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 ObjectivesUnderstand the methods that organizations use to select employeesExplain the difference between a transfer, promotion, and separationIdentify different methods of training employeesUnderstand the methods that organizations use to measure performanceExplain the process of Management By ObjectivesUnderstand 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 SkillsWhy 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 LearnHow companies use methods such as interviewing and testing to select employeesHow the human resources department handles employees leaving positionsWhat 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 personnelHR FunctionsAdvertise positions, select from applicants, fill positionsDevelop employee plan in respect to company goals and business environmentCreate a Job DescriptionWritten statement identifying the type of work and necessary qualifications for a jobSets the standards against which applicants can be ratedOnline Source: (Career Click)
10 How Companies Select Employees THINGS LISTED ON A JOB DESCRIPTION:Essential job functionsKnowledge and critical skillsPhysical demandsEnvironmental factorsAny information that may be necessary to clarify job duties or responsibilitiesSAMPLE:Title: ReceptionistDuties and responsibilities:Receives and directs phone calls, greetsvisitors, receives and sorts mail andpackages, orders office and kitchensupplies, key documents when requiredQualifications:High school graduate. Needs good communication skills and ability to get along with people.Keying speed of 45 wordsper minute.Experience desirable but notnecessary.Salary: $20,000- $25,000, depending on experience
11 Alternatives to Adding Staff Freelancers*InternsTemporary Workers
12 Freelancers Provide services to business by hourly basis or by the job Used when full time employment is not neededExamples: Bookkeepers, accountants, lawyers, graphic designers, window display artists, advertising copywriters, and photographers
13 InternsStudents, who will work for little or no pay in order to gain experience in a particular fieldFound in community, local colleges, and high schools
14 Temporary WorkersCan be used for long periods of time as an alternative to full time hiringPaid a workers salary plus a fee to the agency who supplies the workerEx: Seasonal, substitute for injured or sick workers on leave
15 How Companies Recruit Employees College Placement CentersClassified AdsGet the readers attentionStimulate the reader’s interestPresent a solid specific factEnd ad with a call to actionMost college and universities have themCollect info on career and employment opportunitiesMake them available to students or graduatesNo fee is chargedAsk college to make you business listed at their placement centerFind employees for businesses and other institutionsTry to match people with jobs theirlooking for to the right businessCharge a fee when they are successfulEmployment Agencies
16 How Companies Recruit Employees ReferralsWorld Wide WebOften businesses except referrals from reliable sources on a good applicant for a job their offeringOn the world wide web mostly all companies use their business web sites to post job availability and have online applicationsAlso businesses can mention their location for people to applyOnline Job Search DatabasesPost Classified Ads and Resumes
17 The Selection Process Standard Selection Procedures Preliminary screeningHR Department will sort out hundreds of letters and resumes in response to one classified adI.E. – Southwest Airlines receives 129,000 resumes and hires approximately 3,411 people every two yearsApplicant pool is narrowed and input from team members is givenCheck applicant’s references and credentialsCall for an interview
18 The Selection Process Standard Selection Procedures Testing Used to differentiate applicants with similar credentialsProvides a uniform evaluation of the qualifications of a prospective employeePredictive Index (PI)10-minute personality test is used for effectively hiring and working with employeesIdentifies an individual’s strengths and weaknessesOver 3,000 companies use it (IKEA, Budget Rent-A-Car, colleges, professional sports teams)Validity and Reliability of TestFactors relevant to the jobGroup of people taking test under similar circumstances get similar resultsRemove the element of chance
19 The Selection Process Common Employment Tests Aptitude Test Measures capacity to learn a particular subject or skillPsychomotor TestMeasures strength, dexterity, and coordinationJob Knowledge TestMeasures knowledge related to a particular jobProficiency TestMeasures performance on a sample of the work required in the jobInterest TestCategorizes applicant’s interests relative to the jobPsychological TestAttempts to define personality traitsPolygraph TestRecords changes in physical response as a person responds to questions to determine whether responses are truthful
20 The Selection Process Standard Selection Procedures Employment interviewAllow the employer to learn more about the applicant than can be conveyed in a resume or cover letterPreparing for an InterviewSetting aside space - PrivacyPutting the applicant at ease – Small talk, Refreshment, Interviewer should be outgoing trained in interviewing skillsTaking 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 interviewStructured InterviewPrepare a list of questions when interviewing many applications for one positionProvides uniform information for each applicantRemind the applicant to cover each questionWhere do you want to be in five years?What are your strengths in working with others?Unstructured InterviewA conversation between employer and applicant in a relaxed environmentAsk open-ended questionsWhy did you leave your previous job?Tell me about yourselfApplicant has the opportunity to ask questions about the organizationNot always reliable interviewsPertinent questions may not be covered and bias is a possibility
22 The Selection Process Standard Selection Procedures Employment interviewFirst Impressions on personal attributes can be taken into considerationHalo EffectSingle characteristic dominates the interviewer’s impression of the applicant(I.E.) - Pleasant Personality dominates the perception of the applicant and other concerns are overlookedDoesn’t indicate if the candidate is qualifiedApplicant with a pleasant personality in an interview is common
23 The Selection Process Standard Selection Procedures Personal judgment Choosing which individual gets the jobEmployer must make a value judgment as to which applicant would be most successfulFollow the selection procedures for effective decisionWhat if no applicants are qualified?Offer a higher salary or better benefits to attract more applicantsRe-advertise in a different newspaper or Web site
24 Legal Considerations in Selection The Wrong QuestionsDue 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 birthReligion or church affiliationFather's surname or mother's maiden nameMarital statusWhat 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 workingFinancial information not related to compensationIf they served in the military of any foreign countryIf 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 CompanyAfrican 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 plantCourt decided if a test negatively impacts female or minority group applicants, then company must prove validity and prevalence to job requirementsEven if a company does not mean to discriminate, if may unintentionally select an unfair testFindlaw.com source: GRIGGS v. DUKE POWER CO., 401 U.S. 424 (1971)
26 Legal Considerations in Selection Albemarle Paper Company v. MoodyNorth 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 employeesManagers argued that in addition to creating diversity programs, they had statistical proof that their testing was job-relatedLower court noted that they had made efforts to deal with segregationSupreme Court agreed with Court of Appeals that the intentions of the company were not the main issueIt 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 hiredTransfersMoves an employee into another position within the companyGenerally maintains the same level of responsibility and payEmployee can learn different functions within organization
28 Transfers, Promotions, and Separations Moving to a position of greater responsibility with higher status and payMerit-based and encourage performanceConsiderations:Merit, seniority, or length of servicePerformance in current jobHow 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 performEmployee 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 positionVoluntary – employee resignsExit Interview – pinpoints reasons why an employee is leavingInvoluntary – employee is laid-off or terminatedLayoffs – there is not enough work for all employeesResult of downsizing to increase efficiencyEmployee can be called backTermination – employee is asked to leave because of poor performance or failure to follow company rulesFailures from previous actions of training, counseling, and/or disciplinary actionLast resultPossible reassignment to a less stressful job will eliminate the waste of company resources and time invested in hiring and training that individual
30 Training EmployeesA way for employees to learn new concepts, gain new skills, or update existing onesTraining can be to entire organization if a new way of operating a business function is implemented (I.E. - District 211 Online Gradebook)Provide meaningful trainingPositive reinforcementFeedback regarding progressEncourage learning by setting standards and measuring performanceOutback Steakhouse, the Australian-themed franchiseMonthly video conference meetings to all kitchen staffForum to discuss cooking and menusServing 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 correctlyJob RotationCross-Training: a form of on-the-job training that exposes employees to several jobs within an organizationPerform each job for a fixed periodAllows employee to master many skills
32 Training Employees Vestibule Training Training area is set up with equipment similar to that used in the actual jobEmployees learn and practice in a simulated work environmentUsed to train cashiers, bank tellers, clerks, and techniciansCreating training area can be expensiveCan 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 trainingExperienced worker (mentor) passes on skills to an assistantSkilled occupationsCarpentryMechanicsPhysicians
34 Training Employees Classroom Training Presents general information about the organization, rules, safety, and job concepts in a classroom settingLectures, Q & R, Open DiscussionAllows for information to be shared with large groups at low cost2-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 costView material at computer workstations and answer questions at their own paceElectronic 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 SummaryThe employee selection procedure includes screening, testing, and interviewingEmployees may leave a position through transfers, promotions, or separationsMethods 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 performanceWhy is it important to provide feedback to employeesHow to connect a reward system to performance evaluationWhy 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 bestEmployers must show appreciation to retain qualified employeesAmerica West AirlinesOffers 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 complaintsPerformance AssessmentsIdentify 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 tasksEffort that an employee exerts on the jobRole 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 appraisalEmpowers employees by involving them in personal goal settingEstablishes well-defined job objectivesDevelops an action planAllows employees to implement the action planEvaluates achieved performance-based objectivesTakes necessary corrective actionEstablishes new objectives for the future
44 How is Performance Measured? Management By Objectives (MBO)Should be clear and straightforwardChallenging and incentives for improvementManager and employee should agree on objectives that are fair and realisticSample ObjectivesTo answer all customer complaints in writing within three days of receipt of complaintTo reduce order-processing time by two days within the next six monthsTo implement the new computerized accounts receivable system by August 1How do these sample objectives meet that standard?
45 How is Performance Measured? Production StandardsUsed when something can be counted or measuredSet an expected level of outputEmployees compare their production with this standard
46 How is Performance Measured? Essay AppraisalManager describes the employee’s performance in a written narrativeA form which includes questions such as:Describe, in your own words, this employee’s performanceWhat are his or her strengths and weaknesses?Writing Skills are necessaryMay be subjective and difficult to defend against accusations of unfairness
47 How is Performance Measured? Critical-Incident AppraisalManager records specific situations that reflect the employee’s performance, behavior, and attitudes on the jobUsed as a basis for appraisal and feedbackProduces large volume of material and recording is time-consumingProblems of subjectivity based on the likeability of the employee by the supervisor
48 Providing FeedbackManagers must explain results to employees, especially if there is negative feedbackThe Successful Appraisal InterviewThe following factors contribute to the success of the appraisal interview:Employee involvementRecognition and praiseManager and employee work together to set improvement goalsDiscussion of problemsAvoidance of heavy criticismEncourage the employee to voice opinionsOpportunity for employee to prepare for interviewPerception that good performance will be rewardedHow 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 employeesAn appraisal system that is fair and legal should:Be based on Job DescriptionsEmphasize performance rather than personal traitsCommunicate appraisal results to employeesAllow employee responseTrain mangers in conducting proper evaluationEnsure that appraisals are written and documentation is retainedBe consistent
50 Organizational Reward System Intrinsic RewardsIntangible and internal to the individualExtrinsic RewardsControlled and distributed by the organizationChild Day CareBasketball CourtsWeekly softball gamesFitness CenterIntrinsic RewardsExtrinsic RewardsSense of achievementFeelings of accomplishmentInformal recognitionJob SatisfactionPersonal GrowthStatusFormal RecognitionFringe BenefitsIncentive ProgramsBase WagesPromotionSocial Relationships
51 Relating Rewards to Performance Free Enterprise SystemRewards should be related to performanceMerit-pay – salary increases are based on performance appraisalsOther rewards not based on performanceAcross-the-board pay – salary increases of a fixed percentageInsurance plansPaid leaveSick leavePersonal LeaveEmergency LeavePaid Vacation LeaveDiscounts
53 15. 2: Chapter SummaryPerformance is the degree of accomplishment in completing job-related tasks measured by resultsPerformance can be evaluated by MBO, production standards, essay appraisal, and critical-incident appraisalSupervisors should provide feedback to employeesThe organizational rewards system includes intrinsic and extrinsic rewardsRewards should be based on performance
54 Writing SkillsHow would you use the Management By Objectives process to form an achievement plan for the rest of your school year?
55 Assessing Team SkillsYou 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 SkillsUsing 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.