Chapter 9Chapter 9

Managing Human Resources Managing Human Resources and Diversityand Diversity

HRMHRM• No longer called “Personnel”No longer called “Personnel”• Strategic ImportanceStrategic Importance• Legal ImportanceLegal Importance

Goals of HRMGoals of HRM• Find the Right People (Find the Right People (Attract Attract an an

effective work force)effective work force)• Manage Talent (Manage Talent (Develop Develop an effective an effective

work force)work force)• MaintainMaintain an effective work force an effective work force

Environmental Influences on Environmental Influences on HRMHRM

• Competitive StrategyCompetitive Strategy

• Mergers/Acquisitions/Downsizing Mergers/Acquisitions/Downsizing

• GlobalizationGlobalization

• Automation Automation

• Population ChangesPopulation Changes

• Federal LegislationFederal Legislation

Human Resource PlanningHuman Resource Planning

• Set goals based on such factors as:Set goals based on such factors as:– Demand for products or servicesDemand for products or services– Available labor marketAvailable labor market– Available financial resourcesAvailable financial resources

Internal RecruitingInternal Recruiting

• Candidates familiar Candidates familiar with the organizationwith the organization

• Less CostlyLess Costly• Generates commitment / Generates commitment /

moralemorale

External RecruitingExternal Recruiting

• Brings in new skills, ideas, etc.Brings in new skills, ideas, etc.• Lack of established personal relationships Lack of established personal relationships

may be desirablemay be desirable• Approaches:Approaches:– AdsAds

– State or Private employment agenciesState or Private employment agencies

– College Placement OfficesCollege Placement Offices

– Job fairsJob fairs

– Employee referralsEmployee referrals

Realistic Job Preview (RJP)Realistic Job Preview (RJP)

• Both Positive and Negative information Both Positive and Negative information about job and organizationabout job and organization

• Reduces turnover.Reduces turnover.

Suggestions for Successful Suggestions for Successful Interviewing (as a Candidate)Interviewing (as a Candidate)• Thoroughly pre-scout the employerThoroughly pre-scout the employer• Make a good first impressionMake a good first impression• Ask permission to take notesAsk permission to take notes• Think before answering questionsThink before answering questions• Ask pertinent questionsAsk pertinent questions• Watch your non-verbal behaviorWatch your non-verbal behavior• Send a follow-up letter within 24 hrs. (to Send a follow-up letter within 24 hrs. (to

interviewer and anyone else involved in hiring)interviewer and anyone else involved in hiring)

Training and DevelopmentTraining and Development

• On-the-job training (OJT)On-the-job training (OJT)

• Orientation Orientation

• Classroom trainingClassroom training

• Programmed instructionProgrammed instruction

• Computer-based instructionComputer-based instruction

Performance Appraisals Performance Appraisals Provide:Provide:

• Consequences to EmployeesConsequences to Employees

• Information to EmployeesInformation to Employees

• Information to ManagementInformation to Management

Performance AppraisalsPerformance Appraisalsare used for:are used for:

CompensationCompensation 85.6%85.6%

Performance FeedbackPerformance Feedback 65.165.1

TrainingTraining 64.364.3

PromotionPromotion 45.345.3

Personnel PlanningPersonnel Planning 43.143.1

Retention/DischargeRetention/Discharge 30.330.3

ResearchResearch 17.217.2

(600 Organizations Surveyed)(600 Organizations Surveyed)

Performance Appraisal Performance Appraisal InaccuraciesInaccuracies

• StereotypingStereotyping

• Lack of InformationLack of Information

• Halo Error Halo Error

• Homogeneity (Leniency, Central Homogeneity (Leniency, Central

Tendency, or Strictness)Tendency, or Strictness)

• Recency EffectsRecency Effects

Improving Performance Improving Performance Appraisal TechniquesAppraisal Techniques

• Keep Better Records Keep Better Records • Use RankingsUse Rankings• Multiple Raters, e.g., “360-degree Feedback”Multiple Raters, e.g., “360-degree Feedback”

(including self-evaluation, peer review, (including self-evaluation, peer review, customer feedback, etc.)customer feedback, etc.)

• MBOMBO• Behaviorally Anchored Rating Scales (BARS)Behaviorally Anchored Rating Scales (BARS)

BARSBARS

OutstandingOutstanding

55 If customer has defectiveIf customer has defectivemerchandise, will arrange for repairsmerchandise, will arrange for repairs

44 Shares complete information onShares complete information onreturn policiesreturn policies

33 Will remember to say “shop againWill remember to say “shop againwith us”with us”

22 Delay customer without explanationDelay customer without explanation

11 Be rude and disrespectfulBe rude and disrespectful

UnsatisfactoryUnsatisfactory

Compensation DecisionsCompensation Decisions

• Wage LevelWage Level– Organization as a whole in comparison to Organization as a whole in comparison to

similar onessimilar ones

• Wage and Salary StructureWage and Salary Structure– Differences between job typesDifferences between job types

• Individual DifferencesIndividual Differences– Due to performance, experience, education, Due to performance, experience, education,

etc.etc.

Compensation DecisionsCompensation Decisions

Wage LevelWage Level– Available ResourcesAvailable Resources– Philosophy, CulturePhilosophy, Culture– Market RatesMarket Rates– Legal (minimum wage, etc.)Legal (minimum wage, etc.)

Job EvaluationJob Evaluation

Wage and Salary StructureWage and Salary Structure– Point SystemPoint System• SkillSkill

• EffortEffort

• ResponsibilityResponsibility

• Job ConditionsJob Conditions

(Determines typical or average pay for a job, (Determines typical or average pay for a job, not a specific individual)not a specific individual)

BenefitsBenefits

• 1/3 to 2/3 of labor costs 1/3 to 2/3 of labor costs (Every $1.00 you (Every $1.00 you pay your employee is costing you at least pay your employee is costing you at least $1. 50)$1. 50)

• Cafeteria-Style Benefit Packages:Cafeteria-Style Benefit Packages: recent recent trend (All employees do not need/want trend (All employees do not need/want the same exact benefits)the same exact benefits)

TerminationsTerminations• Use exit interviewsUse exit interviews• Treatment of departing employees affects Treatment of departing employees affects

remaining workers.remaining workers.

Benefits of Promoting DiversityBenefits of Promoting Diversity

• Develop potential of individuals and the Develop potential of individuals and the organization and producing enhanced organization and producing enhanced creativity and adaptabilitycreativity and adaptability

• Able to recruit the best employees (by having Able to recruit the best employees (by having a larger pool)a larger pool)

• Successful interaction in marketplace (i.e., Successful interaction in marketplace (i.e., relate to customers)relate to customers)

Costs of Ignoring DiversityCosts of Ignoring Diversity• Reduced productivity and creativityReduced productivity and creativity

• Corporate image tarnished Corporate image tarnished

• Financial: lose resources invested in Financial: lose resources invested in recruiting and training when a dissatisfied recruiting and training when a dissatisfied employee leavesemployee leaves

Ethnocentrism vs. Ethnocentrism vs. EthnorelativismEthnorelativism

• Ethnocentrism = Ethnocentrism = belief that one’s own belief that one’s own group or subculture group or subculture is superioris superior

• Ethnocentric Ethnocentric viewpoints produce a viewpoints produce a Monoculture Monoculture which which assumes that there’sassumes that there’s only one way to think only one way to think and to do things.and to do things.

• Ethnorelativism = Ethnorelativism = Belief that groups Belief that groups and subcultures are and subcultures are inherently equal.inherently equal.

• Ethnorelativism Ethnorelativism leads to Pluralism leads to Pluralism which accommodates which accommodates several subculturesseveral subcultures

The Changing WorkplaceThe Changing WorkplaceIncreasingIncreasing::• Older Workers---------Older Workers---------

• Women--------------------Women--------------------

• Non-Whites--------------Non-Whites--------------

(White males now (White males now make up less than make up less than 40% of the workforce.)40% of the workforce.)

20052005::15% ages 55+15% ages 55+

(20% by 2015)(20% by 2015)(12% in 1990)(12% in 1990)

47% (47% in 2010) 47% (47% in 2010) (45% in 1990)(45% in 1990)

27%27%(34% in 2008) (34% in 2008) (22% in 1990)(22% in 1990)

Women in Fortune 500 Companies Women in Fortune 500 Companies – 1999 vs. 2002 vs. 2005 vs. 2010– 1999 vs. 2002 vs. 2005 vs. 2010

• Female CEOs: 3 vs. 6 vs. 8 (13 in 2010)Female CEOs: 3 vs. 6 vs. 8 (13 in 2010)• Female Senior Officers: 12.5% vs. 15.7% vs. Female Senior Officers: 12.5% vs. 15.7% vs.

16.4% (25.9 in 2010)16.4% (25.9 in 2010)• Companies with more female officers Companies with more female officers

averaged higher averaged higher return on equityreturn on equity and total and total return to shareholdersreturn to shareholders than did those with than did those with fewer female officers.fewer female officers.

------------------------------------------------------------------------------------------------------------------------------(Female-owned businesses employ more (Female-owned businesses employ more people than all Fortune 500 companies people than all Fortune 500 companies

combined)combined)

Age Distribution of U.S. Labor Age Distribution of U.S. Labor Force, 2002 and 2012Force, 2002 and 2012

AgeAge• Mixed Results on Job PerformanceMixed Results on Job Performance• Citizenship Behaviors - Improve with ageCitizenship Behaviors - Improve with age• Job Satisfaction - Increases with ageJob Satisfaction - Increases with age

Projected Racial/Ethnic Makeup of Projected Racial/Ethnic Makeup of the U.S. Workforce 2012the U.S. Workforce 2012

ImmigrantsImmigrants• By 2006, immigrants will account for half of all By 2006, immigrants will account for half of all

new U.S. workers. new U.S. workers.

• They are 50% more likely than Americans to They are 50% more likely than Americans to have a graduate degree. have a graduate degree.

• Almost 25% of all U.S. residents holding PhDs Almost 25% of all U.S. residents holding PhDs in science and engineering are foreign-born. in science and engineering are foreign-born.

Equal employment opportunity Equal employment opportunity (EEO)(EEO)

• An EEO employer does not discriminate An EEO employer does not discriminate on the basis of race, religion, national on the basis of race, religion, national origin, gender, age. handicaporigin, gender, age. handicap

• Government oversight by the Equal Government oversight by the Equal Emp. Opp. Commission (EEOC).Emp. Opp. Commission (EEOC).

Affirmative ActionAffirmative Action• Goes further than EEO to attempt to Goes further than EEO to attempt to

remedy past injusticesremedy past injustices

• Greatest efforts required of firms doing Greatest efforts required of firms doing business with the government and/or business with the government and/or having been convicted of past having been convicted of past discriminationdiscrimination

• May or may not involve quotasMay or may not involve quotas

The Glass Ceiling The Glass Ceiling • Minorities and women in organizations often Minorities and women in organizations often

find an Invisible barrier preventing rise to find an Invisible barrier preventing rise to top management top management

• Because of a monocultureBecause of a monoculture

• People at the top tend to promote others like People at the top tend to promote others like themselvesthemselves

Sexual HarassmentSexual HarassmentDefinition now goes beyond sex crimes, Definition now goes beyond sex crimes, coercion, offensiveness, etc., to include coercion, offensiveness, etc., to include anything creating anything creating feelingsfeelings of harassment of harassment

Management Approaches to Management Approaches to Addressing Harassment Addressing Harassment

Increase SensitivityIncrease Sensitivity and and

Take Disciplinary ActionsTake Disciplinary Actions

• Company diversity programsCompany diversity programs

• Complaint and grievance proceduresComplaint and grievance procedures

• Written policy statementsWritten policy statements

• WorkshopsWorkshops

• LecturesLectures

• Role-playing exercisesRole-playing exercises