverse

Impact

Disparate

Treatment

Disparate

Treatment

Intentional discrimination that

results in equally qualified people

being treated differently

Unintentional discrimination that

works to the disadvantage of

members of protected groups

Comparison of selection rates of a

protected to a nonprotected group to

determine if adverse impact has

occurred

1.2

(6)

16 Sexual Harassment

Hostile

Work

Environment

Hostile

Work

Environment

Quid

Pro Quo

Quid

Pro Quo

Unwelcome and demeaning sexually

related behavior creates an

intimidating and offensive work

environment

Unwelcome and demeaning sexually

related behavior creates an

intimidating and offensive work

environment

Employee outcomes depend on

whether an individual submits to

sexual harassment

Employee outcomes depend on

whether an individual submits to

sexual harassment

1.3

17 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

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

(7)

19 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.

20

Recruiting

Job Analysis

and

Recruiting

Job Analysis

and

Recruiting

Internal

Recruiting

Internal

Recruiting

External

Recruiting

External

Recruiting

2

2 Job Analysis and Recruiting

work activities

tools and equipment used to do the job

context in which the job is performed

personnel requirements for performing the job

work activities

tools and equipment used to do the job

context in which the job is performed

personnel requirements for performing the job

Information Collected by a Job Analysis

2.1

(8)

22 Job Analysis and Recruiting

Job Description

Job

Specification

Job

Specification

HR Subsystems

Recruiting

Selection

Training

Performance

Appraisal

Performance

Appraisal

Separation

Job Analysis

2.1

23 Job Analysis and Recruiting

Job

Description

Job

Description

written description of the basic tasks,

duties, and responsibilities required

of an employee holding a particular job

written description of the basic tasks,

duties, and responsibilities required

of an employee holding a particular job

Job

Specification

Job

Specification

a written summary of the qualifications

needed to successfully perform a job

a written summary of the qualifications

needed to successfully perform a job

2.1

Internal Recruiting

• 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

2.2

(9)

25

Methods for External

Recruiting

• Advertising

• Employee referrals

• Walk-ins

• Outside organizations

• Employment services

• Special events

• Internet job sites

2.3

© Jessica Rinaldi/Reuters/Landov

26 Beyond the Book

Company Websites:

The New Job Board

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.

27 Selection

Selection

Tests

Selection

Tests

Interviews

Application Forms

and Résumés

Application Forms

and Résumés

_{Background Checks}

References and

Background Checks

3

(10)

28 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

29 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

3.2 Selection Tests

Work

Sample

Biographical

Data

Personality

Assessment

Centers

Cognitive

Ability

Specific

Ability

Selection

Tests

3.3

(11)

31 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

32 Questions in Structured Interviews

Situational Questions

Behavioral Questions

Background Questions

Job-Knowledge Questions

3.4

3.4 Guidelines for Conducting

Effective Structured Interviews

Planning the Interview

• 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

3.4

(12)

34 Guidelines for Conducting

Effective Structured Interviews

Conducting the 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

35 Guidelines for Conducting

Effective Structured Interviews

After the 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

36 Beyond the Book

Finding the “Right

People”

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.

(13)

37 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.

38 Training

Training

Needs

Training

Needs

Training

Methods

Training

Methods

Training

Evaluation

Training

Evaluation

4

4 Determining Training Needs

Conducting

Needs

Assessments

Conducting

Needs

Assessments

Identify

Performance

Deficiencies

Identify

Performance

Deficiencies

Test Employee

Skills and

Knowledge

Test Employee

Skills and

Knowledge

Survey

Employers

and Managers

Survey

Employers

and Managers

Listen to

Customer

Complaints

Listen to

Customer

Complaints

4.1

(14)

40 Work Keys

Needs Assessment

Step 1

Step 2

Step 3

Job Analysis

Test Employee Skills

Compare Employee Skills

to Required Skills

Compare Employee Skills

to Required Skills

Beyond the Book

41 Work Keys

Needs Assessment

Beyond the Book

Training Methods

Impart Information

and Knowledge

Impart Information

and Knowledge

Develop Analytical

and Problem-Solving

Skills

Develop Analytical

and Problem-Solving

Skills

Practice, Learn, or

Change Job

Behaviors

Practice, Learn, or

Change Job

Behaviors

All of the above

• films and videos

• lecture

• planned readings

• films and videos

• lecture

• planned readings

• case studies

• coaching and mentoring

• group discussions

• case studies

• coaching and mentoring

• group discussions

• on-the-job training

• role-playing

• simulations and games

• vestibule training

• on-the-job training

• role-playing

• simulations and games

• vestibule training

• Computer-based learning

4.2

(15)

43 Evaluating Training

Reactions

Learning

Behavior

Results

how satisfied trainees were

with the program

how satisfied trainees were

with the program

how much employees improved

their knowledge or skills

how much employees improved

their knowledge or skills

how much employees actually changed

their on-the-job behavior

how much employees actually changed

their on-the-job behavior

how much training improved

job performance

how much training improved

job performance

4.3

44 Performance Appraisal

Measuring

Job

Performance

Measuring

Job

Performance

Sharing

Performance

Feedback

Sharing

Performance

Feedback

5

5 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

(16)

46 Measuring Job Performance

Improving Job Performance Measurements

Improve Performance

Appraisal Measures

Improve Performance

Appraisal Measures

Train

Performance Raters

Train

Performance Raters

5.1

47 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

5.1 Subjective Performance

Appraisal Scales

5.1

(17)

49 Rater Training

• Teach raters how to avoid errors

• Improve rating accuracy

• Video training and role playing often used

5.1

50 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

5.2 Performance Feedback

1. Separate developmental feedback

from administrative feedback

2. Base performance appraisal feedback sessions

on self-appraisals

3. Have people discuss the feedback they

received with executive coaches or the people

who provided it

1. Separate developmental feedback

from administrative feedback

2. Base performance appraisal feedback sessions

on self-appraisals

3. Have people discuss the feedback they

received with executive coaches or the people

who provided it

Recommendations for Sharing Performance Feedback

5.2

(18)

52 Performance Feedback

• 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

• 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

What to Discuss in Performance Appraisal

Feedback Sessions

5.2

53 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.

54 Compensation

Compensation

Decisions

Compensation

Decisions

Employment

_Benefits

Employment

Benefits

6

(19)

55 Compensation Decisions

• Job

evaluation

• Piecework

• Commission

• Profit sharing

• Employee

stock

ownership

plans

• Stock options

• Hierarchical

• Compressed

Pay

Level

Pay

Variability

Pay

Structure

• Cafeteria

plans

• Flexible plans

• Payroll

deductions

Employment

Benefits

6.1

6.1 Beyond

the Book

56 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?

– 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

6.1

57 Beyond the Book

Pay Raises in the

Recession

• 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.

(20)

58 Pay-Variability Decisions

• Piecework

• Commission

• Profit sharing

• Employee stock ownership plans

(ESOPs)

• Stock options

6.1

59 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

6.1 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

(21)

61 Employee Separations

Terminations

Downsizing

_Downsizing

Turnover

Retirements

6.2

62 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

6.2

©W e n d e ll F ra n ks / iS to c k p h o to .c o m / © J o h n L u n d /T if fa n y S c h o e p p /B le n d I m a g e s /J u p it e ri m a g e s