Working With Employees - Chapter 15

7/29/2019 Working With Employees - Chapter 15

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Chapter 15

WORKING WITH EMPLOYEES


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p

Management Talk

What makes us stand out is our heritage as a

cooperative and commitment to providing agreat work environment. While we work hard to

create a challenging and enjoyable workenvironment, it takes great people to be a best

company.

Wally Smith, REI, President and CEO


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Objectives

Understand the methods that organizations useto select employees

Explain the difference between a transfer,promotion, and separation

Identify different methods of training employees Understand the methods that organizations use

to measure performance Explain the process of Management By

Objectives Understand the importance of rewarding

employees


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Understanding Management

REI (Recreational Equipment Inc.) has repeatedlybeen named to Fortunemagazines list of 100 bestcompanies to work for in America.

The outdoors and sporting goods retailer has earnedthis distinction by offering employees a unique set ofbenefits, including flexible health, life, and disabilityinsurance plans, an employee profit-sharing plan, anda challenge grant program that encourages

employees to test REI products on wildernessadventures.


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Management Skills

Why would employee enthusiasm beimportant to a company like REI?

If you were publishing a list of the 10 bestcompanies to work for in your town, whatthings would you take into consideration?


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Sec. 15.1: Meeting Personnel Needs

What kind of experiences have you hadapplying for jobs?


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What Youll Learn

How companies use methods such asinterviewing and testing to selectemployees

How the human resources departmenthandles employees leaving positions

What training techniques companiesdevelop to teach new concepts


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Why is this important?

A successful manager must develop effectiveprocesses to select, train, and maintain

employees


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How Companies Select Employees

Human Resources (HR)

A department that recruits employees, manages trainingand compensation, and plans for future personnel

HR Functions Advertise positions, select from applicants, fill positions

Develop employee plan in respect to company goals andbusiness environment

Create a Job Description Written statement identifying the type of work and necessary

qualifications for a job

Sets the standards against which applicants can be rated

Online Source: www.workforceinfo.state.il.us (Career Click)
http://www.workforceinfo.state.il.us/http://www.workforceinfo.state.il.us/


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How Companies Select Employees

THINGS LISTED ON A

JOB DESCRIPTION:1) Essential job functions2) Knowledge and critical skills3) Physical demands4) Environmental factors5) Any information that may be

necessary to clarify jobduties or responsibilities

SAMPLE:

Title: Receptionist

Duties and responsibilities:Receives and directs phone calls, greetsvisitors, receives and sorts mail andpackages, orders office and kitchensupplies, key documents when required

Qualifications:High school graduate. Needs goodcommunication skills and ability to getalong with people.

Keying speed of 45 wordsper minute.Experience desirable but notnecessary.

Salary: $20,000- $25,000, depending onexperience


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Alternatives to Adding

StaffFreelancers

*

Interns

*Temporary Workers


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Freelancers

Provide services to business by hourlybasis or by the job

Used when full time employment is notneeded

Examples: Bookkeepers, accountants,lawyers, graphic designers, windowdisplay artists, advertising copywriters,and photographers


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Interns

Students, who will work for little or no payin order to gain experience in a particularfield

Found in community, local colleges, andhigh schools


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Temporary Workers

Can be used for long periods of time as analternative to full time hiring

Paid a workers salary plus a fee to theagency who supplies the worker

Ex: Seasonal, substitute for injured or sickworkers on leave


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How Companies Recruit Employees

Get the readers attentionStimulate the readers interestPresent a solid specific factEnd ad with a call to action

Find employees for businesses andother institutionsTry to match people with jobs theirlooking for to the right businessCharge a fee when they are successful

Most college and universities havethemCollect info on career and employmentopportunities

Make them available to students orgraduatesNo fee is chargedAsk college to make you businesslisted at their placement center


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How Companies Recruit Employees

Often businesses exceptreferrals from reliablesources on a good

applicant for a job theiroffering

On the world wide web mostly allcompanies use their business websites to post job availability andhave online applications

Also businesses can mention theirlocation for people to apply

Online Job Search Databases

Post Classified Ads and Resumes

www.monster.com

www.careerpath.com

www.careerbuilder.com
http://www.monster.com/http://www.careerpath.com/http://www.careerbuilder.com/http://www.careerbuilder.com/http://www.careerpath.com/http://www.monster.com/


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The Selection Process

Standard Selection Procedures

1. Preliminary screening

HR Department will sort out hundreds of letters and resumes inresponse to one classified ad

I.E. Southwest Airlines receives 129,000 resumes and hiresapproximately 3,411 people every two years

Applicant pool is narrowed and input from team members is given

Check applicants references and credentials

Call for an interview


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2. Testing

Used to differentiate applicants with similar credentials

Provides a uniform evaluation of the qualifications of a prospectiveemployee

Predictive Index (PI) 10-minute personality test is used for effectively hiring and working with

employees

Identifies an individuals strengths and weaknesses

Over 3,000 companies use it (IKEA, Budget Rent-A-Car, colleges,professional sports teams)

Validity and Reliability of Test

Factors relevant to the job

Group of people taking test under similar circumstances get similar results

Remove the element of chance


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The Selection ProcessCommon Employment Tests

Aptitude TestMeasures capacity to learn a particular subject or skill

Psychomotor TestMeasures strength, dexterity, and coordination

Job Knowledge Test

Measures knowledge related to a particular job

Proficiency TestMeasures performance on a sample of the work required in the

job

Interest TestCategorizes applicants interests relative to the job

Psychological TestAttempts to define personality traits

Polygraph TestRecords changes in physical response as a person responds toquestions to determine whether responses are truthful


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3. Employment interview

Allow the employer to learn more about the applicant than can beconveyed in a resume or cover letter

Preparing for an Interview

Setting aside space - Privacy

Putting the applicant at ease Small talk, Refreshment, Interviewer shouldbe outgoing trained in interviewing skills

Taking control over the interviewtake notes to record important points,encourage applicant to talk, but control the direction of discussion


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The Selection ProcessStandard Selection Procedures

3. Employment interview

Structured Interview

Prepare a list of questions when interviewing many applications for oneposition

Provides uniform information for each applicant

Remind the applicant to cover each question

Where do you want to be in five years?

What are your strengths in working with others?

Unstructured Interview

A conversation between employer and applicant in a relaxed environment

Ask open-ended questions

Why did you leave your previous job?

Tell me about yourself

Applicant has the opportunity to ask questions about the organization

Not always reliable interviews

Pertinent questions may not be covered and bias is a possibility


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Standard Selection Procedures3. Employment interview

First Impressions on personal attributes can be taken into consideration

Halo Effect

Single characteristic dominates the interviewers impression of the applicant

(I.E.) - Pleasant Personality dominates the perception of the applicant andother concerns are overlooked

Doesnt indicate if the candidate is qualified

Applicant with a pleasant personality in an interview is common


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4. Personal judgment

Choosing which individual gets the job

Employer must make a value judgment as to which applicant would bemost successful

Follow the selection procedures for effective decision

What if no applicants are qualified?

Offer a higher salary or better benefits to attract more applicants

Re-advertise in a different newspaper or Web site


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Legal Considerations in Selection

The Wrong Questions

Due to federal law, certain questions cannot be asked of job candidates.

Questions to avoid when interviewing candidates include:

1. Age (may ask if they are older than a certain age if it is a requirement to ofthe job [i.e.-school bus driver, forklift operator]

2. Date of birth

3. Religion or church affiliation

4. Father's surname or mother's maiden name

5. Marital status

6. What languages they speak (unless it is a job requirement)

7. How many children they have, their children's ages and who will care for thechildren while applicant is working

8. Financial information not related to compensation

9. If they served in the military of any foreign country10. If they have ever been arrested? (may ask if they have been convicted of a

felony/misdemeanor)


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Griggs v. Duke Power Company African American employees at a power-generating plan

objected to the requirement of a high-school diploma orpassing an intelligence test as conditions of employment in ortransfer to jobs at the plant

Court decided if a test negatively impacts female or minoritygroup applicants, then company must prove validity andprevalence to job requirements

Even if a company does not mean to discriminate, if may

unintentionally select an unfair test

Findlaw.com source: GRIGGS v. DUKE POWER CO., 401 U.S. 424 (1971)
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Albemarle Paper Company v. Moody North Carolina paper mill was seeking the reversal of a Court of Appeals

decision that eliminated its testing program and awarded back pay to a groupof African American employees

Managers argued that in addition to creating diversity programs, they hadstatistical proof that their testing was job-related

Lower court noted that they had made efforts to deal with segregation

Supreme Court agreed with Court of Appeals that the intentions of thecompany were not the main issue

It held that it was not enough to show that the best workers did well on thetests, or that a testing program improved the overall quality of the work force.

Any tests had to be specifically related to performing the job in question.

Findlaw.com source: ALBEMARLE PAPER CO. v. MOODY, 422 U.S. 405 (1975)

T f P i d
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Transfers, Promotions, and

Separations

HR Department must account for employees leavingpositions, as well as new employees being hired

Transfers

Moves an employee into another position within thecompany

Generally maintains the same level of responsibility andpay

Employee can learn different functions withinorganization

T f P ti d


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Separations

Promotions Moving to a position of greater responsibility with higher

status and pay

Merit-based and encourage performance

Considerations: Merit, seniority, or length of service

Performance in current job

How they will adapt to new job (aptitudes and interest)

Peter Principle possible for employees to be promoted untilthey reach a level at which they can no longer perform

Employee has risen to her level of incompetence

Will gain a mediocre employee and lose a competent one throughinappropriate promotion

T f P ti d


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Separations

Separations - Final way in which an employee leaves a position

Voluntary employee resignso Exit Interview pinpoints reasons why an employee is leaving

Involuntary employee is laid-off or terminatedo Layoffs there is not enough work for all employees

o Result of downsizing to increase efficiency

o Employee can be called back

o Termination employee is asked to leave because of poorperformance or failure to follow company ruleso Failures from previous actions of training, counseling, and/or disciplinary

action

o Last result

o Possible reassignment to a less stressful job will eliminate the waste of

company resources and time invested in hiring and training that individual


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Training Employees

A way for employees to learn new concepts, gain newskills, or update existing ones

Training can be to entire organization if a new way ofoperating a business function is implemented (I.E. - District211 Online Gradebook)

Provide meaningful training

Positive reinforcement

Feedback regarding progress

Encourage learning by setting standards and measuring performance

Outback Steakhouse, the Australian-themed franchise

Monthly video conference meetings to all kitchen staff

Forum to discuss cooking and menus

Serving techniques to food handling


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Training Employees

On-the-Job Training Employee works and trains under close supervision until he or she

understands the task and performs it correctly

Job Rotation Cross-Training: a form of on-the-job training that exposes employees to

several jobs within an organization

Perform each job for a fixed period

Allows employee to master many skills


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Training Employees

Vestibule Training

Training area is set up with equipment similar to thatused in the actual job

Employees learn and practice in a simulated workenvironment Used to train cashiers, bank tellers, clerks, and

technicians

Creating training area can be expensive

Can the employee adapt to working in the realenvironment, with all its pressures, when training end?


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Training Employees

Apprenticeship Training

Time-tested form of on-the-job training

Experienced worker (mentor) passes on skills to an

assistant Skilled occupations

Carpentry

Mechanics

Physicians


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Training Employees

Classroom Training

Presents general information about the organization,rules, safety, and job concepts in a classroom setting

Lectures, Q & R, Open Discussion

Allows for information to be shared with large groupsat low cost 2-hour Bus Driving Re-fresher Courses (Mandatory)


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Training Employees

Computer-based Training

Internet Training in the classroom or on an individualbasis, contributes to employee development at a lowcost

View material at computer workstations and answerquestions at their own pace

Electronic learning will grow to approx. $23.7 billionby this year(Source: International Data Corporation)

Percentage of Organizations Using


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Percentage of Organizations Using

Various Methods for Employee Training

92% 90%

79%

62%

54%

51%

46%43%

41%

27%17%

11%

10%3%

0%

10%

20%

30%

40%

50%60%

70%

80%

90%

100%

Percentage

Video

Lectures

One-on-One Instruction

Role Plays

Simulations/Games

Audio

Slides

Films

Case Studies

Self Assessment

Self-Study Programs

Multimedia

Teleconferencing

Video Teleconferencing

Computer Conferencing

Source: Adapted by B. Filipczak, What Employers Teach, Training 29, no. 10 (1992) p. 46.

1992 Lakewood Publications, Minneapolis, MN.


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Extension Activity!!!

Have students interview personneldirectors (at the school or in a business)

about what types of interviews theyconduct and what general traits they lookfor in new hires.

Have students use the Internet to research

and compare career tests


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15. 1: Chapter Summary

The employee selection procedure includesscreening, testing, and interviewing

Employees may leave a position through

transfers, promotions, or separationsMethods of employee training include on-the-job

training, vestibule training, apprenticeship,classroom training, and computer-based training


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Sec. 15.2: Rewarding Performance

What types of rewards will you work forand why?

Predict what are the most effectiverewards and what their importance is inthe business world.


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What Youll Learn

Four different methods of evaluation employeeperformance

Why is it important to provide feedback toemployees

How to connect a reward system toperformance evaluation

Why is this Important?

Reward systems are developed to maintain employee motivation. It is

necessary to evaluate performance and provide feedback to produce positiveresults.


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How is Performance Measured?

Rewarding employees motivates them to do theirbest

Employers must show appreciation to retainqualified employees

America West Airlines Offers employees a $50 bonus for every month in which

the company ranks in the top three major airlines ineither on-time performance or lack of customer

complaints Performance Assessments

Identify problem areas and guides employees future

efforts


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Performance measures:

An employees degree of accomplishment and results in

job-related tasks

Effort that an employee exerts on the job

Role perception: Employee must understand his or her part in an

organization


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Management By Objectives (MBO) Process often used in quality improvement and

goal setting for the whole organization as wellas performance appraisal

Empowers employees by involving them in

personal goal setting Establishes well-defined job objectives Develops an action plan Allows employees to implement the action plan

Evaluates achieved performance-based objectives Takes necessary corrective action Establishes new objectives for the future


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Management By Objectives (MBO)

Should be clear and straightforward

Challenging and incentives for improvement

Manager and employee should agree on objectives thatare fair and realistic

Sample Objectives To answer all customer complaints in writing within three days of

receipt of complaint

To reduce order-processing time by two days within the next six

months To implement the new computerized accounts receivable system by

August 1

How do these sample objectives meet that standard?


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Production Standards

Used when something can be counted ormeasured

Set an expected level of output

Employees compare their production with thisstandard


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Essay Appraisal

Manager describes the employees

performance in a written narrative

A form which includes questions such as: Describe, in your own words, this employees performance What are his or her strengths and weaknesses?

Writing Skills are necessary

May be subjective and difficult to defend against

accusations of unfairness


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Critical-Incident Appraisal

Manager records specific situations that reflectthe employees performance, behavior, and

attitudes on the job

Used as a basis for appraisal and feedback Produces large volume of material and recording is time-

consuming

Problems of subjectivity based on the likeability of theemployee by the supervisor


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Providing Feedback

Managers must explain results to employees,especially if there is negative feedback

The Successful Appraisal InterviewThe following factors contribute to the success of the appraisal interview:

Employee involvement Recognition and praise

Manager and employee work together to set improvement goals

Discussion of problems

Avoidance of heavy criticism

Encourage the employee to voice opinions

Opportunity for employee to prepare for interview

Perception that good performance will be rewarded

How could these factors help to achieve the goal of motivating an employee

to improve?

Legal Considerations


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Legal Considerations

Title VII of the Civil Rights Act

Requires that an organizations performance appraisalsystem be bona fide.

System cant have disproportionately negative effects uponminorities, women, or older employees

An appraisal system that is fair and legal should:

Be based on Job Descriptions

Emphasize performance rather than personal traits

Communicate appraisal results to employees

Allow employee response

Train mangers in conducting proper evaluation

Ensure that appraisals are written and documentation is retained

Be consistent


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Organizational Reward System

Intrinsic Rewards

Intangible and internal to the individual

Extrinsic Rewards

Controlled and distributed by the organization

Child Day Care

Basketball Courts

Weekly softball games

Fitness Center

Intrinsic Rewards Extrinsic Rewards

Sense of achievement

Feelings of accomplishment Informal recognition

Job Satisfaction

Personal Growth

Status

Formal Recognition

Fringe Benefits Incentive Programs

Base Wages

Promotion

Social Relationships

Relating Rewards to Performance


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Relating Rewards to Performance

Free Enterprise System

o Rewards should be related to performanceMerit-pay salary increases are based on performanceappraisals

Other rewards not based on performanceo Across-the-board pay salary increases of a fixed percentage

o Insurance plans

o Paid leave

o Sick leaveo Personal Leave

o Emergency Leave

o Paid Vacation Leave

o Discounts

O li S 1998 I f W ld C ti S
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Online Source: 1998 InfoWorld Compensation Survey
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15. 2: Chapter Summary

Performance is the degree of accomplishment incompleting job-related tasks measured by results

Performance can be evaluated by MBO, productionstandards, essay appraisal, and critical-incident

appraisal

Supervisors should provide feedback to employees

The organizational rewards system includes intrinsic andextrinsic rewards

Rewards should be based on performance


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Writing Skills

How would you use the Management

By Objectives process to form an

achievement plan for the rest of your

school year?


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Assessing Team Skills

You are the head of human resources at a monthly teenmagazine. The Midwest region needs a new fashionwriter for its magazine. You posted an ad in localnewspapers and have received resumes and writingsamples from many qualified applicants. Still, the

interviewing editor has turned down every potentialemployee that she has interviewed. Her interviewingstyle is informal, and you believe that his is the problem.

With your team, explain the potential dangers of theinformal interview, including sample interview questions.

Then, propose the alternative of a more formal interviewincluding sample interview questions. Finally, explainwhy you think this method may provide positive results inthe search.


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Internet Skills

Using the Internet, read 10 to 15 joblistings in an industry and career thatinterests you. Then make a list of the top

10 traits you find from the advertisements.

Documents

Working With Employees - Chapter 15