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Ch10ManagingHumanResources.pptx
Managing human resources
Chapter 10
After reading this chapter you should have a good understanding of:
The major federal laws that regulate employee-employer relationship and workplace activities.
The role of the Equal Employment Opportunity Commission in enforcing federal labor laws.
The different kinds of recruiting philosophies and the advantages and disadvantages of internal and external recruiting.
How companies use interviewing methods and techniques to determine whether candidates are qualified for a job.
Contemporary organizational compensation philosophies and the role equity plays in determining wages.
The four kinds of employee separations and the differences between functional and dysfunctional employee turnover.
How downsizing, outsourcing, and re-shoring decisions are affected by organizational goals and objectives.
The basic benefits available in organizations today and value-added employment benefits of high-performing organizations.
Chapter learning objectives
Process of recruiting, developing, and retaining the right people to form a qualified work force
While difficult, is it one of the most important tasks within management
Understanding federal employment legislation is key to human resource management
Human resource management
Fair Labor Standards Act
Established in 1938
Establishes minimum wage, standards for wages and overtime pay, child labor standards, and record-keeping requirement
Human resource legislation
Equal Pay Act
Established in 1963
Prohibits wage and benefit discrimination between women and men
Equal pay must be given for equal work
Does allow for pay differentials when not based on gender, for reasons such as seniority or merit, education, experience, or training.
Human resource legislation
Equal work does not mean identical jobs but rather the meaning is based upon substantially equal jobs. In other words, it is job content and not job titles that determines if jobs are substantially equal.
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Title VII of the Civil Rights Act
Established in 1964
Outlaws discrimination based on race, color, religion, sex, or national origin in schools, workplace, and public facilities
Prohibits discrimination in the workplace through hiring, employment, and termination or layoff
Human resource legislation
Age Discrimination Act
Established in 1967
Prohibits employment discrimination against individuals 40 years old or older
Older workers also cannot be denied health benefits or training opportunities based on their age and cannot have mandatory retirement
Human resource legislation
Americans with Disabilities Act
Established in 1990
Outlaws discrimination based on physical or mental disability
May occur by an employer through:
Limiting or classifying a job or applicant in an adverse fashion
Denying opportunity for employment
Denying promotion to qualified applications
Not making reasonable accommodations for disabled employees
Human resource legislation
Sexual Harassment
Within Title VII of the Civil Rights Act
Prohibits harassment of an employee based on their sex
Victim does not need to be of the opposite sex
Victim does not need to be the person harassed by anyone who found the conduct offensive
Does not need to be of sexual nature
Can include verbal conduct or unwelcome sexual advances
Any conduct that affects and individuals work performance or creates a hostile, intimidating, or offensive work environment
Human resource legislation
Bona fide Occupational Qualifications
Seeks to make factors such as age, gender, religion, race, or disability irrelevant in matters of hiring, employment, or termination decision
Believes it should be based on job related factors, reasonably necessary to business operations
Is allowed on the basis that it is “reasonably necessary to the normal operations of that particular business or enterprise”
Example: A Protestant church recruiting a new pastor can specify that being a Protestant is a qualification to applying
Human resource legislation
Equal Employment Opportunity Commission
Has the authority to investigate charges of discrimination against employers with at least 15 employees, labor unions, and employment agencies
Also has the authority to file lawsuits to protect individual’s rights and the public interest
Two set of federal laws within:
National Labor Relations Act
Occupational Safety and Health Act
Human resource legislation
National Labor Relations Act
Protects employees right to unionize
Laws regulate interactions between management and the labor unions representing employees
Equal Employment Opportunity Commission
Occupational Safety and Health Act
Employers must provide safe and healthful work environments, protecting employees from health and safety hazards on the job
The Occupational Safety and Health Administration enforces the standards, providing training and outreach, and conducting workplace inspections
Can be conducted without any advance notice on-site or via phone
Equal Employment Opportunity Commission
First stand of the human resource management process
Overall process of attracting, selecting, and interviewing suitable candidates
Two step process
Find qualified applicants
Determine which candidates to hire
Recruitment
Internal Recruitment
Developing a pool of qualified applicants and selecting a candidate from the existing workforce
Allows for the organization to select an employee already familiar with the organization
Reduces startup and training time
Saves time and costs
Improves employee satisfaction, morale, and commitment
Creating a job posting allows for employees within the organization to learn about available vacancies
recruitment
External Recruitment
Selecting a candidate from a pool of applicants outside the company
Use means such as newspapers, magazines, job search websites, and job fairs to advertise
Advantage is the inflow of new ideas
Allows the organization to diversify their workforce
Recruitment
recruitment
recruitment
Interview
When one or more company representatives have a formal conversation with a candidate to evaluate their qualifications
Types of interviews
Screening Interview
Used to determine if the applicant meets the minimum requirements
Telephone Interview
Used to narrow the applicant pool and determine the suitability of the applicant
Video Conferencing
Is cost effective and convenient to use when the candidate is not local
Types Of Interviews
One-on-One Interviews
Most common interview type
Often the last step in the hiring process conducted by a direct supervisor
Panel Interviews
Conducted by two or more company representatives
Used to reduce bias
Sequential/Serial Interviews
Require the candidate to meet with several people throughout the day
Usually back-to-back interviews
Types of Interviews
Three types of interview formats:
Unstructured interview
Structured interview
Semi-structured interview
Interview Formats
Unstructured Interviews
Questions are based on the candidates application and resume
Interviewers ask a variety of questions developing throughout the interview
There are no prearranged questions
Advantage is that it allows the interviewer to build rapport through the natural flow conversation style
Disadvantage is there is a lack of comparison data for the interviewer
Interview Formats
Structured Interviews
Organization and prearranged with questions
Goal is to ensure all candidates are presented with the exact same questions
Allow for comparisons to be made between candidates
Reduces interviewer bias
Ensures all the questions will be job-related
Disadvantage is that it does not allow for the discovery of follow-up information as there is in conversation style interviews
Interview formats
Semi-structured Interviews
Hybrid format between structured and unstructured formats
Has structured questions but time for unstructured questions
Allows for a ‘laid-back’ style of interview
Interview Formats
Four types of questions in a structured interview:
Background questions
Skill-based questions
Situational questions
Behavioral questions
Interview questions
Background Questions
Straightforward questions in regards to education, experience, and qualifications
Skill-based Questions
Questions about job knowledge
Require the candidate to demonstrate their job knowledge to determine of the candidate has practical skills to perform the job
Interview questions
Situational Questions
Questions to understand how the applicant will respond or react to a real-life job situation
Established if the applicant clearly understands the job requirements by giving typical job scenarios
Behavioral Questions
Questions in regards to the applicants previous job experiences
Designed to compel candidates to share of their previous experience and work history
Interview Questions
Interview Do’s
Ask about:
General questions: What is your academic background?
Motivation: Why are you motivated to pursue this field?
Future ambitions: How will this job open the door for your future aspirations?
Past Experience: What experience makes you the most suitable candidate for this position?
Qualities: What are your strengths and weaknesses?
Interview Don’ts
Ask about:
Age: Hold old are you? When were you born?
Organizations: What clubs do you belong too?
Personal: How much do you weigh?
Military record: Were you honorably discharged? Why?
Arrest record: Have you ever been arrested?
National origin: What is your native language?
Religion: What are your religious affiliations?
Disabilities: Have you had any recent or past illnesses or operations?
Systematic and periodic process in which an employee is assessed in how well they perform their assigned duties and responsibilities and then provide feedback to the employee
Also known as employee reviews
Performance Appraisals
Many areas of evaluation are used based on the organization
Common evaluation categories include:
Quality
Dependability
Collaboration
Decision-making
Initiative
Leadership
Performance Appraisals
When preparing, managers must focus on two broad categories
Past oriented review
Future oriented focus
Performance Appraisals
Past focused review:
Evaluating the employees performance during a set interval of time
Focuses on assessing the employees job performance in dependability, attitude, productivity, and initiative
Performance appraisals
Future focused:
Discovering the reasons behind poor performance and developing strategies to help the employee perform better in the future
Includes:
Setting performance standards
Establishing goals and expectations
Performance appraisals
Four main goals of using performance appraisals to evaluate job progress:
Developmental uses
Used to look at individual needs, performance feedback, transfers and placements
Administrative decisions and uses
Used to determine salary, promotions, terminations, recognitions, and layoffs
Organizational maintenance
Used for HR planning, understanding training needs, and goal identification
Documentation
Used to validate research, to reinforce HR decisions, and for legal requirements
Performance Appraisals
Traditional Versus modern appraisals
Used to gather information on the employees performance from the people who work with them
Gives the organization a well-rounded perspective for feedback
Two categories of individual participation:
Vertical chain of command
Includes direct reports and supervisors
Those in working relationships with the employee
Includes peers and colleagues
360-degree feedback
360-degree Feedback
Process of formal efforts by the supervisor to provide feedback to the employee
Verbal and written warnings to explain and document the performance problems
Goal is to help the employee understand why their performance problem is not meeting expectations
Progressive discipline plans
Four steps in this process:
Verbal warning
Oral reprimands issued to the employee for poor performance
Used to counsel the employee to help them improve
First written warning
A written warning is a documentation of the verbal warning previously given
Second written warning
Termination
It is vital for the manager to understand the legal terms of termination to avoid wrongful discharge of employees
Progressive discipline plans
Supervisors must be proficient at clearly and objectively documenting the poor performance and the expectations. Commonly, the employee being coached and counseled is asked to sign written warnings. Written warnings are part of an employee’s file and generally housed both in the department by the supervisor and in the department of human resources. The length of time between written warnings varies from company to company and depends upon the impact and impact of the employee’s performance deficiency. Additionally, companies may choose to bypass the verbal warning and proceed immediately with a written warning. Also, companies may issue one warning instead of proceeding with a progressive discipline plan. For example, a derogatory outburst at the workplace by an employee may cause an employer to issue only one written warning. Some behaviors, such as violence, will cause a company to immediate fire the employee. Generally, terminating the employee is not the first option. Most companies provide employees a chance to change their behavior.
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Is the financial and nonfinancial exchange occurring between the organization and employee in exchange for the employees work
Pay is determined based on internal and external equity
External equity is the comparison of wages paid to similar and comparable employees within the similar marketplace
Internal equity is the comparison of wages paid to similar and comparable employees within the organization
compensation
Job evaluation is the process of setting the worth of each job by evaluating the market value of the knowledge, abilities, and skills required to perform the job
The Occupational Employment Statistics give federal and state information regarding typical wages by occupation
compensation
Salary ranges
Used by businesses to establish a fixed framework of pay for each job
Used to set maximum and minimum pay rates
Based on the level of education, knowledge, skill, and experience
Establishes the relationship of one job to another
compensation
Organizational compensation philosophy
Financial representation of the company’s commitment to how it values its workforce
Explain the ‘why’ of an employees pay
Three types of organization compensation decisions to form the organizational compensation philosophy
Pay structure
Pay level
Pay variability
Compensation
Pay-structure decisions
Organizations judgments and choices about internal pay distributions
Hierarchical pay structures are designed with large pay differences
Compressed pay structures are designed with smaller pay differences and fewer pay levels
Pay-level decisions
Organizations judgments and choices about paying employees at levels below, above, or at current market wages
Organizational compensation decisions
Pay-variability decisions
Organizations judgments and choices about the extent to vary employee’s pay with individual and organizational performance
Include decisions regarding hourly, salary, piecework, or commission rate of pay
Designed to improve teamwork and collaboration
Include profit sharing, gainsharing plans, and employee stock ownership plans
Organizational compensation decisions
Profit sharing
Payment of a portion of the organizations profits to employees above their regular salaries and bonuses
Gainsharing plans
Compensate employees by distributing cost savings to employees
Usually in the form of a bonus check
Employee stock ownership plans
Compensates employees by assigning and distributing shares of company stock based on the company’s profitability
Organizational compensation decisions
Compensations paid to employees other than direct wages
Law mandates:
Social security
Worker’s compensation
Unemployment insurance
Often company's will offer customary employee benefits or value-added employment benefits
Employment benefits
Customary employment benefits
Include paid holidays and vacations, sick leave, health insurance, life insurance, dental care, eye care, retirement plans, etc.
Often will give options to to employees to choose which benefit suits their needs
Value-added employment benefits
Designed to attract and retain high performers
Include benefits such as day-care facilities, paid personal days, legal assistance, fitness facilities, flexible work schedules, etc.
Employment benefits
Although employment benefits are unlikely to improve employee motivation or performance, high performing companies understand that they do affect job satisfaction. Additionally, value-added employment benefits can influence an employee’s decisions about staying or leaving the organization and can influence the company's attractiveness level to job applicants.
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Parting of an employee from the organization for any reason
Four types of employee separation:
Voluntary
When the employee resigns from the company
Involuntary
Company decides to end the employer-employee relationship
Are classified as temporary or permanent
Temporary
Can be specified or unspecified length of time
Layoff is considered temporary due to lack of work
Permanent
Employee separations
Releasing employees because the organization no longer requires their job
Often during a restructure or reorganization of the company
Downsizing
Company restructure that eliminates jobs by transferring the work to another organization
Can be domestic or international
Often is overseas to reduce labor costs
Currently re-shoring is a new trend
When the organization brings the outsources work back in-house
Often due to quality control or customer retention
outsourcing
Rate in which companies lose employees
When an employee voluntarily or involuntarily leaves a company
Tracked through two lenses to determine its effect on the organization
Functional turnover
Loss of poor-performing employees
Gives the employer the opportunity to hire a better, more productive worker
Dysfunctional turnover
Loss of a high-performing employee
Costly to the organization to find a replacement
Employee turnover
Four-prong evaluation system to determine the causes of dysfunctional turnover
Examine pay structures
Evaluate benefits plans
Review job design
Explore advancement opportunities
Is a major concern to organizations because of the threat of having a culture of mediocrity
Is created when dysfunctional turnover is high and functional turnover is low
Employee turnover
Organizations are keenly aware of the need to remain competitive and productive in today’s business environment. Organizations unable to do are in danger of extinction.
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Promoting from Within Hiring Externally Potential Advantages Potential Advantage
1. Easily accessible applicants 2. Quicker and less costly 3. Employee is familiar with
company 4. Demonstrates to employees the
organization values career development
5. Lowers costs for some jobs 6. Improve employee morale rather
than upset it by making major changes
1. More applicants as the information is reaching bigger talent pools
2. Provides new perspectives, insights, and ideas from other industries and backgrounds
3. Initiates a turnaround 4. Reduce need for training if employee
has prior experience in field 5. Avoid internal politics 6. Increases diversity
Promoting from Within Hiring Externally
Potential Advantages Potential Advantage
1. Easily accessible applicants
2. Quicker and less costly
3. Employee is familiar with
company
4. Demonstrates to employees the
organization values career
development
5. Lowers costs for some jobs
6. Improve employee morale rather
than upset it by making major
changes
1. More applicants as the information is
reaching bigger talent pools
2. Provides new perspectives, insights,
and ideas from other industries and
backgrounds
3. Initiates a turnaround
4. Reduce need for training if employee
has prior experience in field
5. Avoid internal politics
6. Increases diversity
|
Promoting from Within |
Hiring Externally |
|
Potential Disadvantages |
Potential Disadvantages |
|
1. Narrow perspective and ideas 2. May not turn company around 3. Job duties will require training and learning curve 4. Occurrence of internal politics 5. Difficult with rapid growth 6. Ripple effect 7. Fewer applicants as the talent pool is smaller |
1. Less information on applicants 2. Time consuming 3. More costly 4. New hire requires more time to adjust to the organizational culture and systems 5. May require higher pay for new hire 6. Current organization members may resist new ideas from outsider |
|
Categories |
Traditional Appraisals |
Modern, Systems Appraisals |
|
Guiding Values |
Individualistic, Control oriented, Documentary |
Systematic, Developmental, Problem solving |
|
Leadership Styles |
Directional, Evaluative |
Facilitative, Coaching |
|
Frequency |
Occasional |
Frequent |
|
Formalities |
High |
Low |
|
Rewards |
Individualistic |
Grouped, Organizational |
