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Chapter 11 Managing Human Resource Systems
MGMT6© 2014 Cengage Learning
© 2014 Cengage Learning
11-1 explain how different employment laws affect human resource practice
11-2 explain how companies use recruiting to find qualified job applicants
11-3 describe the selection techniques and procedures that companies use when deciding which applicants should receive job offers
11-4 describe how to determine training needs and select the appropriate training methods
11-5 discuss how to use performance appraisal to give meaningful performance feedback
11-6 describe basic compensation strategies and discuss the four kinds of employee separations
© 2014 Cengage Learning
Federal Employment Laws
© 2014 Cengage Learning
Employers may not discriminate in employment decisions based on sex, age,
religion, color, national origin, race, disability.
Bona fide occupational qualification (BFOQ)
“reasonably necessary to the normal operation of that particular business.”
11-1
Major Federal Employment Laws
• Equal Pay Act of 1963• Title VII of the Civil Rights Act of 1964• Age Discrimination in Employment Act of 1967• Pregnancy Discrimination Act of 1978• Americans with Disabilities Act of 1990• Civil Rights Act of 1991• Family and Medical Leave Act of 1993• Uniformed Services Employment and
Reemployment Rights Act of 1994
© 2014 Cengage Learning 11-1
Adverse Impact and Employment Discrimination
• Disparate treatment
• Adverse impact
• The four-fifths rule
© 2014 Cengage Learning11-1
Sexual Harassment
© 2014 Cengage Learning
A form of discrimination in which unwelcome sexual advances, request for sexual favors, or other verbal or physical
conducts of a sexual nature occurs.
•Quid pro quo sexual harassment
•Hostile work environment
11-1
What Should Managers Do?
• Respond immediately
• Write a clear sexual harassment policy
• Establish clear reporting procedures
• Be aware of local and state laws and enforcement agencies
© 2014 Cengage Learning 11-1
Job Analysis and Recruiting
© 2014 Cengage Learning
A purposeful, systematic process for collecting information on the important
work-related aspects of a job.
•Work activities•Tools and equipment used to do to the job•Context in which the job is performed•The personnel requirements for performing the job
11-2
Results of Job Analysis
© 2014 Cengage Learning
• Job description– a written description of the basic tasks, duties,
and responsibilities required of an employee holding a particular job
• Job specification– a summary of the qualifications needed to
successfully perform a job
11-2
Using Job Analysis, Descriptions, Specifications
• Used throughout the staffing process to ensure that selection devices and decisions are job-related.
• Job analyses, descriptions, and specifications help companies meet legal requirements that HR decisions be job-related.
© 2014 Cengage Learning 11-2
Internal Recruiting
The process of developing a pool of qualified job applicants from people
who already work within the company.
• Job posting
• Career path
© 2014 Cengage Learning 11-2
External Recruiting
Process of developing a pool of qualified job applicants from
outside the company.
•Advertising•Employee referrals•Walk-ins•Outside organizations•Employment services•Special events•Internet job sites
© 2014 Cengage Learning11-2
Selection
• Selection– the process of gathering information
about job applicants to decide who should be offered a job
• Validation– the process of determining how well a
selection test or procedures predict future job performance
© 2014 Cengage Learning 11-3
Application Forms and Résumés
• Application forms may only ask for valid, job-related information
• Résumés pose a problem because of false data.
© 2014 Cengage Learning 11-3
References and Background Checks
© 2014 Cengage Learning
• Employment references– contacting previous employers or coworkers to
learn more about the candidate
• Background checks – used to verify accuracy of information that
applicants provide about themselves
11-3
Getting Background Information
• Conduct criminal record checks• Ask applicants to sign a waiver to
check references, run a background check, or contact people with knowledge of work history
• Ask applicants if there is anything they want the company to know
• Consider hiring a private investigator
© 2014 Cengage Learning 11-3
Selection Tests
• Specific ability tests• Cognitive ability tests• Biographical data (biodata)• Work sample tests (performance
tests)• Assessment centers
– in-basket exercise– leaderless group discussion
© 2014 Cengage Learning11-3
© 2014 Cengage Learning 11-3
© 2014 Cengage Learning 11-3
Interviews• Unstructured interviews
• Structured interviews
• Semistructured interviews
© 2014 Cengage Learning 11-3
Structured Interview Questions
• Situational questions
• Behavioral questions
• Background questions
• Job-knowledge questions
© 2014 Cengage Learning 11-3
© 2014 Cengage Learning 11-3
Training and Training Needs
• Training– providing opportunities for employees
to develop the job-specific skills, experience, and knowledge they need to do their jobs or improve their performance
• Needs assessment– the process of identifying and
prioritizing the learning needs of employees © 2014 Cengage Learning 11-4
© 2014 Cengage Learning 11-4
E-Learning
• Advantages– reduce travel costs– increase productivity– decrease employee stress
• Disadvantages – not always the appropriate method– not effective for changing behavior or developing
problem- solving skills – require significant investment in technology– many employees find it boring and unengaging
© 2014 Cengage Learning 11-4
Evaluating Training
© 2014 Cengage Learning
• Reactions
• Learning
• Behavior
• Results
11-4
Performance Appraisal
The process of appraising how well employee are doing their jobs.
© 2014 Cengage Learning 11-5
Accurately Measuring Job Performance
• Objective performance measures– measures of performance that are
easily and directly counted or quantified (output, scrap, sales, etc)
• Subjective performance measures– require that someone judge or assess a
worker’s performance
© 2014 Cengage Learning 11-5
© 2014 Cengage Learning 11-5
Rater Training
• Frame-of-reference training– a group of trainees learns how to do
performance appraisals by watching a video of an employee at work and then evaluating the person’s performance
– a trainer shares his or her evaluations, and trainees’ evaluations are compared with experts’
– expert explains his or her evaluation– process repeated until the differences are
minimized© 2014 Cengage Learning 11-5
Sharing Performance Feedback
• 360-degree feedback– feedback comes from four
sources: the boss, subordinates, peers and coworkers, and the employees themselves
© 2014 Cengage Learning11-5
© 2014 Cengage Learning 11-5
Improving Performance Reviews
• Separate developmental feedback from administrative feedback
• Performance appraisal feedback sessions should be based on employee self-appraisals
• What people do with the feedback matters; it helps if people discuss their performance feedback with others, and discuss it with people who provided it
© 2014 Cengage Learning 11-5
Compensation
The financial and nonfinancial rewards that organizations give employees in
exchange for their work.
© 2014 Cengage Learning 11-6
Compensation Decisions
Pay-level decisions• Decisions about whether to pay
workers at a level above, below, or at current market wages.
• Job evaluation– determines the worth of each job by
determining market value of skills required to perform it
© 2014 Cengage Learning 11-6
Compensation Decisions
Pay-variability decisions• The extent to which employees’ pay
varies with individual and company performance
• Piecework• Commission• Profit sharing• Employee stock ownership plans (ESOP)• Stock options
© 2014 Cengage Learning11-6
Compensation Decisions
Pay-structure decisions• Concerned with internal pay
distribution
• Hierarchical pay structures• Compressed pay structures
© 2014 Cengage Learning 11-6
Employment Separation
A broad term covering the loss of an employee for any reason.
•Involuntary separation•Voluntary separation
© 2014 Cengage Learning 11-6
Terminating Employees
• In most situations, firing should not be the first option.
• Employees should be fired only for a good reason (wrongful discharge).
• Employees should always be fired in private.
© 2014 Cengage Learning 11-6
Downsizing
The planned elimination of jobs in a company.
May actually decrease productivity and lead to loss of skilled workers.
© 2014 Cengage Learning 11-6
Guidelines for Conducting Layoffs
© 2014 Cengage Learning
• Provide clear reasons and explanations for the layoffs. • To avoid laying off employees with critical or irreplaceable
skills, knowledge, and expertise, get input from human resources, the legal department, and several levels of management.
• Train managers in how to tell employees that they are being laid off (i.e., stay calm; make the meeting short; explain why, but don’t be personal; and provide information about immediate concerns such as benefits, finding a new job, and collecting personal goods).
11-6
Guidelines for Conducting Layoffs
© 2014 Cengage Learning
• Give employees the bad news early in the day, and try to avoid laying off employees before holidays.
• Provide outplacement services and counseling to help laid-off employees find new jobs.
• Communicate with employees who have not been laid off to explain how the company and their jobs will change.
11-6
Retirement
• Early retirement incentive program (ERIP)– offer financial benefits to employees to
encourage them to retire early. – reduces number of employees, lowers costs,
creates new openings
• Phased retirement– employees transition to retirement by
working reduced hours before completely retiring
© 2014 Cengage Learning 11-6
Employee Turnover
The loss of employees who choose to leave the company.
•Functional turnover
•Dysfunctional turnover
© 2014 Cengage Learning 11-6
<click screenshot for video>
Barcelona Restaurant Group
1. List the three main activities of human resource management (HRM) and identify which activity is examined at length in the video.
2. Of the various steps in Barcelona’s employee selection process, the job interview is the most brief. Do you agree with the company’s approach to interviewing? Why or why not?
3. Describe Barcelona’s three-stage process for matching job applicants with its organizational objectives, and explain how each stage reveals the fit between job applicants and the needs of the restaurant.
© 2014 Cengage Learning