1. WORKING WITH EMPLOYEES
Chapter 15

2. “Management Talk”
“What makes us stand out is our heritage as a cooperative and commitment to providing a great work environment. While we work hard to create a challenging and enjoyable work environment, it takes great people to be a best company.”
Wally Smith, REI, President and CEO

3. Objectives
Understand the methods that organizations use to select employees
Explain the difference between a transfer, promotion, and separation
Identify different methods of training employees
Understand the methods that organizations use to measure performance
Explain the process of Management By Objectives
Understand the importance of rewarding employees

4. Understanding Management
REI (Recreational Equipment Inc.) has repeatedly been named to Fortune magazine’s list of “100 best companies to work for in America.”
The outdoors and sporting goods retailer has earned this distinction by offering employees a unique set of benefits, including flexible health, life, and disability insurance plans, an employee profit-sharing plan, and a “challenge grant” program that encourages employees to test REI products on wilderness adventures.

5. Management Skills
Why would employee enthusiasm be important to a company like REI?
If you were publishing a list of the 10 best companies to work for in your town, what things would you take into consideration?

6. Sec. 15.1: Meeting Personnel Needs
What kind of experiences have you had applying for jobs?

7. What You’ll Learn
How companies use methods such as interviewing and testing to select employees
How the human resources department handles employees leaving positions
What training techniques companies develop to teach new concepts

8. Why is this important?
A successful manager must develop effective processes to select, train, and maintain employees”

9. How Companies Select Employees
Human Resources (HR)
A department that recruits employees, manages training and compensation, and plans for future personnel
HR Functions
Advertise positions, select from applicants, fill positions
Develop employee plan in respect to company goals and business environment
Create a Job Description
Written statement identifying the type of work and necessary qualifications for a job
Sets the standards against which applicants can be rated
Online Source: (Career Click)

10. How Companies Select Employees
THINGS LISTED ON A JOB DESCRIPTION:
Essential job functions
Knowledge and critical skills
Physical demands
Environmental factors
Any information that may be necessary to clarify job duties or responsibilities
SAMPLE:
Title: Receptionist
Duties and responsibilities:
Receives and directs phone calls, greets
visitors, receives and sorts mail and
packages, orders office and kitchen
supplies, key documents when required
Qualifications:
High school graduate. Needs good communication skills and ability to get along with people.
Keying speed of 45 words
per minute.
Experience desirable but not
necessary.
Salary: $20,000- $25,000, depending on experience

11. Alternatives to Adding Staff
Freelancers *
Interns
Temporary Workers

12. Freelancers Provide services to business by hourly basis or by the job
Used when full time employment is not needed
Examples: Bookkeepers, accountants, lawyers, graphic designers, window display artists, advertising copywriters, and photographers

13. Interns
Students, who will work for little or no pay in order to gain experience in a particular field
Found in community, local colleges, and high schools

14. Temporary Workers
Can be used for long periods of time as an alternative to full time hiring
Paid a workers salary plus a fee to the agency who supplies the worker
Ex: Seasonal, substitute for injured or sick workers on leave

15. How Companies Recruit Employees
College Placement Centers
Classified Ads
Get the readers attention
Stimulate the reader’s interest
Present a solid specific fact
End ad with a call to action
Most college and universities have them
Collect info on career and employment opportunities
Make them available to students or graduates
No fee is charged
Ask college to make you business listed at their placement center
Find employees for businesses and other institutions
Try to match people with jobs their
looking for to the right business
Charge a fee when they are successful
Employment Agencies

16. How Companies Recruit Employees
Referrals
World Wide Web
Often businesses except referrals from reliable sources on a good applicant for a job their offering
On the world wide web mostly all companies use their business web sites to post job availability and have online applications
Also businesses can mention their location for people to apply
Online Job Search Databases
Post Classified Ads and Resumes

17. The Selection Process Standard Selection Procedures
Preliminary screening
HR Department will sort out hundreds of letters and resumes in response to one classified ad
I.E. – Southwest Airlines receives 129,000 resumes and hires approximately 3,411 people every two years
Applicant pool is narrowed and input from team members is given
Check applicant’s references and credentials
Call for an interview

18. The Selection Process Standard Selection Procedures Testing
Used to differentiate applicants with similar credentials
Provides a uniform evaluation of the qualifications of a prospective employee
Predictive Index (PI)
10-minute personality test is used for effectively hiring and working with employees
Identifies an individual’s strengths and weaknesses
Over 3,000 companies use it (IKEA, Budget Rent-A-Car, colleges, professional sports teams)
Validity and Reliability of Test
Factors relevant to the job
Group of people taking test under similar circumstances get similar results
Remove the element of chance

19. The Selection Process Common Employment Tests Aptitude Test
Measures capacity to learn a particular subject or skill
Psychomotor Test
Measures strength, dexterity, and coordination
Job Knowledge Test
Measures knowledge related to a particular job
Proficiency Test
Measures performance on a sample of the work required in the job
Interest Test
Categorizes applicant’s interests relative to the job
Psychological Test
Attempts to define personality traits
Polygraph Test
Records changes in physical response as a person responds to questions to determine whether responses are truthful

20. The Selection Process Standard Selection Procedures
Employment interview
Allow the employer to learn more about the applicant than can be conveyed in a resume or cover letter
Preparing for an Interview
Setting aside space - Privacy
Putting the applicant at ease – Small talk, Refreshment, Interviewer should be outgoing trained in interviewing skills
Taking control over the interview – take notes to record important points, encourage applicant to talk, but control the direction of discussion

21. The Selection Process Standard Selection Procedures
Employment interview
Structured Interview
Prepare a list of questions when interviewing many applications for one position
Provides uniform information for each applicant
Remind the applicant to cover each question
Where do you want to be in five years?
What are your strengths in working with others?
Unstructured Interview
A conversation between employer and applicant in a relaxed environment
Ask open-ended questions
Why did you leave your previous job?
Tell me about yourself
Applicant has the opportunity to ask questions about the organization
Not always reliable interviews
Pertinent questions may not be covered and bias is a possibility

22. The Selection Process Standard Selection Procedures
Employment interview
First Impressions on personal attributes can be taken into consideration
Halo Effect
Single characteristic dominates the interviewer’s impression of the applicant
(I.E.) - Pleasant Personality dominates the perception of the applicant and other concerns are overlooked
Doesn’t indicate if the candidate is qualified
Applicant with a pleasant personality in an interview is common

23. The Selection Process Standard Selection Procedures Personal judgment
Choosing which individual gets the job
Employer must make a value judgment as to which applicant would be most successful
Follow the selection procedures for effective decision
What if no applicants are qualified?
Offer a higher salary or better benefits to attract more applicants
Re-advertise in a different newspaper or Web site

24. Legal Considerations in Selection
The Wrong Questions
Due to federal law, certain questions cannot be asked of job candidates.
Questions to avoid when interviewing candidates include:
Age (may ask if they are older than a certain age if it is a requirement to of the job [i.e.-school bus driver, forklift operator]
Date of birth
Religion or church affiliation
Father's surname or mother's maiden name
Marital status
What languages they speak (unless it is a job requirement)
How many children they have, their children's ages and who will care for the children while applicant is working
Financial information not related to compensation
If they served in the military of any foreign country
If they have ever been arrested? (may ask if they have been convicted of a felony/misdemeanor)

25. Legal Considerations in Selection
Griggs v. Duke Power Company
African American employees at a power-generating plan objected to the requirement of a high-school diploma or passing an intelligence test as conditions of employment in or transfer to jobs at the plant
Court decided if a test negatively impacts female or minority group applicants, then company must prove validity and prevalence to job requirements
Even if a company does not mean to discriminate, if may unintentionally select an unfair test
Findlaw.com source: GRIGGS v. DUKE POWER CO., 401 U.S. 424 (1971)

26. Legal Considerations in Selection
Albemarle Paper Company v. Moody
North Carolina paper mill was seeking the reversal of a Court of Appeals decision that eliminated its testing program and awarded back pay to a group of African American employees
Managers argued that in addition to creating diversity programs, they had statistical proof that their testing was job-related
Lower court noted that they had made efforts to deal with segregation
Supreme Court agreed with Court of Appeals that the intentions of the company were not the main issue
It held that it was not enough to show that the best workers did well on the tests, or that a testing program improved the overall quality of the work force.
Any tests had to be specifically related to performing the job in question.
Findlaw.com source: ALBEMARLE PAPER CO. v. MOODY, 422 U.S. 405 (1975)

27. Transfers, Promotions, and Separations
HR Department must account for employees leaving positions, as well as new employees being hired
Transfers
Moves an employee into another position within the company
Generally maintains the same level of responsibility and pay
Employee can learn different functions within organization

28. Transfers, Promotions, and Separations
Moving to a position of greater responsibility with higher status and pay
Merit-based and encourage performance
Considerations:
Merit, seniority, or length of service
Performance in current job
How they will adapt to new job (aptitudes and interest)
Peter Principle – possible for employees to be promoted until they reach a level at which they can no longer perform
Employee has “risen to her level of incompetence”
Will gain a mediocre employee and lose a competent one through inappropriate promotion

29. Transfers, Promotions, and Separations
Separations - Final way in which an employee leaves a position
Voluntary – employee resigns
Exit Interview – pinpoints reasons why an employee is leaving
Involuntary – employee is laid-off or terminated
Layoffs – there is not enough work for all employees
Result of downsizing to increase efficiency
Employee can be called back
Termination – employee is asked to leave because of poor performance or failure to follow company rules
Failures from previous actions of training, counseling, and/or disciplinary action
Last result
Possible reassignment to a less stressful job will eliminate the waste of company resources and time invested in hiring and training that individual

30. Training Employees
A way for employees to learn new concepts, gain new skills, or update existing ones
Training can be to entire organization if a new way of operating a business function is implemented (I.E. - District 211 Online Gradebook)
Provide meaningful training
Positive reinforcement
Feedback regarding progress
Encourage learning by setting standards and measuring performance
Outback Steakhouse, the Australian-themed franchise
Monthly video conference meetings to all kitchen staff
Forum to discuss cooking and menus
Serving techniques to food handling

31. Training Employees On-the-Job Training Job Rotation
Employee works and trains under close supervision until he or she understands the task and performs it correctly
Job Rotation
Cross-Training: a form of on-the-job training that exposes employees to several jobs within an organization
Perform each job for a fixed period
Allows employee to master many skills

32. Training Employees Vestibule Training
Training area is set up with equipment similar to that used in the actual job
Employees learn and practice in a simulated work environment
Used to train cashiers, bank tellers, clerks, and technicians
Creating training area can be expensive
Can the employee adapt to working in the “real” environment, with all its pressures, when training end?

33. Training Employees Apprenticeship Training
Time-tested form of on-the-job training
Experienced worker (mentor) passes on skills to an assistant
Skilled occupations
Carpentry
Mechanics
Physicians

34. Training Employees Classroom Training
Presents general information about the organization, rules, safety, and job concepts in a classroom setting
Lectures, Q & R, Open Discussion
Allows for information to be shared with large groups at low cost
2-hour Bus Driving Re-fresher Courses (Mandatory)

35. Training Employees Computer-based Training
Internet Training in the classroom or on an individual basis, contributes to employee development at a low cost
View material at computer workstations and answer questions at their own pace
Electronic learning will grow to approx. $23.7 billion by this year (Source: International Data Corporation)

36. Percentage of Organizations Using Various Methods for Employee Training
Source: Adapted by B. Filipczak, “What Employers Teach,” Training 29, no. 10 (1992) p Lakewood Publications, Minneapolis, MN.

37. Extension Activity!!!
Have students interview personnel directors (at the school or in a business) about what types of interviews they conduct and what general traits they look for in new hires.
Have students use the Internet to research and compare career tests

38. 15. 1: Chapter Summary
The employee selection procedure includes screening, testing, and interviewing
Employees may leave a position through transfers, promotions, or separations
Methods of employee training include on-the-job training, vestibule training, apprenticeship, classroom training, and computer-based training

39. Sec. 15.2: Rewarding Performance
What types of rewards will you work for and why?
Predict what are the most effective rewards and what their importance is in the business world.

40. What You’ll Learn Why is this Important?
Four different methods of evaluation employee performance
Why is it important to provide feedback to employees
How to connect a reward system to performance evaluation
Why is this Important?
“Reward systems are developed to maintain employee motivation. It is necessary to evaluate performance and provide feedback to produce positive results.”

41. How is Performance Measured?
Rewarding employees motivates them to do their best
Employers must show appreciation to retain qualified employees
America West Airlines
Offers employees a $50 bonus for every month in which the company ranks in the top three major airlines in either on-time performance or lack of customer complaints
Performance Assessments
Identify problem areas and guides employee’s future efforts

42. How is Performance Measured?
Performance measures:
An employee’s degree of accomplishment and results in job-related tasks
Effort that an employee exerts on the job
Role perception:
Employee must understand his or her part in an organization

43. How is Performance Measured?
Management By Objectives (MBO)
Process often used in quality improvement and goal setting for the whole organization as well as performance appraisal
Empowers employees by involving them in personal goal setting
Establishes well-defined job objectives
Develops an action plan
Allows employees to implement the action plan
Evaluates achieved performance-based objectives
Takes necessary corrective action
Establishes new objectives for the future

44. How is Performance Measured?
Management By Objectives (MBO)
Should be clear and straightforward
Challenging and incentives for improvement
Manager and employee should agree on objectives that are fair and realistic
Sample Objectives
To answer all customer complaints in writing within three days of receipt of complaint
To reduce order-processing time by two days within the next six months
To implement the new computerized accounts receivable system by August 1
How do these sample objectives meet that standard?

45. How is Performance Measured?
Production Standards
Used when something can be counted or measured
Set an expected level of output
Employees compare their production with this standard

46. How is Performance Measured?
Essay Appraisal
Manager describes the employee’s performance in a written narrative
A form which includes questions such as:
Describe, in your own words, this employee’s performance
What are his or her strengths and weaknesses?
Writing Skills are necessary
May be subjective and difficult to defend against accusations of unfairness

47. How is Performance Measured?
Critical-Incident Appraisal
Manager records specific situations that reflect the employee’s performance, behavior, and attitudes on the job
Used as a basis for appraisal and feedback
Produces large volume of material and recording is time-consuming
Problems of subjectivity based on the likeability of the employee by the supervisor

48. Providing Feedback
Managers must explain results to employees, especially if there is negative feedback
The Successful Appraisal Interview
The following factors contribute to the success of the appraisal interview:
Employee involvement
Recognition and praise
Manager and employee work together to set improvement goals
Discussion of problems
Avoidance of heavy criticism
Encourage the employee to voice opinions
Opportunity for employee to prepare for interview
Perception that good performance will be rewarded
How could these factors help to achieve the goal of motivating an employee to improve?

49. Legal Considerations Title VII of the Civil Rights Act
Requires that an organization’s performance appraisal system be “bona fide.”
System can’t have disproportionately negative effects upon minorities, women, or older employees
An appraisal system that is fair and legal should:
Be based on Job Descriptions
Emphasize performance rather than personal traits
Communicate appraisal results to employees
Allow employee response
Train mangers in conducting proper evaluation
Ensure that appraisals are written and documentation is retained
Be consistent

50. Organizational Reward System
Intrinsic Rewards
Intangible and internal to the individual
Extrinsic Rewards
Controlled and distributed by the organization
Child Day Care
Basketball Courts
Weekly softball games
Fitness Center
Intrinsic Rewards
Extrinsic Rewards
Sense of achievement
Feelings of accomplishment
Informal recognition
Job Satisfaction
Personal Growth
Status
Formal Recognition
Fringe Benefits
Incentive Programs
Base Wages
Promotion
Social Relationships

51. Relating Rewards to Performance
Free Enterprise System
Rewards should be related to performance
Merit-pay – salary increases are based on performance appraisals
Other rewards not based on performance
Across-the-board pay – salary increases of a fixed percentage
Insurance plans
Paid leave
Sick leave
Personal Leave
Emergency Leave
Paid Vacation Leave
Discounts

52. Online Source: 1998 InfoWorld Compensation Survey

53. 15. 2: Chapter Summary
Performance is the degree of accomplishment in completing job-related tasks measured by results
Performance can be evaluated by MBO, production standards, essay appraisal, and critical-incident appraisal
Supervisors should provide feedback to employees
The organizational rewards system includes intrinsic and extrinsic rewards
Rewards should be based on performance

54. Writing Skills
How would you use the Management By Objectives process to form an achievement plan for the rest of your school year?

55. Assessing Team Skills
You are the head of human resources at a monthly teen magazine. The Midwest region needs a new fashion writer for its magazine. You posted an ad in local newspapers and have received resumes and writing samples from many qualified applicants. Still, the interviewing editor has turned down every potential employee that she has interviewed. Her interviewing style is informal, and you believe that his is the problem.
With your team, explain the potential dangers of the informal interview, including sample interview questions. Then, propose the alternative of a more formal interview including sample interview questions. Finally, explain why you think this method may provide positive results in the search.

56. Internet Skills
Using the Internet, read 10 to 15 job listings in an industry and career that interests you. Then make a list of the top 10 traits you find from the advertisements.