Management A Practical Introduction Third Edition Angelo Kinicki & Brian K. Williams Manager’s Toolbox: Keeping Employees Invested In Their Jobs Summary Successful managers keep their employees invested in their jobs and performing well. To do this, they meet with their employees regularly, discuss their accomplishments, and where they want to go. The focus of the discussion should be on employee strengths. For Discussion: What would make you a successful employee? How would you like a meeting with your boss to go? What type of feedback would be most helpful to you?

Chapter 9: Human Resource Management Getting the Right People for Managerial Success Strategic human resource management The legal requirements Recruitment & selection Orientation, training, & development Performance appraisal Compensation & benefits Promotions, transfers, disciplining, & dismissals

9.1 Strategic Human Resource Management HOW DO MANAGERS MANAGE THEIR MOST IMPORTANT RESOURCE? The activities managers perform to plan for, attract, develop, and retain an effective workforce is human resource management The economic or productive potential of employee knowledge and actions is human capital Human capital is now seen as being important to a company’s competitive advantage The economic or productive potential of strong, trusting, and cooperative relationships is called social capital

Two Important HR Concepts Human Capital: the economic or productive potential of employee knowledge. Highly educated, knowledgeable workers are the hardest to find and the easiest to loose. “smart people gap” Social Capital: the economic or productive potential of strong, trusting and cooperative relationships. This includes goodwill, mutual respect, trust, and cooperative relationships. Good relationships within an organization outrank many other factors in importance for employees McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

9.1 Strategic Human Resource Management Figure 9.1: The Strategic Human Resource Management Process

9.1 Strategic Human Resource Management Predicting future employee needs means that the manager needs a good understanding of what personnel the organization might need and likely sources for the personnel Managers should assume that the organization will change, and so then will staffing needs, and that personnel might come from inside or outside the firm Some companies create a human resource inventory (tracks employees by name, education, training, languages, and other important information) which is used when considering inside employees for new positions

9.1 Strategic Human Resource Management Companies that engage in strategic human resources planning develop a systematic, comprehensive strategy for understanding current employee needs and predicting future employee needs Because companies need to understand the current employee situation before they can plan for the future, they do a job analysis (determine, by observation and analysis, the basic elements of a job) and write a job description (summary of what the holder of the job does and why), and a job specification (description of the minimum qualifications a person must have to do a job successfully)

9.2 The Legal Requirements Of Human Resource Management WHAT LEGAL ISSUES DO MANAGERS NEED TO BE AWARE OF? Managers need to be familiar with laws related to: 1. Labor relations – especially laws relating to unions 2. Compensation & benefits - the Fair Labor Standards Act of 1938 established minimum living standards for workers engaged in interstate commerce, including provision of a federal minimum wage

Determining HR Needs Prepare HR Inventory Prepare Job Analysis Job Description Objectives of job Type of work Duties & responsibilities Job Specifications Min qualifications required Assess Future Demand Assess Future Supply Establish Strategic Plan recruiting, selecting, training, developing, appraising, compensating, etc. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

9.2 The Legal Requirements Of Human Resource Management 3. Health & safety - there is a growing body of law designed to protect employees from hazardous work conditions 4. Equal employment opportunity - the Equal Employment Opportunity Commission covers discrimination, affirmative action, and sexual harassment -discrimination occurs when people are hired or promoted (or denied hiring or promotion) for reasons not relevant to the job -affirmative action focuses on achieving equality of opportunity within an organization -sexual harassment consists of unwanted sexual attention that creates an adverse work environment

Chapter 9: Human Resource Management CLASSROOM PERFORMANCE SYSTEM Which concept focuses on hiring and promoting for reasons not relevant to the job? A) sexual harassment B) affirmative action C) discrimination D) quid pro quo The answer is C.

9.3 Recruitment & Selection: Putting The Right People Into The Right Jobs HOW DO MANAGERS CHOOSE THE BEST PERSON FOR A JOB? The process of locating and attracting qualified applicants for jobs open in the organization is referred to as recruitment There are two types of recruitment: internal and external Practical Action: Screening Resumes & References This Practical Action explores incentive plans and how they can be designed to support company goals. Successful incentive plans are simple, have clear and realistic goals, are consistent with current goals, and are communicated to employees on a regular basis.

9.3 Recruitment & Selection: Putting The Right People Into The Right Jobs 1. Making people already employed by the organization aware of job openings is called internal recruiting Companies use job postings where information about job vacancies and qualifications is posted on bulletin boards, in newsletters, and on the organization’s intranet to find internal personnel 2. Attracting job applicants from outside the organization is external recruiting The most effective source of external employees is referrals

Internal Recruiting: Advantages/Disadvantages Employees tend to be inspired to greater effort and loyalty The whole process of advertising, interviewing, and so on is cheaper There are fewer risks. Internal candidates are already known and are familiar with the organization Disadvantages: Restricts the competition for positions and limits the pool of fresh talent and viewpoints It may encourage employees to assume that longevity and seniority will automatically result in promotion Whenever a job is filled, it creates a vacancy elsewhere in the organization McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Advantages: Disadvantages: External Recruiting: Advantages/Disadvantages Advantages: Applicants have specialized knowledge and experience Applicants have fresh viewpoints Disadvantages: The recruitment process is longer and more expensive The risks are higher because the persons hired are less well known McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

9.3 Recruitment & Selection: Putting The Right People Into The Right Jobs Because people are often disillusioned after taking a job, some companies provide realistic job previews where candidates are given both positive and negative features of the jobs and the organization before being hired The process of screening job applicants and hiring the best candidate is the selection process There are three types of selection tools: background information, interviewing, and employment tests

9.3 Recruitment & Selection: Putting The Right People Into The Right Jobs 1. Background Information - application forms and resumes are basic sources of information about job applicants 2. Interviewing - can be unstructured (asks probing questions to find out what the applicant is like), or structured (asks each applicant the same questions and compares responses to a standardized set of answers) Lecture Note: Most students will already have a resume prepared. Ask students how accurate their resumes are. Do they feel pressure to embellish their experiences? Why?

Chapter 9: Human Resource Management CLASSROOM PERFORMANCE SYSTEM Which type of interview provides a more accurate assessment of the candidates job-related personality tests? A) structured interview B) unstructured interview C) behavioral-description interview D) situational interview The answer is B.

9.3 Recruitment & Selection: Putting The Right People Into The Right Jobs 3. Employment Tests - legally considered to consist of any procedure used in the employment selection decision process Three common employment tests are: -ability tests - measure physical abilities, strength, stamina, and so on -performance tests - measure performance on actual job tasks -personality tests - measure personality traits like adjustment, energy, sociability, independence, and so on using tests like the Myers-Briggs assessment

9.4 Orientation, Training, & Development HOW DO MANAGERS HELP NEW HIRES BE SUCCESSFUL? Helping newcomers fit smoothly into the job and the organization is referred as orientation Orientation should provide information on: -the job routine -the organization’s mission and operations -the organization’s work rules and employee benefits

9.4 Orientation, Training, & Development Managers can also improve employee performance by providing training and development Training refers to educating technical and operational employees in how to better do their current jobs Short-Term skills oriented Development refers to educating professionals and managers in the skills they need to do their jobs in the future Long-Term career oriented

Typical Areas for Which Employee Training and Development are Given Communications Computer skills Customer service Diversity Ethics Human relations Quality initiatives Safety Sexual harassment McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

On-the-Job and Off-the-Job Training Methods Off-the-Job Methods On-the-Job Methods Coaching—a subordinate is taken under the wing of an experienced employee Training positions—trainees are given positions as assistants to experienced managers Job rotation—employees are given lateral transfers to allow them to work at different jobs Planned work activities—trainees are given important work assignments Classroom programs—used by 91% of companies Videotapes—used by 79% Workbooks or manuals—77% Overhead/opaque transparencies—56% Business books—55% Role playing—55% Other: audiotapes, self-testing instruments, case studies, slides McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

9.4 Orientation, Training, & Development Figure: 9.2: Five Steps in the Training Process

Chapter 9: Human Resource Management CLASSROOM PERFORMANCE SYSTEM Which of the following is the first step in the training process? A) implementation B) evaluation C) selection D) assessment The answer is D.

9.4 Orientation, Training, & Development Training that takes place at work is called on-the-job-training Training that takes place using classroom programs, videotapes, and so on is off-the-job training When computers are used to provide additional help or reduce instructional time, there is computer-assisted instruction

9.5 Performance Appraisal HOW SHOULD MANAGERS ASSESS THEIR EMPLOYEE’S PERFORMANCE? Performance appraisal consists of assessing an employee’s performance and providing him or her with feedback This provides employees with an understanding of how they are doing relative to the firm’s objectives and it helps with their development and training

9.5 Performance Appraisal There are two types of appraisals: 1. Objective appraisals are based on facts and are often numerical 2. Subjective appraisals are based on a manager’s perceptions of an employee’s traits (attitudes, initiative, leadership) or behaviors (specific observable aspects of performance) Most performance appraisals are done by managers, but sometimes information comes from other sources like peers and subordinates

9.5 Performance Appraisal There are two types of feedback: 1. Formal appraisals are conducted at specific times throughout the year and are based on performance measures that have been established in advance 2. Informal appraisals are conducted on an unscheduled basis and consist of less rigorous indications of employee performance

Performance Appraisals Establish Standards Understandable Measurable Reasonable Communicate Standards Evaluate Performance Discuss Results Take Action Corrective Reward Use Results to Make Decisions McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Major Uses of Performance Appraisals Identify training needs Use as a promotion tool Recognize workers’ achievements Evaluate hiring process Judge effectiveness of orientation process Use as a basis for terminating workers McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

How to Give Employees Feedback: Take a problem-solving approach, avoid criticism, and treat employees with respect Be specific in describing the employee’s present performance and the improvement you desire Get the employee’s input McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

How to Give Employees Feedback: If criticism is warranted, criticize the act, not the employee McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 9: Human Resource Management CLASSROOM PERFORMANCE SYSTEM Which of the following types of appraisal is conducted at specific times throughout the year? A) formal B) informal C) structured D) unstructured The answer is A.

9.6 Managing An Effective Workforce: Compensation & Benefits WHAT ABOUT COMPENSATION & BENEFITS? Compensation has three parts: 1. Wages or salaries - the basic wage or salary paid to employees in exchange for doing their jobs is called base pay 2. Incentives - commissions, bonuses, profit sharing, and stock options are all examples of incentives that are paid to top performers to encourage repeat performances 3. Benefits - non-monetary forms of compensation (health care, life insurances, and so on) are benefits that are designed to enrich the lives of employees

Chapter 9: Human Resource Management CLASSROOM PERFORMANCE SYSTEM Health insurance, disability protection, and retirement plans are all examples of A) wages B) incentives C) benefits D) salaries The answer is C.

9.6 Managing Promotions, Transfers, Disciplining, & Dismissals WHO SHOULD BE PROMOTED, WHO SHOULD BE DISMISSED? Deciding who to promote, transfer, or dismiss are all part of the manager’s responsibilities Managers can recognize an employee’s superior performance by giving the individual a promotion When an employee is moved to a different job with similar responsibility, the employee has been transferred

9.6 Managing Promotions, Transfers, Disciplining, & Dismissals Employees that are not meeting expectations may be warned or reprimanded, and then disciplined There are three types of dismissals: -layoffs imply that the dismissal is temporary -downsizing is a permanent dismissal -firing implies that the dismissal is permanent and that there was cause for the dismissal

Employee Replacement Promotion: moving an employee to a higher level position. Transfer: movement of an employee to a different job with similar responsibility. Disciplining & Demotion: poorly performing employees may be given a warning or reprimand and then disciplined. May be temporarily removed from his or her regular job or demoted—having his or her position, pay, and prerequisites taken away. Dismissal: Layoffs Downsizing Firings McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Reasons Why Employees are Transferred Solve organizational problems Broaden managers’ experience Retain manager’s interest and motivation Solve some employee problems McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Practical Action: The Right Way to Handle a Dismissal Give the employee a chance first Don’t delay the dismissal, and make sure it’s completely defensible Be aware how devastating a dismissal can be—both for the individual and to those remaining Offer assistance in finding another job McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Sexual Harassment Sexual Harassment: consists of unwanted sexual attention that creates an adverse work environment. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.

Sexual Harassment Guidelines for preventing sexual harassment: Don’t do uninvited touching, hugging, or patting of someone’s body. Don’t request or suggest sexual favors for rewards related to work or promotion. Don’t make suggestive jokes of a sexual nature, demeaning remarks, slurs, or obscene gestures. Don’t create sexual pictures or displays or written notes of a sexual nature. Don’t laugh at others’ sexually harassing words or behaviors. McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved.