1. Effective Management, by Williams South-Western College Publishing Copyright © 2002 Chapter 12 Managing Human Resource Systems

2. Effective Management, by Williams South-Western College Publishing Copyright © 2002 2 What Would You Do? “Personnel Problems” at Magnolia Medical Services 4How do you go about recruiting qualified applicants 4How can selection decisions be made more accurately? 4How do you treat employees fairly?

3. Effective Management, by Williams South-Western College Publishing Copyright © 2002 3 The Human Resource Management Process Adapted From Table 12.1 Recruiting Selection Attracting Qualified Employees Determining Human Resource Needs Human Resource Planning Compensation Employee Separation Keeping Qualified Employees Developing Qualified Employees Training Performance Appraisal

4. Effective Management, by Williams South-Western College Publishing Copyright © 2002 4 After discussing this section, you should be able to: Learning Objectives Determining Human Resource Needs ¬describe the basic steps involved in human resource planning. ­explain how the different employment laws affect human resource practice.

5. Effective Management, by Williams South-Western College Publishing Copyright © 2002 5 Human Resource Planning Forecasting Demand and Supply Human Resource Information Systems

6. Effective Management, by Williams South-Western College Publishing Copyright © 2002 6 The Disadvantages of Teams Workforce Forecasts Internal External Forecasting Methods Direct Managerial Input Best Guess Statistical/Historical Ratios

7. Effective Management, by Williams South-Western College Publishing Copyright © 2002 7 Human Resource Information Systems 4Computerized employee information system 4Uses Ttransaction processing Temployee self-service Tdecision support Adapted From Table 13.2

8. Effective Management, by Williams South-Western College Publishing Copyright © 2002 8 Employment Legislation Federal Employment Laws Adverse Impact & Employment Discrimination Sexual Harassment

9. Effective Management, by Williams South-Western College Publishing Copyright © 2002 9 Federal Employment Laws 4Equal Pay Act of 1963 Tprohibits unequal pay for males and females doing substantially similar work 4Civil Rights Act of 1964 Tprohibits discrimination on the basis of race, color, religion, gender, or national origin 4Age Discrimination Act of 1967 Tprohibits discrimination in employment against persons age 40 and over Adapted From Table 12.3

10. Effective Management, by Williams South-Western College Publishing Copyright © 2002 10 Federal Employment Laws (cont’d) 4Pregnancy Discrimination Act of 1978 Tprohibits discrimination in employment against pregnant women 4Americans with Disabilities Act of 1990 Tprohibits discrimination on the basis of physical or mental disabilities 4Civil Rights Act of 1991 Tstrengthened provisions of the Civil Rights Act of 1964 Adapted From Table 13.3

11. Effective Management, by Williams South-Western College Publishing Copyright © 2002 11 Federal Employment Laws (cont’d) 4Family and Medical Leave Act of 1993 Tpermits workers to take up to 12 weeks of unpaid leave for pregnancy and/or birth of a new child, illness of an immediate family member, or personal medical leave 4National Labor Relations Act 4Occupational Safety and Health Act Adapted From Table 13.3

12. Effective Management, by Williams South-Western College Publishing Copyright © 2002 12 Adverse Impact & Employment Discrimination Disparate Treatment Adverse Impact Four-fifths Rule

13. Effective Management, by Williams South-Western College Publishing Copyright © 2002 13 Sexual Harassment Quid Pro Quo Hostile Work Environment

14. Effective Management, by Williams South-Western College Publishing Copyright © 2002 14 Common Managerial Mistakes Regarding Sexual Harassment 4That the victim must be of the opposite sex 4That harassment can only occur between supervisors and subordinates 4That only victims can file complaints Assuming:

15. Effective Management, by Williams South-Western College Publishing Copyright © 2002 15 After discussing this section, you should be able to: Learning Objectives Finding Qualified Workers ®explain how companies use recruiting to find qualified job applicants. ¯describe the selection techniques and procedures that companies use when deciding which applicants should receive job offers.

16. Effective Management, by Williams South-Western College Publishing Copyright © 2002 16 Recruiting Job Analysis and Recruiting Internal Recruiting External Recruiting

17. Effective Management, by Williams South-Western College Publishing Copyright © 2002 17 Job Analysis and Human Resource Management Job Analysis Job DescriptionJob Specifications HR Subsystems RecruitingSelectionTraining Performance Appraisal Separation Adapted From Figure 14.4

18. Effective Management, by Williams South-Western College Publishing Copyright © 2002 18 Internal Recruiting 4A pool of applicants who already work for the company 4Improves employee morale and motivation 4Reduces employer time and cost 4Job posting 4Career path

19. Effective Management, by Williams South-Western College Publishing Copyright © 2002 19 External Recruiting - Sources 4Advertising 4Walk-ins 4Outside organizations 4Employment services 4Special events 4Internet job sites

20. Effective Management, by Williams South-Western College Publishing Copyright © 2002 20 Selection Application Forms and Resumes Interviews Selection Tests References and Background Checks

21. Effective Management, by Williams South-Western College Publishing Copyright © 2002 21 Topics to Avoid on Application Blanks and During Selection 4Children 4Age 4Disabilities 4Physical Characteristics 4Maiden Name 4Citizenship 4Lawsuits 4Arrest Records 4Smoking 4Medical Conditions

22. Effective Management, by Williams South-Western College Publishing Copyright © 2002 22 References & Background Checks 4Not always provided by employers 4Making checks more effective Tdig deeper Tget permission in writing Tdocument all checks Tconsider hiring a private investigator

23. Effective Management, by Williams South-Western College Publishing Copyright © 2002 23 Selection Tests Personality Biographical Data Work Sample Assessment Centers Cognitive Ability Specific Ability

24. Effective Management, by Williams South-Western College Publishing Copyright © 2002 24 Interviews 4Unstructured Tfree-flow of questions 4Structured Tinterviewer uses standard set of prepared questions 4Semi-structured Tsome structure combined with interviewer judgement

25. Effective Management, by Williams South-Western College Publishing Copyright © 2002 25 What Really Works? Using Selection Tests to Hire Good Employees Cognitive Ability Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success76% Probability of success77% Work Sample Tests

26. Effective Management, by Williams South-Western College Publishing Copyright © 2002 26 What Really Works? (cont’d) Assessment Centers 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success69% Probability of success76% Structured Interviews Using Selection Tests to Hire Good Employees

27. Effective Management, by Williams South-Western College Publishing Copyright © 2002 27 What Really Works? (cont’d) Cognitive Ability + Work Sample Tests 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success82% Probability of success83% Cognitive Ability + Integrity Tests Using Selection Tests to Hire Good Employees

28. Effective Management, by Williams South-Western College Publishing Copyright © 2002 28 What Really Works? (cont’d) 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Probability of success82% Using Selection Tests to Hire Good Employees Cognitive Ability + Integrity Tests

29. Effective Management, by Williams South-Western College Publishing Copyright © 2002 29 After discussing this section, you should be able to: Learning Objectives Developing Qualified Workers °describe how to determine training needs and select the appropriate training methods. ±discuss how to use performance appraisal to give meaningful performance feedback.

30. Effective Management, by Williams South-Western College Publishing Copyright © 2002 30 Training Determining Training Needs Needs Assessment Do this before conducting any training program Training Methods Films & Video Lecture Planned Readings Case Studies Coaching & Mentoring Group Discussions On-the-Job Role Playing Simulations & Games Vestibule Computer-Based- Learning Evaluating Training Reactions Learning Behavior Results

31. Effective Management, by Williams South-Western College Publishing Copyright © 2002 31 Performance Appraisal Accurately Measuring Job Performance Accurately Measuring Job Performance Sharing Performance Feedback Sharing Performance Feedback

32. Effective Management, by Williams South-Western College Publishing Copyright © 2002 32 Accurately Measuring Job Performance Rater Errors Improving Accuracy Improving Appraisal Measures Training Performance Raters

33. Effective Management, by Williams South-Western College Publishing Copyright © 2002 33 Common Rater Errors 4Central tendency Tall workers are rated as being “average” 4Halo error Tall workers are rated as performing at the same level in all parts of their jobs 4Leniency error Tall workers are rated as performing at a high level

34. Effective Management, by Williams South-Western College Publishing Copyright © 2002 34 Improving Appraisal Measures 4Objective performance measures Tquantifiable outcomes 4Subjective performance measures Ttrait rating scales Tbehavioral observation scales (BOS)

35. Effective Management, by Williams South-Western College Publishing Copyright © 2002 35 Rater Training 4Teach raters how to avoid errors 4Increase rating accuracy 4Video training and role playing often used

36. Effective Management, by Williams South-Western College Publishing Copyright © 2002 36 Sharing Performance Feedback 4Managers often fail to effectively give employees performance feedback 4360-degree feedback Tboss, subordinates, peers, and the employee Tbest for employee development 4Effective feedback is essential for employee growth and motivation

37. Effective Management, by Williams South-Western College Publishing Copyright © 2002 37 After discussing this section, you should be able to: Learning Objectives Keeping Qualified Workers ²describe basic compensation strategies and how they affect human resource practice. ³discuss the four kinds of employee separations: termination, downsizing, retirements, and turnover.

38. Effective Management, by Williams South-Western College Publishing Copyright © 2002 38 Compensation Compensation Decisions Pay-level Pay-variability Pay-structure Compensation Decisions Pay-level Pay-variability Pay-structure Employment Benefits Employment Benefits

39. Effective Management, by Williams South-Western College Publishing Copyright © 2002 39 Pay-Level Decisions 4Should workers be paid at, below, or above current market wage Tabove market pay makes it easier for managers to attract and retain employees 4Job evaluation is used to determine the worth of jobs

40. Effective Management, by Williams South-Western College Publishing Copyright © 2002 40 Pay-Variability Decisions 4Piecework 4Commission 4Profit sharing 4Employee stock ownership plans 4Stock options

41. Effective Management, by Williams South-Western College Publishing Copyright © 2002 41 Pay-Structure Decisions 4Hierarchical pay structures Tlarge differences in pay among pay levels Tbetter for independent work 4Compressed pay structures Tfewer pay levels with smaller differences in pay among pay levels Tbetter for interdependent work

42. Effective Management, by Williams South-Western College Publishing Copyright © 2002 42 Employment Benefits 4Compensation other than direct wages 4Legally mandated: Tsocial security, worker’s compensation, and unemployment insurance 4Cafeteria benefit plans Temployees can select from optional benefits 4Payroll deductions

43. Effective Management, by Williams South-Western College Publishing Copyright © 2002 43 Employee Separations Terminations Turnover Downsizing Retirements

44. Effective Management, by Williams South-Western College Publishing Copyright © 2002 44 Terminating Employees 4Often mismanaged 4Minimize problems by: Tfiring should not be the first option Tfiring should be for caused âtermination at will âwrongful discharge Tnote remaining employee morale after a firing

45. Effective Management, by Williams South-Western College Publishing Copyright © 2002 45 Downsizing 4The planned elimination of jobs 4Should be used only as a last resort Tdoesn’t always lead to better company performance 4Offering outplacement services can help employees make adjustments

46. Effective Management, by Williams South-Western College Publishing Copyright © 2002 46 Retirement 4Offer financial benefits to encourage employees to retire 4Are attractive to many employees 4Difficult to predict which or how many employees will use the program 4The company could lose many valuable employees Early Retirement Incentive Programs

47. Effective Management, by Williams South-Western College Publishing Copyright © 2002 47 Employee Turnover 4Loss of employees who voluntarily choose to leave the company 4Functional turnover Tthe loss of poor-performing employees 4Dysfunctional turnover Tthe loss of high performing employees

48. Effective Management, by Williams South-Western College Publishing Copyright © 2002 48 What Really Happened? “Personnel Problems” at Magnolia Medical Services 4Exclusively used external sources 4They developed specialized application blanks and references were checked 4Used job analysis and structured interviews to improve accuracy