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BAD 64271 Human Resource Management

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Title: BAD 64271 Human Resource Management


1
BAD 64271 Human Resource Management
  • Dr. Cathy DuBois
  • Fall 2002

2
Overarching Goal of HRM
  • Support Organizational Goals

3
HR Policies/Practices
  • Organizational interests
  • factors technological change
  • global competition
  • Social interests
  • factors societal/ economic well-being
  • fairness/demographic changes
  • Employee interests
  • factors focus on self-interests/ actualization
    family structures

4
Evolution of HRM Function
  • 1. File Maintenance
  • Scientific Management
  • Management knows best
  • Human Relations
  • happy worker
  • 2. Government Accountability
  • fairness based
  • stimulated lots of HR research
  • led to improved HR practices

5
Evolution of HRM Function (continued)
  • 3. Organizational Accountability
  • Personnel Human Resource Management
  • sophisticated, research-based HRM
  • 4. Strategic Partnership
  • HR as competitive advantage
  • strategic role of HR function
  • HR competencies
  • value the worker employee empowerment

6
Strategic HRM
  • Aligning HRM practices with
  • organizational mission/strategies/goals
  • organizational culture
  • organizational capabilities
  • environment
  • Key the HR department exists to support
    attainment of organizational goals

7
Strategic HRM
  • Requirements
  • Clear definition of organizational mission,
    culture, strategy, and goals
  • Strong organizational value for planning and
    ongoing evaluation
  • Strong organizational commitment to using the
    organizations human resources as a competitive
    advantage

8
Strategic HRM
  • Requirements (continued)
  • VP of HRM
  • HR VP / staff with state-of-the art HRM knowledge
    and skills (understanding of legal and research
    implications of various practices)
  • HR VP / staff with business knowledge (general,
    organization specific environment)

9
Regulatory Model
  • The Regulatory Model
  • The Regulatory Model applied to EEO

10
EEO Legislation
  • 1963 Equal Pay Act
  • 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
  • 1993 Family and Medical Leave Act

11
Discrimination
  • Discrimination making distinctions
  • 2 kinds of illegal discrimination
  • Disparate Treatment differential treatment of
    protected class individuals
  • Disparate Impact identical treatment of
    protected class individuals, but differential
    outcomes

12
Sexual Harassment (1964 CRA)
  • What constitutes Sexual Harassment?
  • Who are the perpetrators? What is their
    motivation?
  • Employer responsibilities
  • Target (victim) responsibilities

13
Immigration Reform Control Act 1986
  • Employers may not discriminate among U.S.
    citizens because of national origin
  • Employers may discriminate against aliens in
    favor of equally qualified U.S. citizens
  • Employers may not hire illegal aliens
  • exception seasonal workers
  • Employers must validate eligibility of all
    individuals hired

14
Americans with Disabilities Act 1990
  • Protected a physical or mental impairment that
    substantially limits 1 or more of the major life
    activities
  • Reasonable accommodations job access, fob
    design, fob transfer, employee assistance,
    elimination of unnecessary qualifications

15
1991 Civil Rights Act
  • Purposes
  • Reinstate the spirit of the 1964 Civil Rights Act
  • Clarify application of the law in newly relevant
    areas
  • Changes
  • Burden of proof reinstated
  • Specify clearly NO quotas or test score
    adjustments
  • Allow punitive damages with jury trials for
    intentional discrimination lawsuits
  • Applies to US citizens abroad, employed by
    majority US-owned companies

16
Common EEO Misconceptions
  • EEO laws are designed to protect groups, not
    individuals.
  • Reality EEO laws are designed to protect
    individuals who have been discriminated against
    rather than groups.
  • EEO laws require that you hire an unqualified
    minority applicant.
  • Reality EEO laws require that you use job and/or
    business-related selection practices to hire
    qualified individuals

17
Defenses Against Discrimination
  • 1. Job Relatedness- empirical or content validity
  • 2. Business Necessity- the essence of the
    business operation would be undermined by hiring
    a specific group
  • 3. Bona Fide Occupational Qualification (BFOQ)- a
    specific requirement is necessary for successful
    functioning in a job
  • 4. Bona Fide Seniority System- in place for some
    time not designed with intent to discriminate.

18
Proving Adverse Impact
  • Definition of AI seemingly neutral standards are
    applied to everyone, but they have an adverse
    impact on a protected class
  • 4/5 Rule comparison of minority and majority
    selection ratios
  • If the selection ratio for any protected class is
    less than 4/5, or 80, of the selection ratio of
    the majority group- adverse impact

19
Proving Adverse Impact (Cont.)
  • Examples
  • 1. 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)
  • 2. hired/ applied compute for each group
  • Female 3/10 30 Male 30/100 30
  • minority / majority (compare with 4/5)
  • 30 / 30 .30/.30 1 No Adverse
    Impact!

20
Affirmative Action
  • To avoid reverse discrimination charges, adopt a
    voluntary AA policy only if your work force lacks
    diversity
  • Unless under court order, do not specify quotas
  • Your AA policy and practices should not be so
    restrictive as to bar majority applicants
  • Demonstrate support of top management for your AA
    policy hold managers accountable
  • Make your AA policy temporary, only until not
    needed

21
EEO vs. Diversity
  • Incentives
  • Government vs. customer/ labor market
  • Implications
  • Organizational culture
  • Individual employee attitudes
  • Organizational policies
  • Outcomes
  • Organizational
  • Societal
  • Individual

22
How Managing Diversity Can Provide Competitive
Advantage
  • Cost as diversity within orgs increases, those
    without it lag
  • Resource Acquisition attract retain the best
    minorities
  • Marketing effectiveness for target groups
    increases
  • Creativity increases with less conformity to
    past norms
  • Problem Solving broader perspectivesbetter
    decisions
  • System Flexibility diverse systems are more
    fluid, flexible

23
Characteristics Associated with Long-Term
Diversity Program Success
  • Top management provides resources, advocates
    diversity
  • Diversity program is structured
  • Diversity is defined as a business objective
  • Diversity viewed as needed to generate revenue,
    profits
  • Diversity program is evaluated
  • Manager involvement is mandatory
  • Program seen as a culture change
  • Demographic groups not blamed for problems
  • Behaviors/skills needed to interact with others
    are taught
  • Managers rewarded on progress toward diversity
    goals

24
Job Analysis
  • Outputs Job DescriptionJob Specification
  • How is job analysis information used?
  • Many approaches- focus on different types of
    information

25
Job Analysis (Continued)
  • Create Matrix Link Tasks/ Behaviors to KSAOs
  • Strategic use/ prioritization
  • jobs that have changed
  • critical jobs
  • performance deficient jobs
  • entry level jobs/ jobs with large number of
    applicants
  • jots with evidence of adverse impact

26
Job Analysis (Continued)
  • Current challenges in job analysis
  • continually changing jobs
  • flexible jobs
  • team-based jobs

27
Human Resource Planning
  • I. Needs Forecasting
  • 1. Analysis of external conditions/ business
    goals
  • - economic, social, political factors - markets
    and competition
  • - government and legislation - technologies
  • - population and work force
  • 2. Demand Forecast future HR requirements,
    threats
  • opportunities
  • - organization and job design - plans and
    budgets
  • - technologies and systems - management policies
    and philosophy
  • - affirmative action/ EEO goals plans
  • 3. Supply Forecast future HR availability
  • - immediate longer term - external LM relevant
    labor markets
  • - internal labor market employee skill levels,
    performance, succession plans

28
Human Resource Planning (Cont.)
  • II. Program Planning
  • 1. Feasibility Analysis reconcile demand
    supply
  • - identify areas of shortage and surplus
  • - specify recruitment goals and selection plans
  • 2. Performance Management
  • - organization climate, standards, quality of
    work life
  • - reward structures compensation, benefits
  • - performance assessment goals, coaching, work
    evaluation
  • 3. Career Management
  • - policies and systems placement, promotion,
    development, termination
  • - career opportunities, ladders
  • - management succession
  • - individual career planning assistance / support

29
Human Resource Planning
  • Labor Demand
  • derived from service/product demand
  • influenced by labor productivity
  • Labor Supply
  • consider internal and external labor markets

30
Human Resource Planning (Cont.)
  • Labor Markets HR Tactics
  • Tight LM labor demand exceeds labor supply
  • - training or retraining - succession planning
  • - promotion from within - subcontracting
  • - use of part-time/ temporary workers - use of
    overtime
  • Loose LM labor supply exceeds labor demand
  • - pay cuts - reduced hours
  • - work-sharing - voluntary early retirements
  • - inducements to quit (e.g. severance pay)
  • - layoffs

31
Recruiting
  • General Purpose provide an organization with a
    pool of potentially qualified job candidates
  • Specific Purposes
  • increase the pool of qualified applicants with
    minimum cost
  • increase the success rate of selection
  • decrease the probability of turnover
  • meet EEO / social obligations
  • enhance organizational image to public

32
Recruiting
  • External sources / methods
  • - employee referrals (incentives) - walk-ins
  • - employment agencies - schools
  • - trade associations / unions - temporary
    agencies
  • - advertising- newspapers / trade journals -
    internet
  • - professional organizations / conferences
  • Internal sources / methods
  • - promotions - transfers
  • - job rotations - rehires / recalls
  • - organizational career systems - skill
    inventories
  • - replacement / succession systems - job
    posting

33
Recruiting Evaluation
  • Yield Pyramid
  • Criteria
  • 5 above average performance rating
  • 10 1 year survival
  • 50 accepted job
  • 100 qualified and offered job
  • 150 invited for interview
  • 200 potentially qualified
  • 600 number of applicants
  • Compute cost per Hire for each source

34
Recruiting Evaluation
  • Compute Yield Ratios for each applicant source
  • in / out
  • ex applied / interviewed
  • Build Spreadsheet
  • Columns
  • - each step of the recruitment/selection process
  • - performance, turnover
  • - cost per hire
  • Rows each source of applicants

35
Doing Recruitment Well
  • Convey full job information Realistic Job
    Preview
  • Why effective - met expectations
  • - ability to cope
  • - responsibility for decision to accept job
  • Convey rich organizational information
  • Strategic timing of job offer acceptance
    policies
  • Offer flexibility to recruits (but be honest!)
  • Address applicant perception of your hiring
    process
  • Collect data! Evaluate your efforts!

36
Employee Selection
  • Goal person job/organization MATCH
  • Selection is a Technical process
  • Matching process requires Measurement of the
    Person and Job / Organization
  • Measuring the Job/ Organization
  • Job/ Organization analysis
  • Measuring the person TESTS
  • interviews, paper pencil tests, etc.
  • Doing measurement well
  • Reliability Validity

37
Employee Selection Person- Job/ organization match
  • Performance
  • f (Aptitudes / abilities x
  • Skills x
  • Task Understanding x
  • Choice to Perform x
  • Level of Effort x
  • Persistence of Effort x
  • Situational Constraints / Factors)

38
Determinants of Performance
Effort
Personality, values, interests, etc.
Job Knowledge
Performance
Ability
Skill
Experience
Context
39
Determinants of Performance
  • Performance is not 1 thing!
  • Dimensions technical, leadership, communication,
    etc.
  • Job Knowledge
  • declarative, procedural, strategic, self
  • Context
  • task understanding, situational
    constraints/supports
  • Effort
  • choice to perform, level of effort, persistence
    of effort

40
Reliability
  • Consistency of measurement, replicability
  • range 0-1
  • psychological vs. physical measurement
  • person being measured
  • person doing measurement
  • environment
  • for Selection 0.7 acceptable
  • methods to assess repeated measures
  • reliability is necessary for validity

41
Validity
  • Degree to which a test measures what it is
    supposed to measure
  • in selection want to predict from tests which
    applicant will be a good match, which applicant
    will perform well
  • Validation the courts Job Relatedness

42
Validity (continued)
  • Approaches to validation
  • 1. Face validity does the test seem
    reasonable
  • 2. Content validation
  • rational judgement (job experts)
  • test is representative of job/ organization
  • 3. Criterion-related / empirical validation
  • statistical relationship, range -1 to 1
    (correlation)
  • correlation of test score (predictor) with
    measure of job performance (criterion)
  • 0.2 to 0.5 acceptable

43
Reliability and Validity Assessments
  • Summary
  • Reliability and Validity assessments relate to
    whether or not to use a test in a selection
    process
  • Reliability and Validity assessments do not
    relate to assessment of individual applicants
    (i.e., they are not part of determining which
    applicant is the best one to hire)

44
Laws Impacting Selection
  • Goal make the best person- job/ org match and
    minimize chances of a lawsuit
  • Applicable Laws
  • Fair Labor Standards Act Child labor laws
  • State Licensure laws
  • Privacy laws federal and state
  • Polygraph laws
  • Contract laws truth in hiring
  • EEO laws employment discrimination

45
Negligent Hiring Defamation
  • Reference Check Problem
  • Potential employers need information on
    applicants from previous employers, to avoid
    negligent hiring lawsuits
  • BUT
  • Previous employers are wary of giving information
    because of the potential for defamation lawsuits

46
Negligent Hiring
  • An individual acting under the auspices of
    employment caused injury to someone
  • Differs from respondeat superior, wherein the
    employee is acting within the scope of employment
    and injures someone.
  • Jobs that are vulnerable
  • those with a special duty of care

47
Defamation
  • Courts require proof that
  • 1. Defamatory statement was communicated to
    another party
  • 2. Defamatory statement just be a false statement
    of fact
  • 3. Defamatory statement resulted in an injury to
    the defamed individuals reputation

48
Selection Strategies
  • Compensatory all applicants get all tests
    (costly!)
  • (1) applications 200
  • (2) paper pencil tests 200
  • (3) work sample test 200
  • (4) interview 200
  • (5) offers 10
  • Note courts dont accept bottom line defense
    look for adverse impact at each step of the
    process
  • Multiple Hurdle eliminate applicants at each
    step of the hiring process based on whether they
    pass/fail each test (greater potential for
    adverse impact!)
  • (1) applications 200
  • (2) paper pencil tests 120
  • (3) work sample test 40
  • (4) interview 20
  • (5) offers 10

49
Employee Selection
  • Selection Methods
  • tests, interviews, application blanks, etc.
  • Constructs / Attributes
  • cognitive ability, personality, job knowledge,
    etc.
  • Important Can measure constructs/attributes
    with a variety of selection methods
  • Identify relevant constructs, then determine
    which methods you will use to measure them.

50
Employee Selection
  • Selection Methods
  • Information about an individuals past
  • application blanks / bio-data
  • reference checks
  • Written tests
  • cognitive ability
  • achievement/ job knowledge
  • personality
  • honesty
  • graphology

51
Employee Selection
  • Work Sample Tests
  • Assessment Centers
  • Others
  • Physical Measurement
  • Physical Abilities
  • Medical Screening
  • Interviewing
  • Unstructured Interviews
  • Structured Interviews

52
Why cognitive ability predicts Job Performance
  • It is probable that workers with higher levels
    of cognitive ability
  • perform mental tasks more quickly
  • adapt to new situations more readily
  • are more sophisticated in their capacity to
    prioritize rules and regulations
  • are better able to deal with unexpected problems
  • are better able to adapt old procedures to new
    situations

53
The Big 5 Personality Characteristics
McCrae Costa, 1992
  • Conscientiousness
  • planful, dependable, competent, order,
    self-discipline
  • Agreeableness
  • warm, tactful, considerate, trust,
    straightforward,, tender-minded
  • Extroversion/ Sociability
  • gregarious, energetic, warm, self-dramatizing,
    positive emotions
  • Neuroticism/ Adjustment
  • nervous, moody, self-doubting, anxiety,
    self-conscious, vulnerability
  • Culture/ Openness to experience
  • imaginative, curious, original, fantasy, actions,
    ideas

54
Why Selection Interviews usually have Low Validity
  • Questions asked in the Interview
  • unrelated to the job
  • vary from applicant to applicant
  • inappropriate (EEO vulnerability)
  • Interviewer Behaviors
  • fail to put the applicant at ease
  • talk to much!
  • create a poor impression of the company

55
Why Selection Interviews usually have Low
Validity (continued)
  • Interviewer Biases
  • snap judgements made on the basis of inaccurate
    personal biases
  • inappropriate weighting of unfavorable/ favorable
    information neglect of relevant information
  • Standards may vary across interviewers
  • influence of non-verbal behaviors
  • influence of physical attractiveness
  • decisions made hastily due to overconfidence

56
Ways to improve the Interview
  • Use a structured format.
  • Ask questions that are job related.
  • Use situational questions.
  • Use more than 1 interviewer.
  • Ask each applicant the same questions.
  • Train interviewers in rating
  • how to use the rating scale
  • common rater errors
  • halo/hours
  • similar to me
  • leniency/harshness/central tendency

57
Staffing Practices and Organizational Performance
  • 1993 study (Personnel Psychology)
  • Composite staffing index, use of
  • recruiting evaluation
  • validation studies
  • structured interviews
  • cognitive ability tests
  • biographical information blanks
  • Superior staffing practices significantly related
    to
  • Annual Profit
  • Profit growth
  • Overall performance

58
Employee Separations
  • Perspectives
  • Voluntary (quits, retirements)
  • Involuntary (discharges, layoffs)
  • Uncontrollable (spouse transfer, etc.)
  • Controllable (improve HR practices to retain
  • employees)
  • Detrimental (losing valued employees)
  • Beneficial (clearing out poor performers)

59
Termination Issues
  • Justification
  • Amount of Warning
  • Confidentiality
  • Written statement of Benefits (COBRA)
  • Outplacement
  • Timing
  • Tone of Communications
  • Sabotage
  • Worker Safety

60
Alternatives to Layoffs
  • Pay/ Benefit cuts
  • Leaves of absence without pay
  • Employee Loaning
  • Work/Job sharing
  • Reduced work hours (30 hour week)
  • Early Retirements
  • Attrition
  • Training and Transfer
  • Changes in Job Design

61
Success at Work is not 1 thing
  • Behavior
  • Anything people do on the job
  • Performance
  • Those behaviors related to organizational goals
  • Effectiveness
  • How well behavior contributes to accomplishment
    of organizational goals
  • Productivity
  • Cost/benefit ratio of efforts toward
    organizational goal accomplishment efficiency

62
Performance Management
  • The total process of
  • clarifying performance expectations
  • motivating performance, through feedback and
    incentives
  • observing an employees performance
  • in relation to job requirements
  • over a period of time
  • taking steps to facilitate and improve
    performance
  • formally appraising performance

63
Performance Management
  • Performance management is not done once a year
    it is an ongoing process.

64
How to Motivate Employees
  • Address individual differences
  • Properly place employees in jobs
  • Set achievable goals
  • Provide RESOURCES
  • Reward LEARNING Performance
  • Use an equitable system of rewards
  • Provide a variety of rewards individual needs
  • Dont forget money!

65
Compensation Meeting Everyones Needs
66
Compensation Meeting Everyones Needs (continued)
67
Compensation Policy Domains
  • External Competitiveness
  • Internal Consistency
  • Recognizing Individual / Group Contributions
  • System Administration

68
External Competitiveness
  • Fairness compared to what other companies offer
    for the same job
  • Strategic issues
  • Pay policy
  • Lead / Lag / Meet competition
  • Ability to Pay Labor Availability
  • Wage Surveys
  • custom, purchased, public information

69
Internal Consistency
  • Fairness compared to other jobs/employees within
    the organization
  • Job Evaluation process to determine the value
    / worth of each job
  • Build Pay Structure
  • Create systematic structure of pay ranges
  • Pay Ranges min/median/max for each job

70
Job Evaluation Techniques
  • Ranking
  • Rational ordering of wage ranges
  • Comparison with Job Grades
  • Rational matching of job descriptions to set of
    job grade descriptions
  • Point Factor
  • Statistical approach
  • Identify compensable factors and assign points

71
Recognizing Individual/Group Contributions
  • Variable Pay
  • Individual Incentives
  • Seniority
  • Pay-for-Performance for each employee
  • Knowledge-Based Pay
  • Group Incentives
  • Pay-for-Performance
  • Small Group performance
  • Organizational performance

72
Variable Pay
  • Pay that fluctuates according to some
    pre-established criterion (individual /
    organizational)
  • Rationale Risk sharing
  • employee shares risk with the organization
  • Trend
  • use of variable pay in the US is growing
  • current average
  • 5 of an employees pay in the US
  • 20 of an employees pay in Japan

73
Variable Pay (continued)
  • Forms of variable pay
  • Commission
  • Bonus
  • individual merit, reward
  • group gain/ profit sharing
  • Stock
  • examples Microsoft, Wal-Mart
  • Peoples Express, America West

74
Individual Merit Pay Problems
  • De-motivate People
  • distribution rarely perceived as fair politics
  • requires a terrific performance appraisal system
    rare
  • Hurt organizational performance
  • undercut cooperation and teamwork
  • Discourage Risk taking Learning
  • if potential to interfere with reward
  • Destroy intrinsic motivation
  • get employees focused on external rewards

75
Knowledge-Based Pay
  • More pay for more knowledge / skill /
    competencies
  • Rationale
  • incentive for employees to increase their human
    capital
  • get / maintain state-of-the-art in their skills
  • take responsibility for continual learning

76
Knowledge-Based Pay
  • Organizational Responsibility
  • Provide well-structured support for training and
    career development
  • Potential Problems
  • Compensation costs can be high and inefficient
  • People get paid for what they have the potential
    to do rather than for what they actually do

77
Choosing Between Group Individual Incentive
Plans
  • Motivational forces
  • competition/ cooperation
  • Technical Constraints
  • at what level is performance measurable and the
    performing agent identifiable
  • Organizational strategy management values
  • Organization design and working relationships

78
Compensation System Administration
  • Communication
  • to Managers Employees
  • Policy Manuals Presentations
  • Maintaining Fairness
  • System structure
  • Application of the system
  • Across job levels
  • Dealing with exceptions and changes
  • Meeting Organizational Needs

79
Employee Benefits
  • Increasing importance in attracting workers!
  • Cost an additional 25-50 of salary/wages!
  • Legally Required Benefits
  • Social Security, Workers Compensation,
    Unemployment Insurance, Family Medical Leave
  • Voluntary Benefits

80
Benefits
  • Voluntary Benefits
  • Health Insurance
  • Long Term Disability / Death Insurance
  • Retirement Savings Plans
  • Paid Time Off / Unpaid Time Off
  • vacation, sick leave, personal leave, sabbatical,
    ...
  • Employee Services
  • Employee Assistance Program, childcare, legal
    assistance, Wellness Program, food, drycleaning...

81
Benefits Planning Issues
  • Who gets protected/ benefitted?
  • How much choice do employees get?
  • How are benefits financed
  • employer/ employee contribution split
  • How do benefits complement the rest of the
    compensation program
  • base pay and incentives
  • External competitiveness
  • Cost effectiveness

82
Performance Appraisal
  • Purposes
  • 1. Organizational
  • Information for personnel decisions
  • - staffing effectiveness - merit pay
  • - promotions - termination (justification)
  • Connect employee performance to organizational
    goal accomplishment
  • recognition for those on target
  • diagnose performance problems
  • initiate rectification process

83
Performance Appraisal
  • Purposes (continued)
  • 2. Employee
  • Evaluative- feedback regarding past performance
  • Developmental- improvement of future performance
    and career progress
  • Need honest feedback regarding strengths
    weaknesses!

84
Performance Appraisal
  • Three Approaches
  • 1. Compare individual performance to common
    standards
  • Basic rating scales (anchors numbers,
    adjectives)
  • Weakness scale intervals open to interpretation
  • Behaviorally anchored rating scales
  • (BARS, BES, BOS)
  • Strengths clear performance standards/ goals
    objective basis for ratings
  • Weaknesses costly to develop changing jobs...

85
Performance Appraisal
  • Three Approaches (continued)
  • 2. Compare individual performance of individual
  • standards
  • MBO Management by objectives- need employee
    buy-in
  • Strengths clear performance goals
    individualized
  • Weakness goals change! Hard to keep up to date.

86
Performance Appraisal
  • Three Approaches (continued)
  • 3. Compare employees to one another
  • ranking
  • paired comparison
  • forced distribution
  • Weaknesses no performance information/ standards
    can be devastating for low performers open to
    rater bias!
  • Most important, no useful feedback on how to
    improve.
  • Compensation uses for merit money allocation
    practical!

87
Legally Defensible Performance Appraisal System
  • 1. Performance Standards
  • Define them!
  • Base them on job analysis
  • Communicate them to employees
  • Use dimensions of job performance
  • 2. Train raters
  • How to use the PA instrument
  • How to avoid rater errors
  • How to collect data and use it properly
  • How to give feedback

88
Legally Defensible Performance Appraisal System
  • 3. Use more than 1 rater if possible
  • 4. Document extreme ratings particularly well
  • 5. Establish formal appeal process
  • 6. Provide counseling/ training/ assistance for
  • poor performers

89
Why Managers Inflate Appraisals
  • Self-focused
  • Discomfort with giving feedback on poor
    performance
  • Make selves look good / avoid airing problems
  • Avoid a confrontation with hard-to-manage
    employees
  • Promote a disliked employee up / out of the
    department
  • Other-focused
  • Maximize merit increase money for employees
  • Empathy for someone suffering personal problems
  • Avoid creating a permanent record of poor
    performance
  • Encourage someone with marginal prior performance

90
Why Managers Deflate Appraisals
  • Scare better performance out of employees
  • Create reputation as a tough manager
  • Subdue defiant employees
  • Encourage problem employees to quit
  • Create a record to justify a planned firing not
    truly related to performance
  • - downsizing, retaliate against an employee,
    dont like an employee...

91
The New Economy
  • Forces causing shift from old to new economy
  • globalization of wealth and competition
  • introduction of new flexible technologies
  • Competitive standards for organizations and
    nations
  • productivity improvement
  • ability to deliver quality, variety,
    customization, convenience timeliness

92
The New Economy (Continued)
  • Requirements to compete in the new economy
  • new organizational form flexible networks
  • new job structures broader domains flexible
  • new job requirements highly skilled work force
  • new training requirements comprehensive

93
Job Skills in the New Economy
  • Dimensions of skill change
  • - depth of skills
  • - breadth of skills
  • Context for using skills
  • - shift from repetitive to sporadic exceptional
    uses
  • - shift from hands-on to hands-off uses
  • Content of skills
  • - specific skills to general capabilities
  • - concrete skills to abstract skills
  • - objective capabilities to personal/people
    skills
  • Skill convergence

94
Basic Workplace Skills
  • 1. The academic basics
  • reading, writing, computation
  • 2. Communication
  • speaking, listening
  • 3. Adaptability
  • problem solving, creative thinking
  • 4. Developmental skills
  • self learning, self esteem
  • goal setting, motivation
  • personal career development

95
Basic Workplace Skills (continued)
  • 5. Group effectiveness
  • interpersonal skills
  • negotiation
  • teamwork
  • 6. Influencing skills
  • organizational effectiveness
  • leadership skills

96
Training Design Model
  • 1. Assess Organizational Training Climate
  • What does top management think?
  • 2. Determine Training Needs
  • Needs analysis organization, job, person
  • 3. Specify Training Objectives
  • Derive from needs analysis
  • 4. Specify Training Content
  • Derive from objectives

97
Training Design Model (continued)
  • 5. Specify Learning Methods/Media
  • Select what is most appropriate for content,
    learners, setting
  • 6. Specify Conditions of Learning
  • whole/part learning
  • massed/spaced learning
  • over-learning
  • feedback

98
Training Design Model (continued)
  • 7. Evaluate Training Outcomes
  • Reaction, learning, behavior, results
  • Why Training Evaluation skipped
  • top management neglect
  • lack of skills among trainers (statistics, what
    to evaluate)
  • misperceptions of costs/risks associated with
    training evaluation

99
Training Needs Analysis
  • Organization Analysis
  • How does training fit with the companys
    strategic goals?
  • Does the company have the resources to buy or
    develop training?
  • Do managers employees support training?
  • Task Analysis
  • Identify tasks
  • Identify knowledge, skills, and behavior

100
Training needs Analysis (cont.)
  • Person Analysis
  • Is it a training, motivation, or work design
    problem?
  • Who needs training, and what kind?
  • Are employees ready for training?

101
New Employee Orientation
  • 2 Perspectives
  • - Organization
  • - Employee
  • Organizational Implications if dont do it
  • - increased turnover
  • - initial productivity problems
  • task understanding
  • nervous- cognitive drain afraid to ask questions
  • conflicting information from various sources
  • no idea of big picture

102
New Employee Orientation
  • Roles
  • - Executives
  • - Supervisor / Manager
  • - Co-workers
  • - HR/ training

103
Mentoring Functions
  • Career Functions
  • Sponsorship
  • Coaching
  • Protection
  • Exposure
  • Challenging work
  • Psychosocial Functions
  • Role modeling
  • Counseling
  • Acceptance and confirmation
  • Friendships

104
Objectives of Career Management
  • Improved performance on the present work
    assignment
  • Advanced preparation for future work
  • Skill building
  • Experience building
  • Goal selection
  • Developmental attitude

105
Categories of Employee Rights
  • Statutory Rights
  • Protection from discrimination (EEO)
  • Safe working conditions (OSHA)
  • Right to form unions

106
Categories of Employee Rights
  • Contractual Rights
  • Employment contract
  • Union contract
  • Implied contracts/employment policies
  • Other Rights
  • Ethical treatment
  • Privacy (limited)
  • Free speech (limited)

107
Actions which Develop a Climate of Fairness and
Ethical Behavior
  • Do things that develop trust
  • share information, follow through with
    commitments
  • Act consistently
  • dont confuse or surprise employees
  • Be truthful
  • avoid white lies and manipulation of people and
    information

108
Actions which Develop a Climate of Fairness and
Ethical Behavior
  • Demonstrate integrity
  • - keep confidences, show concern for others
  • Define expectations of employees
  • Ensure equitable treatment of employees
  • Adhere to clear, just, reasonable standards
  • Demonstrate respect toward employees

109
Just Cause Standard of Discipline
  • Notification
  • Reasonable Rule
  • Investigation prior to Discipline
  • Fair Investigation
  • Proof of Guilt
  • Absence of Discrimination
  • Reasonable Penalty

110
Progressive Discipline
  • A series of management interventions that give
    employees opportunities to correct undesirable
    behaviors before being discharged.
  • Example
  • verbal warning
  • written warning
  • suspension
  • termination

111
Positive Discipline
  • A procedure that encourages employees to monitor
    their own behaviors and assume responsibility for
    the consequences of their own actions
  • uses a series of steps that increase in urgency
    severity until discharge (similar to progressive
    discipline)
  • threats punishment are replaced by counseling
    motivating the employee to change (a
    decision-making day off withpay, etc.)
  • placing blame on the employee is replaced by
    collaborative problem solving
  • alters the role of supervisor from adversary to
    counselor (requires training for supervisors)

112
Prevent Discipline with HRM
  • HR Planning
  • job descriptions
  • job design
  • Recruitment Selection
  • person/job/organization match
  • valid selection procedures
  • reference checking
  • Compensation
  • fairness appeal mechanisms

113
Prevent Discipline with HRM
  • Training Development
  • orientation
  • skill improvement
  • retraining
  • train managers to be effective
  • Performance Appraisal/ Management
  • clear and reasonable performance standards
  • honest and constructive feedback
  • frequent feedback
  • focus on development

114
Drug Testing
  • Employer Interests
  • Costs absenteeism, accidents, abuse-related
    grievances, sick leave
  • Costs corporate liability for injuries caused by
    persons affected by substance abuse
  • Preservation of favorable employment conditions
    for nonuser employees
  • Employee Interests
  • Preserving personal dignity privacy
  • Gaining protection from disciplinary actions
    where drug testing is not highly reliable

115
Union Legislation
  • National Labor Relations Act, 1935
  • Wagner Act, National Labor Relations Board (NLRB)
  • Established the Right to form Unions
  • Established the Process of How to form Unions
  • Taft-Hartley Act, 1947
  • Regulated unfair union labor practices
  • Permission for states to enact Right to Work
    Laws
  • Landrum-Griffin Act, 1959
  • Protect union members from corrupt union
    activities

116
Decline in Union Membership
  • Facts
  • 1970 31 of workforce
  • 1996 16 of workforce
  • Reasons
  • 1. Changes in the Labor Force the Economy
  • increase of women and minorities
  • shift from manufacturing to service
  • shift of plants to South Southwest
  • global competition cost of unions (wages/jobs)

117
Decline in Union Membership
  • 2. Changing Role of Unions
  • social political advocacy legislation
  • management sophistication in union avoidance
  • strikes more risky for workers
  • 3. Industrial Democracy
  • enlightened management practices
  • worker voice
  • 4. Public Attitudes
  • big labor
  • corruption

118
Changing view of Health Safety
  • Past Employee held liable!
  • Employer defenses used in court
  • Assumption of risk
  • worker knew work was dangerous
  • Fellow-servant rule
  • co-worker caused the accident
  • Contributory negligence
  • employee violated a company work rule

119
Changing view of Health Safety
  • Current Organization Responsible
  • Social values
  • prevent firms from abusing workers- individual
    rights
  • Organizational benefits
  • reduction in insurance premiums
  • savings of litigation
  • fewer wages paid for lost time
  • less expense in training replacement workers
  • more productivity with less overtime
  • attract high quality/productive workers

120
OSHAs Basic Provisions
  • Enforcement Standards
  • National standards from NIOSH
  • General Duty clause
  • requires that for subject areas where no safety
    standards have been adopted, employers have the
    general duty to provide safe healthful working
    conditions
  • Hazard Communication
  • requires that employees have a right to know
    about hazards confronting them at work

121
OSHAs Basic Provisions (continued)
  • Refusing Unsafe Work
  • right of employees to refuse to perform assigned
    tasks because of a reasonable apprehension
    regarding their health safety (coupled with a
    reasonable belief that no less drastic
    alternative is available)
  • Record-keeping requirements
  • accident frequency rates
  • reporting injuries/illnesses

122
4 Approaches to Safety
  • Engineering Eliminate hazard
  • Environment Eliminate hazard
  • Equipment Protect worker
  • Education Worker protects self

123
Systems Approach to Safety
  • Organizational Commitment
  • Coordinated Safety Efforts
  • safety committees
  • employee safety motivation
  • safety discipline
  • safety incentives
  • safety training communications
  • safety inspection
  • accident research

124
Workplace Safety and Health
  • Expanding scope of Employer concerns
  • Job-related safety and health at work
  • white collar SH issues stress, carpal tunnel
  • Non-job related safety and health at work
  • violence in the workplace, AIDS
  • Safety and health outside the workplace
  • wellness promotion
  • EAPs counseling regarding many non-work issues
    (marital/family problems)
  • Drug testing

125
Safety Health Managers Role
  • Monitor and Initiate Actions
  • Facility Design, Job Design Production systems
  • Provide Safety Training and Equipment
  • Keep Accurate Safety Records
  • Do Safety Research
  • Use OSHA, safety engineers, committees, etc.
  • Reinforce Safety Culture
  • Communicate safety standards with employees,
    suppliers,
  • Assess worker accident proneness (hiring on…)
  • Reward safety compliance
  • Overall Quality of Worklife

126
Characteristics of an International Business
Person
  • Cross-Functional Abilities
  • Flexible
  • Adventuresome
  • Confident
  • Proactive
  • Entrepreneurial
  • Socially-Oriented
  • Decisive
  • Ethical
  • Professional Judgement
  • Team Player
  • Patient

127
General Adaptation Actions
  • 1. Identify, analyze and evaluate business
    opportunities
  • 2. Implement business opportunities
  • 3. Optimize utilization of assets
  • 4. Conduct international business transactions
  • 5. Develop and maintain international
    relationships
  • 6. Appraise, respect and participate in diverse
    cultures
  • 7. Communicate!
  • 8. Balance personal life and international
    business career

128
Symptoms of Culture Shock
  • Homesickness
  • Boredom
  • Withdrawal (e.g., spending excessive amounts of
    time reading only seeing other Americans, etc.)
  • Need for excessive amounts of sleep
  • Compulsive eating
  • Compulsive drinking
  • Irritability
  • Exaggerated cleanliness

129
More Symptoms of Culture Shock
  • Marital stress
  • Family tension and conflict
  • Chauvinistic excesses
  • Stereotyping of host nationals
  • Hostility toward host nationals
  • Loss of ability to work effectively
  • Unexplainable fits of weeping
  • Physical ailments (psychosomatic illnesses)

130
Expatriate Compensation
  • Selection assessment for overseas job
  • Training preparation for overseas experience
  • Salary relative to home or host country?
  • Foreign Service Policy
  • round trip airfare
  • housing allowance assistance (home host
    country)
  • goods services allowance

131
Expatriate Compensation (cont.)
  • Foreign Service Policy (continued)
  • education allowance
  • home visitation/ dependent travel
  • auto assistance
  • tax equalization
  • Bottom Line
  • Expatriate employees cost the organization 3 to 5
    times as much as home country employees!
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