1. Human Resource Policies and Practices17
Human Resource Policies and Practices

2. Learning Objectives
Define initial selection and identify the most useful methods.
Define substantive selection and identify the most useful methods.
Define contingent selection and contrast the arguments for and against drug testing.
Compare the four main types of training.
Contrast formal and informal training methods.
Contrast on-the-job and off-the-job training.
Describe the purpose of performance evaluation and list the methods by which it can be done.
Show how managers can improve performance evaluations.
Describe how organizations can manage work-family conflicts.
Show how a global context affects human resource management.

3. Applicant receives job offer
The Selection Process
Initial Selection
Substantive Selection
Contingent Selection
Applicants who don’t meet basic requirements are rejected.
Applicants who meet basic requirements, but are less qualified than others, are rejected.
Applicants who are among best qualified, but who fail contingent selection, are rejected.
Applicant receives job offer
The most important HR decision is whom to hire
As we saw in the previous chapter on culture, the decision about whom to hire is a very important one. The chart in this slide helps to outline a process by which to hire someone. There are three levels outlined – initial selection, substantive selection, and contingent selection – during each selection step, the applicant pool gets smaller and smaller and the criteria of moving to the next level gets more and more difficult. Let’s look at these steps in more detail.
E X H I B I T 17-1
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4. Stage 1: Initial Selection
Initial selection methods are used to determine if basic qualifications for the job are met
Methods include:
Application Forms
Good initial screening (check)
Must be careful about questions asked – legal issues
Background Checks
Most employers want reference information, but few give it out – litigation (legal)worries
Letters of recommendation are of moderate worth
May use criminal record or credit report checks
Initial selection uses devices to determine if the basic qualifications for the job are met. Some tools you can use include application forms and background checks.
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5. Stage 2: Substantive Selection
These methods are core to the selection process
Written Tests
Testing applicants for: intelligence or cognitive ability, personality, integrity, and interests
Intelligence tests are the best predictor across all jobs
Performance-Simulation Tests
Based on job-related performance requirements
Work Sample Tests
Creating a miniature replica of a job to evaluate the performance abilities of job candidates
Assessment Centers
A set of performance-simulation tests designed to evaluate a candidate’s managerial potential
Substantive selection devices are the key components of the selection process. Some devices used in this step are written tests to test for intelligence, personality, integrity, or interests. The intelligence tests have been found to be the best predictor across all jobs. Another method used in this step is performance simulation tests that provide a written or simulated test that measures performance on the job-related tasks.
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6. Another Substantive Selection Device
Interviews
Are the most frequently used selection tool
Carry a great deal of weight in the selection process
Can be biased toward those who “interview well”
Types of Interviews
Unstructured (randomly chosen questions)
Most common, least predictive, and prone to bias
Structured (standardized sets of questions)
More predictive of job success; less chance for bias
Behavioral structured (asking how specific problems were handled in the past)
Past behaviors may be good predictors of future behavior
Interviews most often used to determine organization-individual fit
The most commonly used substantive selection device is the interview. It often carries a lot of weight in the hiring process, but it is biased toward those who interview well. Some different types of interviews may lend different results. The unstructured interview is the most common and least predictive. It is the method of choosing random questions. The structured interview is more predictive of job success. This method selects a set of questions that are used on every applicant. Behavioral-based interviews are rising in use and are good predictors of future behavior. In this type of interview applicants are asked about how they handled a problem or situation in the past to bring out their behaviors utilized to see if they match the organization’s values and preferred behaviors.
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7. Stage 3: Contingent Selection
Final checks before hiring
Drug testing
Controversial: perceived to be unfair or invasive
Supreme Court ruled that this is not an invasion of rights
Expensive but accurate
Alcohol not generally tested for
The third stage is the contingent selection where a few final checks are done before hiring, such as drug testing. This has been a controversial step in the process for some as it is perceived to be invasive. However, the Supreme Court has ruled that it is not an invasion of rights. It can be expensive but very accurate and can help avoid a lot of problems down the road.
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8. Training and Development Programs
Types of Training
Basic Literacy Skills
One half of U.S. high school graduates do not have the basic skills necessary for work
Technical Skills
Focus of most training, especially given the pace of technological change
Interpersonal Skills
Skills like effective listening, communication, and teamwork
Problem-Solving Skills
Help sharpen logic and reasoning, and provide helpful decision-making techniques
Once an employee is hired, it is important that they receive ongoing training and development while employed. Some different types of training programs include the following: Basic literacy skills training is a program that might be necessary because ½ of U.S. high school graduates do not have the basic skills necessary for work.
Technical skills training focuses on training for technical skills needed on the job.
Interpersonal skills training will help to enhance listening, communication, and teamwork.
Problem-solving skills training may help to sharpen the logic and reasoning capabilities of the workforce, which will assist in developing solid decision-making techniques.
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9. What About Ethics Training?
Argument against
Argument for
Values can be learned and changed
Training helps employees recognize ethical dilemmas and issues
Training reaffirms the organization’s expectation that members will act ethically
Personal values and value systems are fixed at an early age
Ethics training is another area that a lot of organizations look at. However, it is more controversial regarding the impact and need for it. Opponents say that personal values and value systems are fixed at an early age so training will not help. Proponents say that values can be learned and changed over time. By training employees, they can better recognize ethical dilemmas and it can also reaffirm how the organization expects employees to behave.
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10. Training Methods Formal Planned in advance with a structured format
Informal
Unstructured, unplanned, and easily adaptable
70% of all current training is of this type
On-the-Job (OJT)
Includes job rotation, apprenticeships, understudy assignments, and formal mentoring programs
May be disruptive to the workplace
Off-the-Job
Classroom lectures, videotapes, seminars, self-study courses, Internet-based courses, role-plays, and case studies
E-Training (computer-based)
Flexible but expensive and not proven to work
There are a number of different training methods including formal, informal, on-the-job and e-training. Managers must determine the organizational culture and the subject matter of the training to decide what best fits the situation. For example, a training session on interpersonal communication would NOT be well suited to e-training.
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11. Individualized Training and Learning Styles
Learning styles differ – so should training method
Learning styles:
Reading
Give them books and reading materials to review
Watching
Let them observe experts modeling the proper behaviors
Listening
Provide lectures or audiotapes
Participating
Let these learners try out the new skills in a safe experimental environment
The styles are not mutually exclusive – employees can learn from multiple styles
Employees will employ different learning styles, so it is essential the training methods are varied. Employees may learn best by reading so that a book would be most helpful; they may learn best by watching so letting them observe experts will work best; they may learn best by listening so a lecture is a well-suited option; or they may learn best by participating so they may need the opportunity to try out the new skills in a safe environment.
Employees may utilize more than one learning style so training methods should take this into account.
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12. Evaluating Training Effectiveness
Many factors determine training effectiveness:
Training method used
Individual motivation
Trainee personality: those with internal locus of control, high conscientiousness, high cognitive ability, and high self-efficacy learn best
Training climate: ability to apply the learning to the job
Once training is complete, it is important to see if it was successful. Many factors influence its effectiveness such as training method utilized, individual motivation of the trainee, the personality of the trainee and how that fits with the trainer and the training situation, and the training climate or the ability to apply the learning to the job. These factors will influence the effectiveness of the training.
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13. Performance Evaluation
Evaluation affects performance level
Purposes of Performance Evaluation:
Provides input to general human resource decisions
Promotions, transfers, and terminations
Identifies skill training and development needs
Provides performance feedback to employees
Supplies the basis for reward allocation decisions
Merit pay increases and other rewards
For OB specialists: the key purposes of performance evaluation are the last two - a mechanism for feedback and reward allocation
Performance evaluation is another aspect of human resource activities that are employed by managers. The performance evaluation will help in making decisions about promotions, transfers, and terminations. If conducted properly, they should also help to identify areas where additional training is needed while it gives feedback to employees on their performance. Finally, it is the basis for reward allocation in the form of merit pay increases, bonuses, and other rewards.
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14. What Do We Evaluate? Individual Task Outcomes
These are the metrics that directly result from employee effort such as sales, turnover, or quality
Behaviors
More and more companies are focusing on behavior in place of production. The three main areas they concentrate on are:
Task Performance
Citizenship
Counterproductivity
Traits
Weak because they don’t reflect productivity; often used, these include attitudes, confidence, and looking busy
When evaluation takes place there are several things being measured. The first is individual task outcomes that takes a look at production, sales, turnover, or quality. Behaviors are also measured in relation to outcomes. This is taking the place of production measurement. Companies are focusing in on task performance, how much the employee fits into the culture as a citizen, and if they are not counterproductive. Finally, traits are often measured even though this is not the best measurement because they are not directly linked to productivity. The traits often measured are attitudes, confidence, and working well with others.
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15. Who Should Do the Evaluating?
Self
Immediate Supervisor
Customers
Subordinates
Peers
Organizations need to determine who is going to do the evaluating. Typically it is done by the immediate supervisor, however, an effective measure of evaluation is utilizing feedback from many different stakeholders. This is called a 360-degree feedback system because it obtains feedback from peers, supervisor, customers, and subordinates to get the full picture of the employee’s performance.
360o Feedback
Includes these and more
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16. Methods of Performance Evaluation
Written Essay
A narrative describing an employee’s strengths, weaknesses, past performances, potential, and suggestions for improvement
Critical Incidents
Evaluating the behaviors that are key in making the difference between executing a job effectively and executing it ineffectively
There are a number of methods of evaluation that are available for use. Written essay and critical incidents are two popular methods. Written essay methods use a narrative format to describe the employee’s strengths, weaknesses, and suggestions for improvement. The critical incident method evaluates the behaviors that are key for job success.
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17. More Methods of Performance Evaluation
Graphic Rating Scales
An evaluation method in which the evaluator rates performance factors on an incremental scale
Keeps up with current policies and regulations 1 2 3 4 5
Completely Unaware
Fully Informed
The graphic rating scale method utilizes an incremental scale that the evaluator uses to rate the employee in comparison to other employees.
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18. Performance Evaluation Method
Punctuality 1
Never late for work 2
Late 1-2 times per month 3
Late 3 or more times per month
Behaviorally Anchored Rating Scales (BARS)
Scales that 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 on a given job rather than general descriptions or traits.
The Behaviorally Anchored Rating Scale (BARS) uses some components of the critical incident and graphic rating scale but uses examples of actual behaviors for the job measured instead of descriptions or traits.
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19. Even More Evaluation Methods
Forced Comparisons
Evaluating one individual’s performance relative to the performance of another individual or others
Who is “better,” A or B?
Group Order Ranking
An evaluation method that places employees into a particular classification, such as quartiles
10% are A’s, 20% B’s, 40% C’s, 20% D’s, and 10% F’s
Individual Ranking
An evaluation method that rank-orders employees from best to worst
Mary is #1, Juan is #2, Liu is #3…
Forced comparisons rank one employee against another. It can be done on a group order ranking where the employees are placed into particular classifications or through an individual ranking that ranks employees from best to worst.
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20. Suggestions for Improving Evaluations
Use multiple evaluators to overcome rater biases
Halo and leniency (being easy on someone) errors
Evaluate selectively based on evaluator competence
Train evaluators to improve rater accuracy
Provide employees with due process
Individuals are provided with adequate notice of performance expectations
All relevant evidence of a violation is aired in a fair hearing, with the individual given an opportunity to respond
Final decision is based on the evidence and is free of bias
There are some ways to improve evaluations and increase their effectiveness. By using multiple evaluators, rater biases can be reduced. Two types of biases are halo and leniency errors. Halo bias is when an employee has one or two really strong aspects and the rater sees everything as positive as a result. Leniency error occurs when one rater is a lot more lenient than other raters.
By training evaluators and taking evaluator competence into account when making decisions, you can also improve evaluation effectiveness. Finally, by providing employees with “due process” such as letting them know when evaluations are coming, providing a process for when they feel they have been treated improperly, and allowing for a final decision that is based on evidence, you can improve the entire evaluation process.
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21. Providing Performance Feedback
Why Managers Are Reluctant to Give Feedback
They are uncomfortable discussing performance weaknesses directly with employees
Employees tend to become defensive
Employees tend to have an over-confident
assessment of their own performance
Solutions to Improving Feedback
Train managers on how to give
effective feedback
Use performance review as
a counseling activity rather than
as a judgment process
Managers are often reluctant to give feedback because they are uncomfortable addressing weaknesses and employees can become defensive when they do. Also, employees tend to have an inflated assessment of their own performance. By training managers on how to give feedback and using the performance review as a forward-looking process instead of looking at the past, it can minimize the negative reactions.
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22. Managing Diversity: Work-Life Conflicts
Since the 1980s the line between work and personal life has become unclear
Solutions include:
Flexible scheduling and benefits
On-site personal services (like dry cleaning or a gym)
Stress is caused not by time constraints but by the psychological impact of work on family life and vice versa (the opposite)
Some like greater integration (mixing) of work and family; others need greater separation
Work/life conflicts have been on the rise since the 1980s and organizations have had to increase their understanding and corresponding policies regarding this conflict. Some solutions that have been offered are flexible scheduling and benefits, as well as on-site personal services such as dry cleaning or gym facilities.
Research has shown that stress is caused not by time constraints but by the psychological incursion of work into the family aspect of life and vice versa. Some employees will want more integration of work and family, while others want more separation.
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23. Global Implications Selection
Practices differ by nation: global policies need to be changed to fit local customs
Use of educational qualifications may be universal
Performance Evaluation
Not emphasized or considered appropriate in many cultures due to differences in:
Individualism versus collectivism
A person’s relationship to the environment
Time orientation (long- or short-term)
Focus on responsibility
Selection practices and process will differ between countries and corresponding cultures. Performance evaluations also differ greatly because of differences in culture, such as the degree to which the culture focuses on individualism or collectivism or based on their time orientation.
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24. Summary and Managerial Implications
Selection Practices
Proper selection methods increase the likelihood of recruiting the right person for the position
Training and Development Programs
Can be used to improve employee skills
Increase employee self-efficacy
Performance Evaluation
A major goal is to assess an individual’s performance accurately as to make decisions regarding reward allocation
Should be based on behavioral, results-oriented criteria; take a long-term view; and allow employees input into the process
Human resource practices play a significant role in the life of a manager all the way from finding the right employee for the job, training them to do well on the job, and evaluating their performance in a way that encourages growth and development in the employee.
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