Professional Documents
Culture Documents
• Personnel Administration
• Scientific Management
• Human Relations movement
• Government regulation
• Human Resources movement
• Strategic human resource management
HRM Practices
• Human Resource Planning
• Job analysis
In a regulatory environment
HRM Responsibility
• Company Leadership
– CEO/ Executive leve
– Front-line management
• Human Resources Professionals
– Executives
– Generalists
– Specialists
Competitive Advantage
• Cost strategy
• Product differentiation
• Link to HR practices
Resource Based View
• Rare
• Valuable
• Imperfectly imitable
• Non-substitutable
Competitive Challenges to HRM
• Global challenge
• Satisfying stakeholders
• Economy
• Legal environment
• Technology advances
• Changing demographics
Human Resource Planning
• Organizational Planning
– Organizational Mission
– Scan environment
– Set strategic goals
– Formulate strategic plans
Sample Mission Statement
Southwest Airlines:
Strategic Uses:
• Improve communication
effectiveness
• Knowledge management
• Support innovation
Intranets must have:
• Effective management
• Culture that supports information sharing
• User training
• Employee empowerment to use
• Organized content
Analyzing HRIS Data
• Data-mining
• Other Statistical Analysis
• Data-warehousing
Examples of Relationships in HRIS
• What are some characteristics of applicants that are
eventually successful in the organization?
• Is there a relationship between merit increases and improved
performance?
• Do benefit selections affect turnover?
• Are there common career paths in the organization?
• Is there a relationship between promotional history and length
of service?
• Are there any attributes that make an employee a productive
telecommuter?
• Is there a relationship between absenteeism and performance?
• Is there a profile of a typically successful employee?
•
Outline of Legal Considerations
• Regulatory Model
• Equal Employment Opportunity
• Workplace Justice Laws
• Pay and Benefit Legislation
• Labor Unions
• Health and Safety
EEO Legislation
• 1964: Title Vll Civil Rights Act
• 1967: Age Discrimination in Employment Act
• 1978: Pregnancy Discrimination Act
• 1986: Immigration Reform & Control Act
• 1990: Americans with Disabilities Act
• 1991: Civil Rights Act
•
Regulatory Model
Regulator Managemen
Concern Agencie
Laws y t
s s
Action Responses
•Fairness issues •Passed by congress •Federal agencies • •
•Economic disparity •Passed by state •State agencies •Rulings •
•Changing material legislature •Independent •Written regulations •Planning compliance
values •Presidential executive •commissions •Complaint strategies
•Interest group agendas orders investigations •Formulating
•Political party mandates • •Technical assistance appropriate HR policies
•Loop-holes in current •Lawsuits •Briefing and training
legislation
•
Challenges to Laws • employees and
managers
•Defending lawsuits
•Working with
government agencies
State Court Federal Court Opinions and lobbying for policy
System System Decisions changes
Types of Discrimination
• Disparate Treatment
Differential treatment of protected class
individuals
• Disparate Impact
Identical treatment of protected class
individuals, but differential outcomes
Defenses Against Discrimination
• Job relatedness
• Business necessity
• Bona Fide Occupational Qualification
• Bona Fide Seniority System
• Voluntary Affirmative Action Program
• Demonstrate no adverse impact
Proving Adverse Impact
• 4/5 Rule - comparison of
minority/majority selection ratio
• If selection ratio is below 4/5 or
80%- then there is adverse impact
Adverse Impact- Examples
#hired/ #applied- compute for each group
Female: 30/100= 30%;
Male: 60/100= 60%
minority % / majority % (compare with 4/5)
30% / 60% = .30/.60 = 0.5 (5/10 or 50%)
Affirmative Action Plans
• Required for Federal Contractors by
Executive Order 11246
• Can also be voluntary
• Never use quota system- unless directed by
courts
• Components:
– Utilization analysis
– Written plan
Employment-at-Will Exceptions
• Violates a law
• Public policy
• Implied contract
• Good faith and fair dealing
Avoiding Wrongful Termination
• Employment-at-Will statement in:
– applications
– offer letters
– employee handbook
• Train managers:
– avoid making commitments or promises
– avoid certain terminology
Employee Handbook
• Employment policies or procedures
• Orientation information for new
employees
• Legal obligations of employer and
employee
• Responsibilities of employer and
employee to each other
Sexual Harassment
• Quid pro quo
• Hostile environment
Tips to avoid:
Human
Job Data Resources
Functions
Methods of
Collecting
Data Job
Specification
Sources of Data
• Job Analyst
• Employee
• Supervisor
• Customer
Methods of Collection
• Interviews
• Questionnaires
• Observations
• Records or Critical Incidents
Data Collected
• Job Content
• Job Context
• Worker Requirements:
–Knowledge
–Skills
–Abilities
Results of Job Analysis
• Job Description
– Tasks
– Duties
– Responsibilities
– Job Specifications
• Knowledge requirements
• Skill requirements
• Abilities needed (including physical
demands)
–
Using Job Analysis Results
• Recruiting and Selection
• Training and Development
• Performance Appraisal
• Compensation
• Productivity improvement
• Employee discipline
• Safety
• Organizational Efficiency
Problems with Job Descriptions
• Not useful if not well-written
• Often not updated
• Could violate law
• Can limit scope of job holder
Recruiting
• Purpose- create pool
• Specifically:
– Minimize cost
– Increase success
– Improve retention
– EEO issues
– Public image
Strategic Issues
• Large number or highly qualified?
• Quick or quality?
• Cost?
• Fill vacancy or start career?
• Public relations?
Steps in Recruiting Process
• Identify opening
• How to fill opening
• Identify targeted population
• Source candidates
• Selection process
Internal Recruitment
• Advantages
– Capitalize on investment
– Increase moral
– Improve retention
• Disadvantages
– Insufficient supply
– “Ripple effect”
– Lack new ideas
Internal Recruiting Process
• Skills database
• Supervisor recommendations
• Career progression system
• Job posting
– Available to all
– Timeliness
– Can de-moralize if not done well
– Confidentiality
External Recruiting
• Employee referrals
• “Walk-ins”
• Recruitment advertising
• Direct recruiting
• Search research
• Contingency search (include temp-to-perm)
• Retained search
• College recruiting
• Non-fee agencies
External Recruiting
• Job Fairs
• Professional Associations
• Internet
– Company website
– Online boards
– Banner advertising
– Using e-mail
Choosing the Right Method
• Depends on:
– Type of job
– Timeframe
– Geographic area
– Cost
– Mix of candidates
• Need to look at:
– Define target market
– What’s worked before?
Doing it Well
• Realistic Job Preview
• Train organizational recruiters
• Convey organizational information
• Timing of process
• Offer flexibility
• Evaluate your efforts
Evaluate your Efforts
• Operating Costs
• Cost per hire
• Yield ratios
– Number of resumes to interviews
– Interviews to offers
– Offers to hires
– Overall
• Retention rates
• Performance rating
Importance of Effective Selection
• Retention
• Productivity
• Reduce training costs
• Legal compliance
Steps in Selection
• Understand organization and job
• Select evaluation process
• Implement selection process
• Make decision
• Background check
• Offer
Legal Considerations
• Equal Employment Opportunity
Commission (EEOC)
– Uniform Guidelines on Employee Selection
Procedures
– National Origin
– Pregnancy discrimination
– Age discrimination
– Religious discrimination
– Disability
Legal Considerations
• Constitutional
– Privacy
• Tort law
– Negligent hiring
– Defamation
• Other
– Fair Credit Reporting Act
Selection Strategy
• Decide what selection devices to use for
each position. (Utility Analysis)
• What order?
• Multiple hurdle or same treatment?
– Example- everyone must pass cognitive
ability test to get to interview OR
– Everyone takes cognitive ability test and
gets interview
Selection Strategy
•Compensatory: all •Multiple Hurdle: weed out
applicants get all “tests” applicants at each step of
(*costly!) the hiring process based
(1) applications 200 on whether pass/fail each
(2) paper & pencil tests 200 “test” (*greater potential
(3) work sample test 200 for adverse impact!)
(4) interview 200 (1) applications 200
(5) offers 10 (2) paper & pencil tests 120
(3) work sample test 40
(4) interview 20
*Note: courts don’t accept “bottom (5) offers 10
line” defense- look for adverse
impact at each step of the process
Reliability
• Consistent/stable
• Over time
• Across different samples
• Across different judges
Validity
• Face validity
• Content validity
• Construct validity
• Criterion related validity
• Validation approaches
– Predictive validation study
– Concurrent validation study
– Validity generalization
Utility Analysis Considerations
• Validity coefficient
• Selection ratio
• Job performance differential
• Cost of test
•
Utility Analysis Example
Expected gain ($) =
(# applicants selected) x (validity) x
(standard deviation of performance) x
(average standardized test score) -
(# applicants tested)(cost of test)
Selection Methods
• Application
• Biodata inventory
• Background investigation
– Drug test
– Reference checks
• Written or Computer-based Tests
• Interviews
Examples of Written or
Computer-based Tests
• Job sample performance tests
– Assessment centers
• Cognitive ability tests
• Psychomotor ability tests
• Personality inventories
• Polygraph or honesty tests
Interview Process
• Phone screening
• Human resources- organization fit
• Hiring manager
• Peers/customers
• “round robin” style
• Lunch, dinner or reception
Types of Interviews
• Pre-screening
• Resume-based
• Structured
• Patterned
• Stress
• Case
• Behavioral
Interviewers Should:
• Be prepared
• Listen
• Take notes
• Avoid common errors:
– similar-to-me
– halo/horn effect
– recency effect
Selection Process-other
• Candidate communications
– Standard/timely
– One person responsible
• Extending offers
– Contingent
– Salary negotiable
– Verbal followed by written
–
Compensation- Why important?
• Cost efficiency
• Legal compliance
• Enhance recruiting
• Improve retention
Equity Theory
• Inputs vs. Outputs
• Variance?
– Decrease inputs
– Request raise
– Change mindset
– Different comparison point
– Escape
• Internal consistency vs. external
competitiveness
Developing a Compensation System
• Job analysis
• Job evaluation
• Market pricing
• Choose compensation method
• Develop pay structure
• Individual adjustments
Job Evaluation- Methods
• Job ranking system
• Job classification system
• Point system
• Factor comparison system
• Hay profile method
Market Pricing
• Focus on external
• Salary surveys
• Pay policy
– Lead
– Match
– Lag
Final steps
• Choose compensation method
– Flat-rate
– Skill-based
– Incentive pay
• Develop pay structure
– Job grades
– Market point
• Individual adjustments
Legal Constraints
• Fair Labor Standards Act
– Exempt vs. non-exempt
• Administrative
• Executive
• Professional
• Sales
– Minimum wage
– Overtime
• Equal Pay Act
– Comparable worth
Designing Benefit Plans
Need to Consider:
• “Vanilla” packages
• Flexible or Cafeteria plans
• Communication
Legal Issues
• Consolidated Omnibus Budget
Reconciliation Act (COBRA)
– continuation of benefits
• Health Insurance Portability
Protection Act (HIPPA)
– eliminates “pre-existing
condition”
New Hire Orientation
• Retain/motivate
• Increase productivity
• Reduce anxiety
• Set expectations
Orientation “Do’s”
• Provide materials in advance
• Provide information on:
– Company
– Social
– Technical
– Physical
• Be efficient
• Spread out
Orientation “Don’ts”
• Emphasize paperwork
• Cause information overload
• Consider “HR’s job”
• Hold hostage
Training Department
• Faculty Model
• Customer Model
• Corporate University
• Virtual Training
Instructional Design Model
Needs Assessment
Levels of analysis:
• Organizational
• Task
• Competency
• Person
Designing the Program
• Instructional objectives
• Assess readiness and motivation
• Select appropriate instructors
• Understand adult learners
– meaningful examples
– individual differences
– practice
– whole vs. parts
– distributive vs. massed
– feedback and reinforcement
–
Select Training Method
• On-the-job
• Job instruction method
• Apprenticeship training
• Lecture
• Case studies
• Role playing
• Behavior modeling
• Computer-based instruction
• Interactive video
Transfer of Training
• Over-learning
• Action plan
• Tie to job
• Follow-up
Evaluating Training
• Employee reactions- “happy sheets”
• Testing
• Performance appraisal
• Organizational performance
• Return on investment
Management Development
• Succession planning
• Development opportunities
• Specific training
Career Stages
• Exploration/establishment
• Advancement
• Maintenance
• Strategic planning or
Disengagement
•
•
Career Development Initiatives
• Career pathing
• Career Planning Workbooks
• Career counseling or workshops
• Mentoring
• Self-selected training opportunities
Performance Appraisal- Goals
• Improve performance
• Support employment decisions
• Ensure legal compliance
• Increase employee satisfaction
Types of Rating Instruments
• Individual performance against common standards
– Graphic Rating Scales
– Behaviorally Anchored Rating Scale
(BARS)
– Behavior Observation Scale (BOS)
• Individual performance against individual standards
– Management by Objectives (MBO)
• Compare employees to one another
– Ranking
– Paired Comparison
– Forced Distribution
Who should evaluate?
• Immediate supervisor
• Peers
• Subordinates
• Self-appraisal
• Customers served
• Multi-rater or 360 degree feedback
Appraisal Meeting
• Ask for self-assessment
• Express appreciation/share
developmental opportunities
• Focus on behavior- not the person
• Be supportive
Effective PA Systems
• Good standards
• Train raters
• Timely- follow policy
• Well documented performance
• Opportunity to respond
• Action plan
Rater Errors
• Recency effect
• First impression error
• Similar-to-me effect
• Halo/horn effect
• Central tendency
The Difficult Employee
• Unsatisfactory quality or quantity of work
– Lack of skills or motivation
– May need to identify and offer correction
– Examine environment
– Disciplinary action
• Personal problems affect job
– Drug or alcohol?
– EAP
– Disciplinary action
The Difficult Employee
• Violate laws
– Investigative process
– Pursue with authorities
– Disciplinary action
• Violate policies
– Educate employees
– Disciplinary action
Disciplinary Process
• Warning system
• Act promptly
• Consistency
• Handle professionally
Progressive Discipline
• Stepped process
– Verbal warning
– Written warning
– Final written warning or suspension
– Termination
• Identify behavior and why it is a problem
• Clear warning and explain consequences
• Document!
Positive Discipline
• Stepped process
• Counseling & motivation replace
threats & punishment
• Collaborative problem solving
• Must train supervisors
Disciplinary Meetings
• Keep private
• Criticize selectively
• Opportunity to respond
• Attack problem, not person
Alternative Dispute Resolution
• Advantages:
– Less time consuming
– Less expensive
– Private
• Components
– Mandatory
– Not binding on employee
– Binding on company
Disputes
• Covered
– Involuntary terminations
– Claims of harassment or discrimination
– Constructive discharge
– Additional disputes
• Not covered
– Benefit or pension claims
– Worker’s compensation
– Unemployment
– Establishment or modification of a policy
ADR Format
• Mediation
• Arbitration
• Summary jury trial
• Mini-trial
• Peer review process
Successful ADR
• Procedures in place
• Arbitrators with expertise
• Employees right to representation
and discovery
• Written opinion
Productivity Improvement
Programs
• Types of rewards
–Extrinsic-Pay for Performance
–Intrinsic- Employee
Empowerment
Expectancy Theory
Effort
Expectancy
Performance X
Instrumentality MOTIVATION
Rewards X
Valence
Pay for Performance must have:
• Effort-performance link
• Performance-reward link
• Valued rewards
• Timeliness of rewards
• Performance- organizational goals link
• Cost-efficient
Types of Plans
• Merit pay
• Gainsharing plans
• Profit sharing plans
• Employee Stock Ownership Plans (ESOP)
• Variable pay plans
Variable Pay Plans
• Piece rate
• Standard hour
• Bonus
• Sales incentives
– Straight commission
– Combined salary/commission
– Draw
Employee Empowerment Plans
• Informal participative decision-making
• Job enrichment
– Skill variety, task identity, task significance,
autonomy, feedback
• Quality circles
• Continuous improvement programs
• Self-managed work-teams
Employee Relations
• Must base initiatives on:
–Organizational size
–Company culture
–Strategic goals
Responsibilities of Employee
Relations Function
• Policies
• Employee retention
• Work/family balance
• EEO Compliance
• Diversity
Policy Development
• Monitor, develop and implement
• Manage performance appraisal
system
• Manage disciplinary action system
Employee Retention Strategy
• Benchmarking
• Attitude surveys
• Union-avoidance
• Wellness programs
• Employee Assistance Program
• Performance counseling
• Service/recognition programs
• Exit interviews
Work/Family Balance
• Flexible work schedules
• Telecommuting
– Who
– Financial support
– Communication
– Social issues
• Day/elder care
EEO Compliance
• Reporting
• Affirmative action plans
• Responds to employees
• Management training
• Legal issues
Diversity Initiatives
• Develops awareness
• Culture building
• Management training
• Employee training
Labor Relations History
• 1700’s craft guilds
• American Federation of Labor (AFL) 1886
• Congress of Industrial Organizations (CIO)
1936 - 1935 35% of workforce
• World War II- growth, AFL-CIO merger
• Drop to currently 14% 1997
Why join a union?
• Economic needs
• Dissatisfaction with management
• Social and status concerns
Structure of Unions
• Local Union
• National Union
• AFL-CIO
Labor Law
• Railway Labor Act 1926
• Norris-Laguardia Act 1932
– No arbitrary court injunctions
– No “yellow dog” contracts
• National Labor Relations Act (Wagner Act) 1932
– Employee’s right to bargain collectively
– Certification/de-certification process
– Right to strike, define ULP’s
– Establish National Labor Relations Board (NLRB)
–
Labor Law, Cont.
• Labor Management Relations Act (Taft-Hartley
Act) 1947
– Employers right to free speech
– No “closed shop”
– President right to seek injunction
– Established Federal Mediation and Conciliation
Service
• Labor-Management Reporting and Disclosure Act
(Landrum-Griffin Act) 1959
– Bill of rights for union members
– Unions cannot discriminate
– Financial reporting requirement
How Unions Organize
• Employer Recognition
–Petition phase
–Election phase
–Union Certification
–Collective bargaining
agreement
Collective Bargaining Agreement