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CHAPTER SEVEN Managing Human Resource Systems. What Would You Do?. You are the senior vice president of HR at Electronic Arts… Videogames are the largest and fastest-growing sector of the entertainment industry It’s your job to make sure that scarce game industry talent signs with EA - PowerPoint PPT Presentation
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1Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
CHAPTER SEVENManaging HumanResource Systems
2Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
What Would You Do?What Would You Do?You are the senior vice president You are the senior vice president of HR at Electronic Arts…of HR at Electronic Arts…
Videogames are the largest and Videogames are the largest and fastest-growing sector fastest-growing sector of the entertainment industryof the entertainment industry
It’s your job to make sure that scarce game industry talent signs with It’s your job to make sure that scarce game industry talent signs with EAEA
You need experienced people, who are both creative and disciplinedYou need experienced people, who are both creative and disciplined
How do you build a pipeline of talent and create a pool of applicants How do you build a pipeline of talent and create a pool of applicants for managerial positions? How do you retain talented people?for managerial positions? How do you retain talented people?
3Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Determining Human Determining Human Resource NeedsResource NeedsAfter reading the next section, you should be able to:
1.1. describe the basic steps involved in human describe the basic steps involved in human resource planning.resource planning.
4Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Employment LegislationEmployment Legislation
FederalEmployment
Laws
Adverse Impactand
EmploymentDiscrimination
SexualHarassment
Laws
1
5Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Federal Employment LawsFederal Employment Laws
Equal Pay Act of 1963Equal Pay Act of 1963
Civil Rights Act of 1964Civil Rights Act of 1964
Age Discrimination inEmployment Act of 1967Age Discrimination inEmployment Act of 1967
Pregnancy DiscriminationAct of 1978Pregnancy DiscriminationAct of 1978
Americans with Disabilities Act of 1990Americans with Disabilities Act of 1990
prohibits unequal pay for males and females doing similar work
prohibits unequal pay for males and females doing similar work
prohibits discrimination on basis ofrace, color, religion, gender, originprohibits discrimination on basis ofrace, color, religion, gender, origin
prohibits discrimination against persons age 40 and over
prohibits discrimination against persons age 40 and over
prohibits discrimination in employmentagainst pregnant women
prohibits discrimination in employmentagainst pregnant women
prohibits discrimination on the basis ofphysical or mental disabilities
prohibits discrimination on the basis ofphysical or mental disabilities
1.1
6Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Federal Employment Laws Federal Employment Laws (cont.)(cont.)
National LaborRelations BoardNational LaborRelations Board
Occupational Safetyand Health ActOccupational Safetyand Health Act
guarantee employees the right toform and join unionsguarantee employees the right toform and join unions
requires employers provide asafe workplace for employeesrequires employers provide asafe workplace for employees
Family & Medical LeaveAct of 1993Family & Medical LeaveAct of 1993
permits workers to take up to 12 weeksof unpaid leave for pregnancy, etc.
permits workers to take up to 12 weeksof unpaid leave for pregnancy, etc.
Civil Rights Act of 1991Civil Rights Act of 1991 strengthened the Civil Rights Act of 1964
strengthened the Civil Rights Act of 1964
1.1
7Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Adverse Impact and Adverse Impact and Employment DiscriminationEmployment Discrimination
Four-FifthsFour-FifthsRuleRule
Four-FifthsFour-FifthsRuleRule
AdverseAdverseImpactImpact
AdverseAdverseImpactImpact
DisparateDisparateTreatmentTreatment
DisparateDisparateTreatmentTreatment
Intentional discrimination that results in equally qualified people being treated differently
Unintentional discrimination that works to the disadvantage of member of protected groups
Comparison of selection rates of a protected to a nonprotected group, to determine if adverse impact has occurred
1.2
8Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Sexual HarassmentSexual Harassment
HostileWork
Environment
HostileWork
Environment
QuidPro Quo
QuidPro Quo
unwelcome and demeaning sexuallyrelated behavior creates an intimidating and offensive work environment
unwelcome and demeaning sexuallyrelated behavior creates an intimidating and offensive work environment
employee outcomes depend on whether an individual submits tosexual harassment
employee outcomes depend on whether an individual submits tosexual harassment
1.3
9Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Common Managerial Common Managerial Mistakes Mistakes in Sexual Harassment Lawsin Sexual Harassment Laws
That the victim and harasser must be of the That the victim and harasser must be of the opposite sexopposite sex
That harassment can only occur between That harassment can only occur between coworkers or supervisors and subordinatescoworkers or supervisors and subordinates
That only victims can file complaintsThat only victims can file complaints
Assuming:
1.3
10Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Company Responsibilities Company Responsibilities
Respond immediately to make sure Respond immediately to make sure sexual harassment laws are sexual harassment laws are followedfollowed
Write a clear, understandable sexual Write a clear, understandable sexual harassment policyharassment policy
Establish clear reporting proceduresEstablish clear reporting procedures Comply with federal, state, and local Comply with federal, state, and local
sexual harassment lawssexual harassment laws
1.3
11Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Finding Qualified WorkersFinding Qualified Workers
After reading the next two sections, you should be able to:
2.2. explain how companies use recruiting to find explain how companies use recruiting to find qualified job applicants.qualified job applicants.
3.3. describe the selection techniques and describe the selection techniques and procedures that companies use when deciding procedures that companies use when deciding which applicants should receive job offers.which applicants should receive job offers.
12Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
RecruitingRecruiting
Job Analysisand
Recruiting
Job Analysisand
Recruiting
InternalRecruiting
InternalRecruiting
ExternalRecruiting
ExternalRecruiting
2
13Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Job Analysis and RecruitingJob Analysis and Recruiting
work activities
tools and equipment used to do the job
context in which the job is performed
personnel requirements for performing the job
work activities
tools and equipment used to do the job
context in which the job is performed
personnel requirements for performing the job
Information Collected by a Job Analysis
2.1
14Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Job Analysis and HRMJob Analysis and HRM
Job AnalysisJob AnalysisJob AnalysisJob Analysis
Job DescriptionJob DescriptionJob DescriptionJob Description Job Job SpecificationsSpecifications
Job Job SpecificationsSpecifications
HR SubsystemsHR SubsystemsHR SubsystemsHR Subsystems
RecruitingRecruitingRecruitingRecruiting SelectionSelectionSelectionSelection TrainingTrainingTrainingTraining PerformancePerformanceAppraisalAppraisal
PerformancePerformanceAppraisalAppraisal SeparationSeparationSeparationSeparation
Adapted From Exhibit 12.3
2.1
15Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Job Analysis and RecruitingJob Analysis and Recruiting
JobDescription
JobDescription
written description of the basic tasks, duties, and responsibilities requiredof an employee holding a particular job
written description of the basic tasks, duties, and responsibilities requiredof an employee holding a particular job
JobSpecification
JobSpecification
a written summary of the qualificationsneeded to successfully perform a job
a written summary of the qualificationsneeded to successfully perform a job
2.1
16Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Internal RecruitingInternal Recruiting
A pool of applicants who already A pool of applicants who already work for the companywork for the company
““Promotion from within”Promotion from within” Improves employee morale and Improves employee morale and
motivationmotivation Reduces employer time and costReduces employer time and cost Job posting is the procedure for Job posting is the procedure for
internal advertisinginternal advertising Career path is a planned sequence Career path is a planned sequence
of jobsof jobs
2.2
17Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Methods for External Methods for External RecruitingRecruiting
AdvertisingAdvertising Employee referralsEmployee referrals Walk-insWalk-ins Outside organizationsOutside organizations Employment servicesEmployment services Special eventsSpecial events Internet job sitesInternet job sites
2.2
18Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
SelectionSelection
SelectionTests
SelectionTests InterviewsInterviews
Application Formsand Résumés
Application Formsand Résumés
References andBackground Checks
References andBackground Checks
3
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Topics to Avoid on Application Blanks Topics to Avoid on Application Blanks
and during Selectionand during Selection 1. Children1. Children
2. Age2. Age
3. Disabilities3. Disabilities
4. Physical characteristics 4. Physical characteristics
5. Maiden name5. Maiden name
6. Citizenship6. Citizenship
7. Lawsuits7. Lawsuits
8. Arrest records 8. Arrest records
9. Smoking9. Smoking
10. Medical conditions10. Medical conditionsAdapted from Exhibit 12.4
3.1
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References and Background References and Background ChecksChecks
References or background checks are not References or background checks are not always provided by previous employersalways provided by previous employers
Making background checks more effectiveMaking background checks more effective dig deeper for more informationdig deeper for more information get permission in writingget permission in writing document all checksdocument all checks consider hiring private investigatorsconsider hiring private investigators
3.2
21Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Selection TestsSelection Tests
WorkWorkSampleSample
BiographicalBiographicalDataData
PersonalityPersonality
AssessmentAssessmentCentersCenters
CognitiveCognitiveAbilityAbility
SpecificSpecificAbilityAbility
SelectionSelectionTestsTests
3.3
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InterviewsInterviews
Unstructured InterviewsUnstructured Interviews free-flow of questionsfree-flow of questions
Structured InterviewsStructured Interviews interviewer uses standard set of interviewer uses standard set of
prepared questionsprepared questions
Semi-structured InterviewsSemi-structured Interviews some structure combined with some structure combined with
interviewer judgementinterviewer judgement
3.4
23Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Questions in Structured Questions in Structured InterviewsInterviews
Situational QuestionsSituational Questions
Behavioral QuestionsBehavioral Questions
Background QuestionsBackground Questions
Job-Knowledge QuestionsJob-Knowledge Questions
3.4
24Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Guidelines for Conducting Guidelines for Conducting Effective Structured InterviewsEffective Structured Interviews
Planning the Interview
Identify and define the KSAO needed for jobIdentify and define the KSAO needed for job Develop key behavioral questions for each KSAO Develop key behavioral questions for each KSAO For each KSAO , develop a list of things to look For each KSAO , develop a list of things to look
for in applicant’s responsesfor in applicant’s responsesKSAO: Knowledge, skills, abilities, and other characteristics
3.4
25Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Guidelines for Conducting Guidelines for Conducting Effective Structured InterviewsEffective Structured Interviews
Conducting the Interview
Create a relaxed interview atmosphereCreate a relaxed interview atmosphere Review the applicant’s informationReview the applicant’s information Allocate adequate timeAllocate adequate time Put the applicant at easePut the applicant at ease Tell the applicant what to expectTell the applicant what to expect Obtain job-related information (refer to KSAO)Obtain job-related information (refer to KSAO) Describe the job and organization Describe the job and organization
3.4
26Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Guidelines for Conducting Guidelines for Conducting Effective Structured InterviewsEffective Structured Interviews
Review your notes immediately Review your notes immediately Evaluate the applicant on each KSAOEvaluate the applicant on each KSAO Determine each applicant’s probability of Determine each applicant’s probability of
success and make a hiring decision success and make a hiring decision
3.4
After the Interview
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What Really WorksWhat Really WorksUsing Selection Tests to Hire Good Using Selection Tests to Hire Good WorkersWorkers
Cognitive Ability Tests
10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of successprobability of success 76%76%
Work Sample Tests
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of successprobability of success 77%77%
4
28Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
What Really WorksWhat Really WorksUsing Selection Tests to Hire Using Selection Tests to Hire Good WorkersGood Workers
Assessment Centers
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of successprobability of success 69%69%
Structured Interviews
10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of successprobability of success 76%76%
4
29Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
What Really WorksWhat Really WorksUsing Selection Tests to Hire Good WorkersUsing Selection Tests to Hire Good Workers
Cognitive Ability + Work Sample Tests10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of successprobability of success 82%82%
Cognitive Ability + Integrity Tests10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of successprobability of success 83%83%
Cognitive Ability + Structured Interviews10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
probability of successprobability of success 82%82%
4
30Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Developing Qualified Developing Qualified WorkersWorkersAfter reading the next two sections, you should be able to:
4.4. describe how to determine training needs describe how to determine training needs and select the appropriate training methods.and select the appropriate training methods.
5.5. discuss how to use performance appraisal to discuss how to use performance appraisal to give meaningful performance feedback.give meaningful performance feedback.
31Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
TrainingTraining
Training Needs
Training Needs
TrainingMethods
TrainingMethods
TrainingEvaluation
TrainingEvaluation
4
32Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Training MethodsTraining Methods
Adapted From Exhibit 12.6
Impart Informationand Knowledge
Impart Informationand Knowledge
Develop Analyticaland Problem-SolvingSkills
Develop Analyticaland Problem-SolvingSkills
Practice, Learn, orChange Job Behaviors
Practice, Learn, orChange Job Behaviors
All of the above
All of the above
• films and videos• lecture• planned readings
• films and videos• lecture• planned readings
• case studies• coaching and mentoring• group discussions
• case studies• coaching and mentoring• group discussions
• on-the-job training• role-playing• simulations and games• vestibule training
• on-the-job training• role-playing• simulations and games• vestibule training
• Computer-based learning• Computer-based learning
4.1
33Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Evaluating TrainingEvaluating Training
ReactionsReactions
LearningLearning
BehaviorBehavior
ResultsResults
how satisfied trainees were with the program
how satisfied trainees were with the program
how much employees improvedtheir knowledge or skills
how much employees improvedtheir knowledge or skills
how much employees actually changedtheir on-the-job behavior
how much employees actually changedtheir on-the-job behavior
how much training improvedjob performance
how much training improvedjob performance
4.2
34Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Performance AppraisalPerformance Appraisal
MeasuringJob
Performance
MeasuringJob
Performance
SharingPerformance
Feedback
SharingPerformance
Feedback
5
35Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Measuring Job Performance: Measuring Job Performance: Common Rating ErrorsCommon Rating Errors
Central tendencyCentral tendency all workers are rated as being all workers are rated as being
“average”“average”
Halo errorHalo error all workers are rated as performing at all workers are rated as performing at
the same level in all parts of their jobsthe same level in all parts of their jobs
Leniency errorLeniency error all workers are rated as performing at all workers are rated as performing at
a high levela high level
5.1
36Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Measuring Job PerformanceMeasuring Job Performance
Improving Job Performance Measurements Improving Job Performance Measurements
Improve Performance Appraisal Measures
Improve Performance Appraisal Measures
TrainPerformance Raters
TrainPerformance Raters
5.1
37Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Improving Performance Improving Performance Appraisal MeasuresAppraisal Measures
Objective performance measuresObjective performance measures quantifiable outcomes (output, scrap, quantifiable outcomes (output, scrap,
sales,sales,customer complaints, or rejection customer complaints, or rejection rates)rates)
Subjective performance measuresSubjective performance measures trait rating scalestrait rating scales behavioral observation scales (BOS)behavioral observation scales (BOS)
5.1
38Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Rater TrainingRater Training
Teach raters how to avoid errorsTeach raters how to avoid errors Improve rating accuracyImprove rating accuracy Video training and role playing Video training and role playing
often usedoften used
5.1
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Sharing Performance Sharing Performance FeedbackFeedback
Managers often fail to effectively Managers often fail to effectively give employees performance give employees performance feedbackfeedback
360-degree feedback360-degree feedback boss, subordinates, peers, and the boss, subordinates, peers, and the
employeeemployee best for employee developmentbest for employee development
5.2
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Performance FeedbackPerformance Feedback
1. Separate developmental feedback from administrative feedback
2. Base performance appraisal feedback sessions on self-appraisals
3. Eliminate the “grading” aspect of performance appraisal
1. Separate developmental feedback from administrative feedback
2. Base performance appraisal feedback sessions on self-appraisals
3. Eliminate the “grading” aspect of performance appraisal
Recommendations for Sharing Performance Feedback
5.2
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Performance FeedbackPerformance Feedback
1. Overall progress
2. Problems encountered in meeting job requirements
3. Opportunities to improve performance
4. Long-range plans and opportunities
5. General discussion of possible plans andgoals for the coming year
1. Overall progress
2. Problems encountered in meeting job requirements
3. Opportunities to improve performance
4. Long-range plans and opportunities
5. General discussion of possible plans andgoals for the coming year
What to Discuss in Performance Appraisal Feedback Sessions
5.2
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Keeping Qualified WorkersKeeping Qualified Workers
After reading the next two sections, you should be able to:
6.6. describe basic compensation strategies and describe basic compensation strategies and explain how they affect human resource explain how they affect human resource practice.practice.
7.7. discuss the four kinds of employee discuss the four kinds of employee separations:separations:termination, downsizing, retirements, and termination, downsizing, retirements, and turnover.turnover.
6
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CompensationCompensation
CompensationDecisions
CompensationDecisions
EmploymentBenefits
EmploymentBenefits
6
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Pay-Level DecisionsPay-Level Decisions
Should workers be paid at, below, Should workers be paid at, below, or above current market wage?or above current market wage? above market pay makes it easier for managers to above market pay makes it easier for managers to
attract and retain employeesattract and retain employees Job evaluationJob evaluation is used to determine the is used to determine the
worth of jobsworth of jobs pay the “going rate”pay the “going rate”
6.1
45Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Pay-Variability DecisionsPay-Variability Decisions
Variable PayVariable PayStructuresStructures
Variable PayVariable PayStructuresStructures
CommissionCommission
Profit sharingProfit sharing
Employee stock ownershipEmployee stock ownership
Stock optionsStock options
PieceworkPiecework
6.1
46Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Pay-Structure DecisionsPay-Structure Decisions
Hierarchical pay structuresHierarchical pay structures big differences in pay among pay big differences in pay among pay
levelslevels work best for independent workwork best for independent work Compressed pay structuresCompressed pay structures fewer pay levels with smaller fewer pay levels with smaller
differences differences in pay among pay levelsin pay among pay levels
work best for interdependent workwork best for interdependent work
6.1
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Employee BenefitsEmployee Benefits Compensation other than direct wagesCompensation other than direct wages Employee benefits are legally mandated:Employee benefits are legally mandated:
Social SecuritySocial Security worker’s compensationworker’s compensation unemployment insuranceunemployment insurance
Cafeteria benefit plansCafeteria benefit plans employees can select from optional employees can select from optional
benefitsbenefits Payroll deductionsPayroll deductions
6.2
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Employee SeparationsEmployee Separations
TerminationsTerminations DownsizingDownsizing
TurnoverTurnoverRetirementsRetirements
7
49Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
Terminating EmployeesTerminating Employees
Often mismanagedOften mismanaged Minimize problems in firing Minimize problems in firing
employeesemployees firing should not be the first firing should not be the first
optionoption firing should be for a good reasonfiring should be for a good reason
““employment at will”employment at will” wrongful dischargewrongful discharge
firing should be done in privatefiring should be done in private
7.1
50Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved
DownsizingDownsizing1.1. Provide clear reasons for the Provide clear reasons for the
layoffs.layoffs.2.2. Get information to avoid laying off Get information to avoid laying off
employees with critical skills.employees with critical skills.3.3. Training managers in how to tell Training managers in how to tell
employees.employees.4.4. Give employees the bad news early Give employees the bad news early
in the day.in the day.5.5. Provide outplacement services and Provide outplacement services and
counseling.counseling.6.6. Communicate with survivors.Communicate with survivors.
7.2
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Employee TurnoverEmployee Turnover
Loss of employees who voluntarily Loss of employees who voluntarily choose to leave the companychoose to leave the company
Functional turnover (encouraged)Functional turnover (encouraged) the loss of poor-performing employeesthe loss of poor-performing employees
Dysfunctional turnover (discouraged)Dysfunctional turnover (discouraged) the loss of high performing employeesthe loss of high performing employees
7.3