1. Chapter Eleven Human Resource Management

2. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 2 Chapter Objectives Explain what human resource management involves. Define the term human capital and identify at least four of Pfeffer’s people-centered practices. Identify and briefly explain the seven steps in the PROCEED model of employee selection. Distinguish among equal employment opportunity, affirmative action, and managing diversity. Explain how managers can be more effective interviewers.

3. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 3 Chapter Objectives (cont’d) Discuss how performance appraisals can be made legally defensible. Compare and contrast the ingredients of good training programs for both skill and factual learning. Specify the essential components of an organization’s policies for dealing with sexual harassment, and alcohol and drug abuse.

4. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 4 Human Resource Strategy: A People-Centered Approach Human Resource Management (HRM) –The proactive acquisition, retention, and development of human resources necessary for organizational success –Moved from a support staff function (personnel) to a more strategic role in organizations Human Capital –All present and future workforce participants who need to develop to their full potential as valuable assets to organizations

5. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 5 Figure 11.1: A General Model for Human Resource Management

6. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 6 Human Resource Strategy: A People-Centered Approach (cont’d) People-centered organizations enjoy a competitive advantage because of people- centered practices: Protection of job security Rigorous hiring process Employee empowerment Compensation linked to performance Comprehensive training Reduction of status differences Sharing of key information

7. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 7 Human Resource Strategy: A People-Centered Approach (cont’d) Recruitment and Selection –“Getting the right people on the bus” –Recruiting for diversity To generate through many different sources a pool of qualified applicants who are demographically representative of the population at large –Networking appears to be the most successful job- hunting method.

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9. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 9 The Selection Process: An Overview Steps in the PROCEED model –Prepare –Review –Organize –Conduct –Evaluate –Exchange –Decide

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11. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 11 Job Analysis and Description Job Analysis –The process of identifying basic task and skill requirements for a specific job by studying superior performers Job Description –A concise document that outlines the role expectations and skill requirements for a specific job

12. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 12 Equal Employment Opportunity (EEO) EEO and Title VII of the Civil Rights Act of 1964 –In virtually all aspects of employment, it is unlawful to discriminate on the basis of race, color, sex, religion, age, national origin, disability, or veteran status. –Selection and all other personnel decisions must be made solely on the basis of objective (job-related) criteria such as the ability to perform or seniority.

13. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 13 Affirmative Action Program (AAP) A plan for actively seeking out, employing, and developing the talents of those groups traditionally discriminated against in employment –Active recruitment of women and minorities –Elimination of prejudicial questions on employment application forms –Establishment of specific goals and timetables for minority hiring –Statistical validation of employment testing procedures

14. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 14 Affirmative Action Program (AAP) (cont’d) From Affirmative Action to Managing Diversity –The objective is to develop an appreciation of interpersonal differences and to create a dominant heterogeneous culture.

15. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 15 Americans with Disabilities Act (ADA) Accommodating the Needs of People with Disabilities –Americans with Disabilities Act of 1990 (ADA) Requires employers to make reasonable accommodations to the needs of present and future employees with physical and mental disabilities ADA Policy Guidelines for Employers –Audit the workplace to eliminate barriers and bias. –Train all managers in ADA compliance and all employees to be sensitive to others with disabilities. –Do not hire anyone who cannot safely perform the basic duties of a particular job with reasonable accommodation.

16. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 16 Recruitment and Selection Employment Selection Tests –Any procedures used in the employment decision process such as: Pencil-and-paper tests Unscored application forms Informal and formal interviews Performance tests Physical, education, or experience requirements –Must be unbiased, statistically valid, and reliable predictors of job success

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19. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 19 Effective Interviewing Interviews are the most common selection tool. Shortcomings of unstructured interviews: –Highly susceptible to distortion and bias –Highly susceptible to legal attack –Legally indefensible if contested –Apparent but no real validity –Not totally job-related and possibly invasive of privacy –Highly inconsistent in application as selection tool –Subject to interviewer bias (e.g., cultural bias) –No feedback about selection errors

20. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 20 Effective Interviewing (cont’d) Structured interviews: A set of job-related questions with standardized answers Question types used in structured interviews: –Situational –Job knowledge –Job sample simulation –Worker requirements Behavioral interviewing: Asking candidates detailed questions about specific behaviors in past job-related situations

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22. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 22 Performance Appraisal –Evaluating individual job performance as a basis for making objective personnel decisions Making Performance Appraisals Legally Defensible –Use job analysis to develop the appraisal system. –Check that the appraisal system is behavior-oriented, not trait-oriented. –Have evaluators follow specific written instructions when conducting appraisals. –Have evaluators review results with the ratees.

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24. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 24 Performance Appraisal (cont’d) Alternative Performance Appraisal Techniques –Goal setting (MBO) –Written essays –Critical incidents –Graphic rating scales Behaviorally anchored rating scales (BARS) –Weighted checklists –Rankings and comparisons –Multirater appraisals –360-degree review

25. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 25 Training –Using guided experience to change employee behavior/attitudes –Training facts 51.4 billion dollars were spent on employee training in 2004. By 2015, employers will face a critical shortage of skilled (“knowledge”) workers. The bulk of training is low-tech, not computer-based.

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27. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 27 The Ingredients of a Good Training Program –Maximize similarity between the training and the job. –Provide as much experience as possible. –Provide a variety of examples. –Label or identify important task features. –Make sure general principles are understood. –Reward trained behaviors and ideas. –Design training content for obvious applicability. –Use questions to guide trainee’s attention.

28. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 28 Skill Versus Factual Learning Effective skill learning ingredients –Goal setting –Modeling –Practice –Feedback Effective factual learning sequence –Goal setting –Meaningful presentation of materials –Practice –Feedback

29. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 29 Discouraging Sexual Harassment Sexual harassment: Unwanted attention that creates an offensive or intimidating work environment –Unwanted physical contact –Gestures, displays, joking, and language It is the manager’s job to be aware of and to correct cases of harassment. Ignorance of such activity is not a valid legal defense.

30. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 30 Discouraging Sexual Harassment (cont’d) What can the victim do? –Live with it –Fight back –Complain to higher-ups –Find another job –Sue the employer Victims win their suits when harassment is severe, witnesses are present, supporting documentation exists, and management is notified but fails to take action.

31. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 31 Discouraging Sexual Harassment (cont’d) What can the organization do? –Practice prevention and remediation Garner top-management commitment to eliminate sexual harassment. Issue a clear sexual harassment policy statement. Provide appropriate awareness training. Establish a grievance procedure for reporting incidents of harassment.

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33. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 33 Controlling Drug and Alcohol Abuse Alcoholism: A disease in which alcohol disrupts one’s normal life Drug abuse costs employers $100 billion each year. The Legal Side of Workplace Substance Abuse –Recovering drug addicts and alcoholics are covered by the Vocational Rehabilitation Act of 1973. –Employers with federal contracts exceeding $25,000 must comply with the Federal Drug-Free Workplace Act of 1988.

34. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 34 Controlling Drug and Alcohol Abuse (cont’d) Referral and Rehabilitation –How to assist an abusing employee Don’t accuse the employee; offer help after the employee self- admits the problem. Don’t “play doctor.” Refer the employee to an employee assistance program (EAP) or community resources for rehabilitation.

35. Copyright © Houghton Mifflin Company. All rights reserved.Chapter Eleven | 35 Terms to Understand Human resource management/development Human capital Job analysis Job description Affirmative Action Program (AAP) Employment selection test Structured interview Behavior-based interview Performance appraisal Behaviorally Anchored Rating Scales (BARS) 306-degree review Training Sexual harassment Alcoholism