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Organizational Behavior

Eighteenth Edition

Chapter 17

Human Resource Policies and Practices

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Welcome to this Organizational Behavior course that uses the 18th edition of the textbook, Organizational Behavior by Robbins and Judge. This is considered among the most widely used OB textbooks in the world. Robbins and Judge are recognized as definitive aggregators of OB concepts, applications, and practices. The course and this book will provide you with a resource that will benefit you throughout your degree program and your professional life.

Chapter 17: Human Resource Policies and Practices

Describe the Value of Recruitment Methods

Strategic recruiting has become a cornerstone for many companies, in which recruiting practices are developed in alignment with long-term strategic goals.

The most effective recruiters—internal or external—are well informed about the job, are efficient in communicating with potential recruits, and treat recruits with consideration and respect. They also use a variety of online tools, including job boards and social media.

The first stage in any HR program is recruiting, closely followed by selection. A selection system can only be as good as the individuals who apply in the first place.

Strategic recruiting has become a cornerstone for many companies, in which recruiting practices are developed in alignment with long-term strategic goals. As for defining “success” in recruiting, most research suggests that the best system attracts candidates who are highly knowledgeable about the job and the organization. Such candidates are likely to have a better fit between their skills and job requirements, and to be more satisfied in the jobs they take.

Consistent with these findings, some of the most effective recruiting techniques include internal referrals, internship programs, and other methods that give potential applicants enough information to adequately evaluate the roles they may be occupying. Companies are increasingly turning away from outside recruiting agencies and relying on their own executives and HR professionals for talent searches.

Identify the Most Useful Substantive Selection Methods (1 of 5)

Substantive Selection

Written tests

Performance simulation tests

Interviews

Substantive selection is at the heart of the selection process and is used after the applicant passes initial screening. It includes written tests, performance simulation tests, and interviews. Let’s look at each one in more detail.

Identify the Most Useful Substantive Selection Methods (2 of 5)

Written Tests

Typically tests of intelligence or cognitive ability, personality, and integrity.

Intelligence tests are particularly good predictors for jobs that require cognitive complexity.

Evidence shows that these tests are good predictors, but care should be taken to use the “right” test.

Long popular as selection devices, written employment tests—called “paper-and-pencil” tests, though most are now available online—declined in use between the late 1960s and mid-1980s, especially in the United States. They were frequently characterized as discriminatory, and many organizations had not validated them as job-related. Since then, however, there has been a resurgence, and today most organizations have at least considered using one or more tests.29 Managers recognize that valid tests can help predict who will be successful on the job.30 Applicants, however, tend to view written tests as less valid and fair than interviews or performance tests.31 Typical tests include (1) intelligence or cognitive ability tests, (2) personality tests, and (3) integrity tests.

Intelligence tests are particularly good predictors for jobs that require cognitive complexity. Tests in intellectual ability, spatial and mechanical ability, perceptual accuracy, and motor ability have shown to be moderately valid predictors for many semiskilled and unskilled operative jobs. As ethical problems have increased in organizations, integrity tests have gained popularity. These paper-and-pencil tests that measure dependability, carefulness, responsibility, and honesty. While these tests are powerful predictors of performance, care should be taken that the test actually measures criteria matched to the job responsibilities.

Identify the Most Useful Substantive Selection Methods (3 of 5)

Performance-Simulation Tests

Have higher face validity and their popularity has increased.

Work sample tests: hands-on simulations of part or all of the job that must be performed by applicants.

Assessment centers: evaluate managerial potential.

Situational judgment tests

Realistic Job Previews

Although they are more complicated to develop and administer than written tests, performance-simulation tests have higher face validity, which measures whether applicants perceive the measures to be accurate, and their popularity has increased. The three best-known performance simulation tests are work samples, assessment centers, and situational judgment tests.

Work sample tests are hands-on simulations of part or all of the job that must be performed by applicants. Work samples are based on job analysis data, and each element is matched with a corresponding job performance element. Work samples yield valid data superior to written aptitude and personality tests.

Assessment centers use a more elaborate set of performance simulation tests designed to evaluate a candidate’s managerial potential. Line executives, supervisors, and/or trained psychologists evaluate candidates as they go through one to several days of exercises that simulate real problems. Assessment centers have consistently demonstrated results that predict later job performance in managerial positions.

Situational judgment tests ask applicants how they would perform in a variety of job situations and compare their answers to those of high-performing employees. One study comparing situational judgment tests to assessment centers found the assessment center was a better predictor of job performance, although the difference was not large. Ultimately, the lower cost of the situational judgment test may make it a better choice for some organizations than a more elaborate work sample or assessment center.

Finally, realistic job previews are given as a way to assess talent versus experience. They decrease turnover because both employers and new hires know what they are getting into ahead of time.

Identify the Most Useful Substantive Selection Methods (4 of 5)

Interviews

The most frequently used selection device.

It carries a great deal of weight.

Unstructured interviews are not as effective as structured ones, particularly behavioral structured interviews.

Panel interviews minimize the influence of individual biases and have higher validity.

The interview continues to be the selection device most frequently used and it carries a great deal of weight. The candidate who performs poorly in the employment interview is likely to be cut, regardless of his/her experience, test scores, or letters of recommendation, and vice versa. This is important because of the unstructured form of most selection interviews.

The unstructured interview—short in duration, casual, and made up of random questions—is an ineffective selection device. The data are typically biased and often unrelated to future job performance. Without structure, interviewers tend to favor applicants who share their attitudes, give undue weight to negative information, and allow the order in which applicants are interviewed to influence their evaluations. To reduce such bias and improve the validity of interviews, managers should adopt a standardized set of questions, a uniform method of recording information, and standardized ratings of applicants’ qualifications. Training interviewers to focus on specific dimensions of job performance, practicing evaluation of sample candidates, and giving interviewers feedback on how well they were focused on job-relevant characteristics significantly improves the accuracy of their ratings.

Interview effectiveness also improves when employers use behavioral structured interviews, probably because these assessments are less influenced by interviewer biases. They require applicants to describe how they handled specific problems and situations in previous jobs, based on the assumption that past behavior offer the best predictor of future behavior.

Panel interviews also minimize the influence of individual biases and have higher validity.

Most organizations use interviews as more than a prediction of performance device.

Identify the Most Useful Substantive Selection Methods (5 of 5)

Contingent Selection

Applicants that pass the substantive selection process are ready to be hired, contingent on final checks.

A common contingent method is a drug test.

Drug testing is controversial.

Under the Americans with Disabilities Act, firms may not require employees to pass a medical exam before a job offer is made.

Once an applicant has passed substantive selection such as background checks, interviews, and so on, the individual is ready to be hired subject to a final check.

One common, but controversial, contingent method is a drug test. Many applicants think testing without reasonable suspicion is invasive or unfair and say they should be tested on job performance factors, not lifestyle choices that may not be relevant. Employers might counter that drug use and abuse are extremely costly, not just in financial terms but also in terms of people’s safety. They have the law on their side: the U.S. Supreme Court has concluded that drug tests are “minimally invasive” selection procedures that as a rule, do not violate individuals’ rights.

Under the Americans with Disabilities Act, firms may not require employees to pass a medical exam before a job offer is made. They can conduct medical exams after making a contingent offer, to determine whether an applicant is physically or mentally able to do the job.

Compare the Main Types of Training (1 of 3)

Types of Training

Basic skills

Technical skills

Problem-solving skills

Interpersonal skills

In addition, we consider:

Civility training

Ethics training

There are four general skill categories for training: basic literacy, technical skills, problem-solving skills, and interpersonal skills. In addition, we discuss civility training and ethics training.

Compare the Main Types of Training (2 of 3)

Basic Skills

Many employers believe that high school graduates lack basic skills in reading comprehension, writing, and math.

As work has become more sophisticated, the need for these basic skills has grown significantly.

It’s a worldwide problem, from the most developed countries to the least.

Let’s begin with basic skills. One survey of more than 400 human resources professionals found that 40 percent of employers believe high school graduates lack basic skills in reading comprehension, writing, and math. As work has become more sophisticated, the need for these basic skills has grown significantly, leading to a gap between employer demands for skills and the available skills in the workforce. The challenge isn’t unique to the United States. It’s a worldwide problem, from the most developed countries to the least. For many undeveloped countries, widespread illiteracy means there is almost no hope of competing in a global economy. As a result, organizations find they must provide basic reading and math skills for their employees.

Compare the Main Types of Training (3 of 3)

Technical Skills

Technical training is important for:

New technology

New structural designs

Second, most training is directed at upgrading and improving an employee’s technical skills. Technical training is important for two reasons—new technology and new structural designs.

As organizations flatten their structures, expand their use of teams, and break down traditional departmental barriers, employees need mastery of a wider variety of tasks and increased knowledge of how their organization operates. Companies like Tata and Wipro provide new hires with up to 3 months of training to ensure that have the knowledge to perform the technical work demanded.

Compare the Four Main Types of Training (1 of 4)

Problem-Solving Skills

Problem-solving training for managers and other employees can include:

Activities to sharpen their logic, reasoning, and problem defining skills.

Activities to improve their abilities to assess causation, develop and analyze alternatives, and select solutions.

Next we turn to problem-solving skills. Problem-solving training for managers and other employees can include activities to sharpen their logic, reasoning, and problem defining skills as well as their abilities to assess causation, develop and analyze alternatives, and select solutions.

Problem-solving training has become a part of almost every organizational effort to introduce self-managed teams or implement quality-management programs.

Compare the Four Main Types of Training (2 of 4)

Interpersonal Skills

Almost all employees belong to a work unit where their work performance depends on their ability to interact with coworkers and bosses.

Next are interpersonal skills. Almost all employees belong to a work unit, so to some degree, their work performance depends on their ability to effectively interact.

Compare the Four Main Types of Training (3 of 4)

Civility Training

As HR managers have become more aware of the effects of social behavior in the workplace, they have paid more attention to incivility, bullying, and abusive supervision in organizations.

To minimize incivility, use training targeted to building civility.

As HR managers have become increasingly aware of the effects of social behavior in the workplace, they have paid more attention to the problems of incivility, bullying, and abusive supervision in organizations. Examples of incivility include being ignored, being excluded from social situations, having your reputation undermined in front of others, and experiencing other actions meant to demean or disparage. Researchers have shown that these forms of negative behavior can decrease satisfaction, reduce job performance, increase perceptions of unfair treatment, increase depression, and lead to psychological withdrawal from the workplace.

The evidence suggests that deliberate interventions to improve the workplace climate for positive behavior can indeed minimize the problems of incivility. One possibility is training specifically targeted to building civility by having directed conversations about it and supporting the reduction of incivility on an ongoing process.

Compare the Four Main Types of Training (4 of 4)

Ethics Training

Many U.S. workers receive ethics training.

Can ethics be taught?

Critics argue that ethics are based on values, and value systems are fixed at an early age.

Ethics cannot be formally “taught” but must be learned by example.

Supporters say values can be learned, and that training is helpful for recognizing ethical dilemmas and ethical issues.

Finally, we come to ethics training. It is common for employees to receive ethics training.

Critics argue that ethics are based on values, and value systems are fixed at an early age, and that ethics cannot be formally “taught” but must be learned by example.

Supporters of ethics training argue that values can be learned and changed after early childhood. Even if this isn’t true, training helps employees to recognize ethical dilemmas, become more aware of the ethical issues underlying their actions, and reaffirms an organization’s expectations. Individuals who have greater exposure to organizational ethics codes and ethics training do tend to be more satisfied and perceive their organizations as more socially responsible, so ethics training does have some positive effects.

Contrast Formal and Informal Training Methods (1 of 3)

Training Methods

Historically, training meant “formal training”.

Organizations are increasingly relying on informal training.

Unstructured, unplanned, and easily adapted to situations and individuals.

Historically, training meant “formal training,” or something that is planned in advance and has a structured format. However, organizations are increasingly relying on informal training, which is unstructured, unplanned, and easily adapted to situations and individuals. Most informal training is nothing other than employees helping each other out. They share information and solve work-related problems with one another.

Contrast Formal and Informal Training Methods (2 of 3)

Job Training

On-the-job training includes job rotation, apprenticeships, understudy assignments, and formal mentoring programs.

Off-the-job training includes live classroom lectures, videotapes, public seminars, self-study, Internet and satellite television courses, group activities, and e-training.

Computer-Based Training

On-the-job training includes job rotation, apprenticeships, understudy assignments, and formal mentoring programs. The primary drawback of these methods is that they often disrupt the workplace.

Computer-based training. Recently, e-training (computer-based training) is the fastest growing training delivery mechanism.

Organizations are investing increasingly in off-the-job training—nearly $130 billion annually. What types of training might this include? The most popular is live classroom lectures. It also encompasses videotapes, public seminars, self-study programs, Internet courses, satellite-beamed television classes, and group activities that use role-plays and case studies. Recently, e-training (computer-based training) is the fastest growing training delivery mechanism.

Contrast Formal and Informal Training Methods (3 of 3)

Evaluating Effectiveness

The effectiveness of a training program can refer to the level of student satisfaction, the amount students learn, the extent to which they transfer the material from training to their jobs, or the financial return on investments in training.

An effective training program requires not just teaching the skills, but also changing the work environment to support the trainees.

Not all training methods are equally effective, so rigorous measurement of multiple training outcomes should be a part of every training effort.

The success of training also depends on the individual. If individuals are unmotivated, they will learn very little.

Personality is important: those with an internal locus of control, high conscientiousness, high cognitive ability, and high self-efficacy learn more. The climate also is important: when trainees believe that there are opportunities and resources to let them apply their newly learned skills, they are more motivated and do better in training programs. After-training support from supervisors and coworkers has a strong influence on whether employees transfer their learning into new behavior.

Lastly, an effective training program requires not just teaching the skills, but also changing the work environment to support the trainees.

List the Methods of Performance Evaluation (1 of 9)

What is Performance?

Three major types of behavior to consider:

Task performance

Citizenship

Counterproductivity

Most managers believe good performance means doing well on the first two dimensions and avoiding the third.

In the past, most organizations assessed only how well employees performed the tasks listed on a job description, but today’s less hierarchical and more service-oriented organizations require more.

Researchers now recognize three major types of behavior that constitute performance at work:

Task performance – performing the duties and responsibilities that contribute to the production of a good or service or to administrative tasks. This includes most of the tasks in a conventional job description.

Citizenship – actions that contribute to the psychological environment of the organization, such as helping others when not required, supporting organizational objectives, treating coworkers with respect, making constructive suggestions, and saying positive things about the workplace.

Counter-productivity – actions that actively damage the organization. These behaviors include stealing, damaging company property, behaving aggressively toward coworkers, and taking avoidable absences.

Most managers believe good performance means doing well on the first two dimensions and avoiding the third. A person who does core job tasks very well but is rude and aggressive toward coworkers is not going to be considered a good employee in most organizations, and even the most pleasant and upbeat worker who can’t do the main job tasks well is not going to be a good employee.

List the Methods of Performance Evaluation (2 of 9)

Purposes of Performance Evaluation

Make general human resource decisions.

Identify training and development needs.

Pinpoint employee skills and competencies needing development.

Provide feedback to employees.

Can be the basis for reward allocations.

Let’s talk a little about the purposes of performance evaluation. Management uses evaluations for general human resource decisions, such as promotions, transfers, and terminations. Evaluations also identify training and development needs, as they pinpoint employee skills and competencies needing development and can provide criterion against which selection and development programs are validated.

Evaluations also provide feedback to employees on how the organization views their performance and are often the basis for reward allocations including merit pay increases.

List the Methods of Performance Evaluation (3 of 9)

What Do We Evaluate?

Individual task outcomes

Behaviors

Traits

Who Should Do the Evaluating?

Traditionally, the manager, but today that is changing.

Now peers, subordinates, and the employee can be involved.

What do we evaluate? The criteria or criterion used to evaluate performance has a major influence on performance. The three most popular sets of criteria are individual task outcomes, behaviors, and traits. If ends count, rather than means, then management should evaluate an employee’s task outcomes. It is difficult to attribute specific outcomes to the actions of employees in advisory or support positions or employees whose work assignments are part of a group effort; we may readily evaluate the group’s performance, but if it is hard to identify the contribution of each group member, management will often evaluate the employee’s behavior. The weakest set of criteria is individual traits because they are farthest removed from the actual performance of the job itself. Traits may or may not be highly correlated with positive task outcomes, but only the naive would ignore the reality that such traits are frequently used in organizations for assessing performance.

Who should do the evaluating? Traditionally, the task has fallen to managers, because they are held responsible for their employees’ performance, but others may do the job better. With many of today’s organizations using self-managed teams, telecommuting, and other organizing devices that distance bosses from employees, the immediate superior may not be the most reliable judge of an employee’s performance. More and more, peers and even subordinates are being asked to take part in the process, and employees are participating in their own evaluation. A recent survey found about half of executives and 53% of employees now have input into their performance evaluations.

As you might expect, self-evaluations often suffer from over-inflated assessment and self-serving bias, and they seldom agree with superiors’ ratings. So they are probably better suited to developmental than evaluative purposes and should be combined with other sources of information to reduce rating errors. In most situations, in fact, it is highly advisable to use multiple sources of ratings. Any individual performance rating may say as much about the rater as about the person being evaluated. By averaging across raters, we can obtain a more reliable, unbiased, and accurate performance evaluation.

List the Methods of Performance Evaluation (4 of 9)

Exhibit 17-2 360-Degree Evaluations

Another approach to performance evaluation is 360-degree evaluations. As shown in Exhibit 17-2, 360-degree evaluations provide performance feedback from the employee’s full circle of daily contacts, from mailroom workers to customers to bosses to peers. The number of appraisals can be as few as 3 or 4 or as many as 25; most organizations collect 5 to 10 per employee.

Evidence on the effectiveness of the 360-degree evaluation is mixed. It provides employees with a wider perspective on their performance, but many organizations don’t spend the time to train evaluators in giving constructive criticism.

List the Methods of Performance Evaluation (5 of 9)

Methods of Performance Evaluation

Written Essays

Critical Incidents

Graphic Ratings Scales

Behaviorally Anchored Rating Scales (BARS)

Forced Comparisons

Group order ranking

Individual ranking

There are several different methods to evaluate an employee’s performance.

First, written essays are the simplest method of evaluation. It involves writing a narrative describing an employee’s strengths, weaknesses, past performance, potential, and suggestions for improvement. No complex forms or extensive training is required, but the results often reflect the ability of the writer.

Second is critical incidents. These focus on those behaviors that are key in making the difference between executing a job effectively and executing it ineffectively. The appraiser writes down anecdotes that describe what the employee did that was especially effective or ineffective. A list of critical incidents provides a rich set of examples to discuss with the employee.

Third is graphic ratings scales, based on a set of performance factors, such as quantity and quality of work, depth of knowledge, cooperation, loyalty, attendance, honesty, and initiative. The evaluator then goes down the list and rates each on incremental scales. They are popular because they are less time-consuming to develop and administer, and allow for quantitative analysis and comparison.

Fourth is behaviorally anchored rating scales, or BARS, which combine major elements from the critical incident and graphic rating scale approaches. The appraiser rates the employees based on items along a continuum, but the points are examples of actual behavior. To develop the BARS, participants first contribute specific illustrations of effective and ineffective behavior, which are translated into a set of performance dimensions with varying levels of quality.

Finally, forced comparisons evaluate one individual’s performance against the performance of one or more. So, it’s a relative rather than an absolute measuring device. The two most popular are group order ranking and individual ranking. The group order ranking requires the evaluator to place employees into a particular classification, such as top one-fifth or second one-fifth. The individual ranking approach rank-orders employees from best to worst.

List the Methods of Performance Evaluation (6 of 9)

Exhibit 17-3 Median Grade Point Average (GPA ) by Academic Year and Degree Level

* Note: Study of GPA from 1,683 courses, 28 departments, and 3,176 instructors at a large public university.

Source: Based on R. Todd Jewell, M. A. McPherson, and M. A. Tieslau, “Whose Fault Is It? Assigning Blame for Grade Inflation in Higher Education,” Applied Economics 45 (2013): 1185–200.

One parallel to forced ranking is forced distribution of college grades. As shown in Exhibit 17-3, the average GPAs have gotten much higher over time.

List the Methods of Performance Evaluation (7 of 9)

Improving Performance Evaluations:

Use multiple evaluators.

Evaluate selectively.

Train evaluators.

Provide employees with due process.

Three features of due process.

Post appraisals online.

The performance evaluation process is a potential minefield. Evaluators can unconsciously inflate evaluations (positive leniency), understate performance (negative leniency), or allow the assessment of one characteristic to unduly influence the assessment of others (the halo error). Some appraisers bias their evaluations by unconsciously favoring people who have qualities and traits similar to their own (the similarity error). And, of course, some evaluators see the evaluation process as a political opportunity to overtly reward or punish employees they like or dislike.

Some suggestions for methods to improve evaluation processes and outcomes start with the use of multiple evaluators. As the number of evaluators increases, the probability of attaining more accurate information increases. If a set of evaluators judges a performance, the highest and lowest scores are dropped, and the final performance evaluation is made up from the cumulative scores of those remaining.

Second is to evaluate selectively. Evaluate only those areas in which you have some expertise. Appraisers should be as close as possible, in terms of organizational level, to the individual being evaluated.

Third is to train evaluators. There is substantial evidence that training evaluators can make them more accurate raters. Most rater training courses emphasize changing the raters’ frame of reference by teaching them what to look for, so everyone in the organization defines good performance in the same way.

Fourth is to provide employees with due process. The concept of due process increases the perception that employees are treated fairly.

Three features characterize due process systems: individuals are provided with adequate notice of what is expected of them; all relevant evidence is aired in a fair hearing so individuals affected can respond; and the final decision is based on the evidence and is free from bias. One technique organizations might consider to enhance due process is posting appraisals online so employees can see their own performance scores exactly as the supervisor enters them.

List the Methods of Performance Evaluation (8 of 9)

Providing Performance Feedback

Managers are often uncomfortable discussing weaknesses with employees.

In fact, unless pressured by organizational policies and controls, managers are likely to ignore this responsibility.

The solution to the problem is not to ignore it but to train managers to conduct constructive feedback sessions.

Providing performance feedback is a key method to improve evaluation, but managers are often uncomfortable discussing weaknesses with employees. In fact, unless pressured by organizational policies and controls, managers are likely to ignore this responsibility.

The solution to the problem is not to ignore it but to train managers to conduct constructive feedback sessions. An effective review—in which the employee perceives the appraisal as fair, the manager as sincere, and the climate as constructive—can leave the employee feeling upbeat, informed about areas needing improvement, and determined to correct them. Appraisals should also be as specific as possible.

List the Methods of Performance Evaluation (9 of 9)

International Variations in Performance Appraisal

Individual-oriented cultures emphasize formal performance evaluation systems more than informal systems.

Let’s examine performance evaluation globally in the context of four cultural dimensions: individualism/collectivism, a person’s relationship to the environment, time orientation, and focus of responsibility.

Individual-oriented cultures such as the United States emphasize formal performance evaluation systems more than informal systems. In Korea, Singapore, and even Japan, the use of performance evaluation has increased dramatically in the past decade, though not always smoothly or without controversy. One survey of Korean employees revealed that a majority questioned the validity of their performance evaluation results. One recent study focused on the banking industry found significant differences across countries in performance appraisal practices.

Formal performance appraisals were used more frequently in countries that were high in assertiveness, high in uncertainty avoidance, and low in in-group collectivism.

Another study found that individuals who were high in power distance and high in collectivism tend to give more lenient performance appraisals.

Describe the Leadership Role of HR in Organizations (1 of 5)

Communicating HR Practices

Leadership by HR begins with informing employees about HR practices and explaining the implications of decisions that might be made around these practices.

It is not enough to simply have a practice in place; HR needs to let employees know about it.

Leadership by HR begins with informing employees about HR practices and explaining the implications of decisions that might be made around these practices. It is not enough to simply have a practice in place; HR needs to let employees know about it. When a company successfully communicates how the whole system of HR practices has been developed and what function this system serves, employees feel they can control and manage what they get out of work.

The evidence supporting the contribution of communication and perception to HR effectiveness is considerable. For example, one study of different business units within a large food-service organization found that employee perceptions of HR practices, rated at the workgroup level, were significant predictors of OCB, commitment, and intention to remain with the company, but the HR practices led to these positive outcomes only if employees were aware they were in place.

The effectiveness of HR practices also depends on employee attitudes. One review found that HR practices were more likely to lead to positive outcomes when employees felt motivated. Practices tend to be perceived differently in various business cultures. For example, the use of educational qualifications in screening candidates seems to be a universal practice, but aside from this, different countries emphasize different selection techniques.

Structured interviews are popular in some countries and nonexistent in others. Communication is the bridge for HR to demonstrate fairness intentions.

Describe the Leadership Role of HR in Organizations (2 of 5)

Designing and Administering Benefit Programs

A benefit program should:

Be suited to the organizational culture.

Reflect the values of the organization.

Demonstrate economic feasibility.

Be sustainable in the long term.

Benefits will likely improve employees’ psychological well-being and therefore increase organizational performance.

The responsibility for designing and administering an organization’s benefit program falls to the HR department, with input from executive management.

Ideally, a benefit program should be uniquely suited to the organizational culture, reflect the values of the organization, demonstrate economic feasibility, and be sustainable in the long term. Such benefits will likely improve employees’ psychological well-being and therefore increase organizational performance.

Describe the Leadership Role of HR in Organizations (3 of 5)

Drafting and Enforcing Employment Policies

Employment policies that are informed by current laws but go beyond minimum requirements will help define a positive organizational culture and set high standards for performance.

Policies differ from benefits in that they provide the guidelines for behavior, not just the working conditions.

Any policy must have enforcement to be effective.

Employment policies that are informed by current laws but go beyond minimum requirements will help define a positive organizational culture and set high standards for performance. Policies differ from benefits in that they provide the guidelines for behavior, not just the working conditions.

Any policy must have enforcement to be effective. Human resource managers are responsible for setting the organizational consequences of infractions, and often for enforcing the policies as well. Sometimes, human resource managers will need to take action even when the employee’s direct manager may not agree, especially if compliance with the law is at issue.

Describe the Leadership Role of HR in Organizations (4 of 5)

Managing Work-Life Conflicts

Gained momentum in the 1980s as a result of the increased entry of women in the workforce.

Keeping workloads reasonable, reducing work-related travel, and offering on-site quality childcare are examples of practices that can help manage work-life conflicts.

Different people prefer different solutions.

Work-life conflicts grabbed management’s attention in the 1980s, largely as a result of the growing number of women, with dependent children, entering the workforce. In response, most major organizations took actions to make their workplaces more family friendly. They introduced on-site childcare, summer day camps, flextime, job sharing, leaves for school functions, telecommuting, and part-time employment.

Organizations are modifying their workplaces with scheduling options and benefits to accommodate the varied needs of a diverse workforce. But it’s the psychological incursion of work into the family domain, and vice versa, when people are worrying about personal problems at work and thinking about work problems at home. This suggests organizations should spend less effort helping employees with time-management issues and more helping them clearly segment their lives. Keeping workloads reasonable, reducing work-related travel, and offering on-site quality childcare are examples of practices that can help in this endeavor. Not surprisingly, people differ in their preference for scheduling options and benefits. Some prefer organizational initiatives that better segment work from their personal lives, as flextime, job sharing, and part-time hours do by allowing employees to schedule work hours less likely to conflict with personal responsibilities. Others prefer ways to integrate work and personal life, such as on-site childcare, gym facilities, and company-sponsored family picnics.

Describe the Leadership Role of HR in Organizations (5 of 5)

Mediations, Terminations, and Layoffs

Human resource departments often take center stage when unpleasant events such as disputes, substandard performance, and downsizing occur.

Employees need to be able to trust their human resource professionals to maintain appropriate confidentiality and a balanced perspective.

Managers need to be able to trust HR, too, to know the laws and represent the company’s perspective.

Human resource departments often take center stage when unpleasant events such as disputes, substandard performance, and downsizing occur. Employees need to be able to trust their human resource professionals to maintain appropriate confidentiality and a balanced perspective. Managers need to be able to trust HR, too, to know the laws and represent the company’s perspective. The HR human resource professional should be well trained in mediation techniques and rely upon company policies to seek positive resolution.

Sometimes, human resource managers are integral to the termination process, when employees are not able to resolve issues with management. Termination processes are subject to union labor contracts and laws, which can confound the situation. In Spain, for instance, labor laws have traditionally protected older workers with near-guaranteed employment.

For departing employees, the HR department is often the last stop on their way out the door. HR managers are thus in charge of leaving a favorable impression with the employee and collecting helpful input from the exit interview. This is never more true than when organizations terminate employees in layoffs.

In sum, the role of HR is increasing for organizations worldwide, and top management is realizing human resource leadership is needed to create the cultures and positive business outcomes top corporations need to stay competitive.